Israel’s economy shrank for the first time since 2009 in the third quarter, according to figures published by the Central Bureau of Statistics.
The country's Gross Domestic Product contracted by 0.4 percent in the third quarter, compared to increases of 3.2% and 2.2 % in the first two quarters of this year, respectively.
The conflict with Hamas in Gaza in July and August slowed overall production and forced consumers to largely stay at home. GDP for all of 2014 is expected to be 2.2%.
The Bank of Israel lowered its benchmark interest rate to an all time low of 0.25% earlier this year and has left in unchanged in a bid to boost economic growth.
Government spending increased by 3.1% in the third quarter, while private consumer spending rose by 3.9%.
Tourism, however, decreased by 31.1% in the quarter. In October, 19% fewer tourists visited Israel compared to October 2013.
Not including government expenditure, in total the economy decreased by 1.4% in the third quarter.
