Israel's economy expanded at a slower pace in the second quarter than initially estimated, according to data released on Tuesday, as the war on Gaza continues to dampen economic growth

Gross domestic product (GDP) rose by an annualized 0.3% in the April-June period, the Central Bureau of Statistics said in its third estimate, down from 0.7% reported a month ago and from an initial 1.2% published in August.

The economy was supported by gains in consumer and state spending and in investment in fixed assets, while exports fell.

Last week, the Bank of Israel trimmed its Israeli economic growth estimate in 2024 to 0.5% from a prior estimate of 1.5%.

Along with a weakening economy, inflation has spiked and central bank officials have warned of possible interest rate increases. It held rates steady last week for a sixth straight policy meeting.

First-quarter GDP growth was unrevised at 17.2%, as the economy bounced back from a steep contraction in the fourth quarter of 2023 when Israel started its relentless attacks on Gaza after a cross-border attack by the Palestinian resistance group Hamas.

Its attacks have killed more than 42,000 people in the Palestinian enclave, most of them women and children, according to local health authorities.

Israel has also mounted massive airstrikes across Lebanon against what it claims are Hezbollah targets since Sept. 23.

It has killed more than 1,540 people, injuring over 4,550 others, and displaced more than 1.34 million people. It also began a ground invasion earlier this month.