Israel second-quarter GDP revised slightly up to -28.8% as COVID-19 slams economy

A street cleaner walks past shuttered shops amid Israel's second national coronavirus disease (COVID-19) lockdown in Ashkelon, Israel October 7, 2020.REUTERS/Amir Cohen

JERUSALEM (Reuters) - Israel’s economy shrank by an annualised 28.8% in the second quarter from the prior three months, the Central Bureau of Statistics said on Sunday in its third estimate that was slightly better than a 29.0% decline in its previous one.

The coronavirus pandemic badly damaged consumer spending (-44.0%), trade (-27.9%) and investment (-30.3%), although the gross domestic product drop in the April-June period was partly offset by a 26% gain in government spending.

A contraction of as much as 7% is projected in 2020, which would be its worst ever annual performance.

GDP declined 6.7% in the first quarter.

Reporting by Steven Scheer; Editing by Tova Cohen