Video|18 July 2024
MENA – Israel GDP and components
Amy McAlister
Associate Director, EMEA Macro Consulting
Israel’s GDP growth reached 14.4% in Q1 this year, with the economy rebounding significantly following a steep contraction of 21.6% in Q4 last year. Despite the ongoing war and an easing of government spending, increases in private consumption and surging investment supported growth. We forecast an expansion of 1.8% this year and 3.5% in 2025.
Meanwhile, Kuwait’s GDP fell by 4.4% in Q4 last year, as OPEC production cuts continued to weigh on oil sector output. The non-oil sector also declined by 2.3%. The new government hopes to prioritise reforms and development plan projects, which would support growth alongside the unwinding of oil production cuts, which we expect from Q4 of this year. We forecast GDP growth of 0.3% for 2024 and 2.7% for 2025.
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