Israel’s economic growth will be boosted by a 2.2% increase in oil production, the country’s economy ministry said Thursday, in its first estimate of economic growth since it began tracking the data.
The ministry’s economic research institute also said Thursday that Israel’s gross domestic product would expand by 1.4% next fiscal year, a sign of the government’s efforts to stabilize the economy after years of low growth.
The economy is expected to grow by 3.1% in the second half of this year, the first time in almost 20 years that the economy has exceeded 4% growth.
But the economy is unlikely to surpass 4% next financial year because of the high costs of the war in Gaza, which has killed more than 1,100 people and forced more than 2 million people from their homes.
The figures are likely to add to pressure on Prime Minister Benjamin Netanyahu, who is running for re-election this year.
He has been trying to slow the growth rate in the oil sector and hopes to win support from the left-wing Labor Party.
Netanyahu, who came to office in 2009 promising to reverse the economic crisis, has faced criticism from the right, particularly the left, over a lack of growth and rising inequality.