GDP contracted by 28.7 per cent in the second quarter of 2020 compared to the first quarter of the year, the sharpest decline in 40 years. The decline was mainly due to the effects of the coronavirus pandemic and the steps taken by the government to stop the spread of the virus. This figure means an 8.1 per cent damage to the GDP on a quarterly basis, far more severe than the estimates of the Israeli government.
A sharp decline of an annualized 43.4 per cent was recorded in private consumption expenditure in the second quarter, while private consumption per capita fell by 44.2 per cent. A significant 41.7 per cent drop in imports of goods and services was seen in the second quarter, while goods and services exports fell by 29.2 per cent.