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Israel’s economy is showing remarkable resilience despite nearly 3 years of war.
The Bank of Israel expects 3.8% GDP growth in 2026.
The IMF is even more optimistic — forecasting 3.5% this year and 4.4% in 2027, outperforming all G7 countries.
Key strengths:
• Unemployment at just 3.2% (lower than US & Eurozone)
• Debt-to-GDP ratio of 69.8% (much healthier than G7 average of 123.7%)
• High-tech, defense, and gas exports remain strong
If ceasefires hold, growth could accelerate to 5.5% next year.
War has hurt tourism and some sectors, but Israel’s private sector, skilled workforce, and demographics continue to support a solid rebound.
Are you surprised?