Israel's gross domestic product shrunk by an annualized 28.7% in the second fiscal quarter of 2020 and, together with faltering performance over the first quarter, which was severely impacted by the outbreak of the coronavirus in Israel, it has caused the economy to contract 10.1% over the first six months, the Central Bureau of Statistics said Monday.
Second-quarter figures show the worst GPD drop since Israel's establishment in 1948, financial daily Globes reported.
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Moreover, according to the Finance Ministry, the corona-triggered recession and the massive government bailout plan injected into thr private sector has stretched Israel's budget deficit to 123 billion shekels ($36 billion) or 9.1% of GDP for the 12 months ending September 2020 – up from 8.1% in August.
The increase in national deficit was expected, the ministry stressed, especially as tax collection dropped by 9.9% over the pandemic.
The Central Bureau of Statistics estimated Monday that the Israeli economy has regressed to the same level as it was during the fourth quarter of 2016.
Also on Monday, official figures released by Israel's Employment Service showed that nearly one million Israelis – 980,370 – have lost their jobs in the second quarter.
Data shows 260,000 Israelis joined the jobless lines in Septmebr alone.
The first lockdown triggered unprecedented unemployment of 26% – compared to 4% prior to the outbreak, with over a million Israelis filing for unemployment benefits.
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