Israel recorded its worst economic performance in more than 40 years with its gross domestic product plummeting by 28.7% in the second quarter of 2020, the Central Bureau of Statistics reported Sunday.
The second-quarter figures are the worst quarterly GDP drop since Israel's inception, the CBS said.
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The data shows that in the first half of 2020, Israel's economy shrank by an annualized basis of 10.1% after growing 3.4% in the second half of 2019.
Per capita private consumption shrunk by 44.2% in Q2-2020 and business output fell by 33.4%.
Israel's economy, regularly lauded for being one of the most stable in the world, was forced to slow down to about 15% activity as the public and private sectors were shuttered in early March in an effort to stem the spread of COVID-19.
While Israel has been gradually resuming economic activity over the past few weeks, the coronavirus crisis has triggered unprecedented unemployment of 26% – compared to 4% prior to the outbreak.
The government has introduced several stimulus plans to help the economy rebound, but their effect will only manifest in the third quarter of the fiscal year.
Israel is not the only country to be hit hard by the corona crunch. Data presented recently by the Organization for Economic Cooperation and Development shows that the British economy has shrunk by 59.8% in Q2, Canada's economy fell by 40%, Germany's economy lost 34.7%, and the US economy shrank by 32.9%.
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Commenting on the data, Prime Minister Benjamin Netanyahu said, "The Central Bureau of Statistics published that the decline in our GDP in the second quarter of 2020 was 7.8%, which is half the decline in the European states; it is almost the lowest in the world. South Korea is ahead of us and maybe two or three other countries.
"This is the result of the responsible policy that we have undertaken, which not only reduced the number of deaths in Israel but also the magnitude of the blow to the Israeli economy. We will continue to work for your livelihoods, for our economic future and for your health."
i24NEWS contributed to this report
