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flag Israel's economy contracted by 3.5% in Q2 2025 due to war with Iran, hitting business hardest.

flag Israel's economy shrank by 3.5% in Q2 2025, following a war with Iran that disrupted economic activities. flag The business sector was hit hardest, contracting by 6.2% after growing 4.4% in Q1. flag Private consumption and investment in fixed assets also declined, by 4.1% and 12.3%, respectively. flag The Bank of Israel has adjusted its 2025 GDP forecast down to 3.3%, citing the conflict's economic impact.

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