Israel’s economy prospers despite years of war, but prices worry voters
Summary
Israel’s economy has grown strongly despite ongoing conflicts since 2023. Key sectors like technology and foreign investment have helped boost economic growth, while election debates focus mainly on national security.Key Facts
- Israel’s GDP grew 2.9% in 2025 and 3.2% in the first half of 2026.
- The Bank of Israel predicts 4% growth in 2026 and 5.5% in 2027.
- The Israeli shekel reached a 30-year high against the US dollar in May 2026.
- Unemployment is low at 2.8%, and inflation is moderate at 1.5%.
- Israel’s tech sector, especially in cybersecurity and artificial intelligence, attracts record foreign investment.
- US companies like Alphabet and Palo Alto Networks made large acquisitions of Israeli tech firms.
- Military spending due to conflicts has cost Israel about $114.6 billion so far.
- Prime Minister Netanyahu and other leaders focus on security issues in the October 27 elections.
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