Israels economy prospers despite years of war, but prices worry voters

Image for article Israels economy prospers despite years of war, but prices worry voters
News Source : Al Jazeera English

News Summary

  • GDP grew 2.9 percent in 2025, picking up from a 1 percent expansion in 2024.
  • Bank of Israel has forecast 4 percent growth for the whole of 2026 and 5.5 percent growth in 2027.
  • Driving Israel’s striking economic resilience has been a booming tech sector largely insulated from its conflicts spanning Gaza, Lebanon, Syria, Iraq, Iran and Yemen.
  • Despite being on a war footing since October 2023, Israel has attracted record levels of investment in tech, the driver of about one-fifth of economic activity.
After three years of Israels multifront war in the Middle East, it would be no surprise if this months Knesset elections were taking place against the backdrop of an economy in dire straits.

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