Nov 16, 10:06 AM EST

Israel economy contracts by 0.4 percent in Q3

World Video

Buy AP Photo Reprints
Multimedia
Assault on Gaza: Mapping the attacks
Gaza assault takes its toll on children
A closer look at Hamas
Latest News
Italian man seriously wounded at West Bank protest

Peres criticizes Israel's 'Jewish state' bill

Pope condemns Islamic State violence

Spy balloons give police new view of Jerusalem

'Jewish state' bill tests Israeli democracy

PHOTO GALLERY
AP Photo

Conflict in the Middle East

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Brazil's GDP grows slightly in third quarter

Eurozone inflation dips again as energy costs tank

Japan inflation eases, other data mixed in October

Brazil's Rousseff names banker as finance minister

German unemployment steady at 6.3 percent

Philippines unlikely to meet full-year growth goal

Weak consumer, business demand may slow US growth

IMF says Egypt's economy starting to recover

US economy posts even stronger growth in Q3

Lions Gate and Tesla are big market movers

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

JERUSALEM (AP) -- Israel's government says the country's gross domestic product shrank by 0.4 percent in the third quarter of 2014, the first time the economy has contracted in almost five years.

Sunday's announcement from the Central Bureau of Statistics covers the period when the country fought a 50-day war with Islamic militants in the Gaza Strip. The war ended Aug. 26. Israel estimated its cost at $2.5 billion, slightly less than 1 percent of GDP.

The data comes as tensions flare with Palestinians over a disputed Jerusalem holy site and with the United States over the government's determination to expand settlements in east Jerusalem and the occupied West Bank.

Israel's last economic contraction came during the global financial crisis-impacted first quarter of 2009.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.