ALWAGHT- According to an Israeli media report, the regime is struggling after the 12-day war with Iran in June, with the economy experiencing a significant decline.
Israeli business outlet Calcalist reported that the recent 12-day war with Iran has set the country’s economy back by a full year, with official data showing a 3.5% decline in GDP compared to the previous quarter and about 1% in simple quarterly terms. The second quarter of 2025 recorded negative growth, and per capita output fell 4.4% amid nearly 2% annual population growth.
The commercial sector was hit hardest, with output dropping 7%, nearly twice the overall economic slowdown. The war reportedly cost Israel an estimated $6 billion, far exceeding earlier growth forecasts and leading economists to revise 2025 growth projections downward. Dependence on imports and vulnerability to sanctions or canceled trade agreements further threaten economic stability.
Analysts warn that two consecutive quarters of negative growth could push Israel into a recession, leaving living standards stagnant and delaying recovery. Calcalist emphasized that the regime remains highly exposed to external shocks, particularly from Europe, which could have far-reaching consequences for the country’s economic future.
