Israel economy projected to reach $719.85 billion GDP by 2026

Projections from the International Monetary Fund (IMF) indicate that Israel's nominal GDP is expected to reach $719.85 billion in 2026, representing a growth rate of 3.5%. This follows a period of slower growth in 2024, where expansion was limited to 1% before a post-conflict rebound. The economy is characterized by high research and development intensity, ranking as a leader within the OECD, and a significant defense budget that has reached 9% of GDP.

In a separate assessment regarding 2025 performance, The Economist ranked Israel as one of the three most high-performing economies among 36 studied, placing third behind Portugal and Ireland. This ranking was based on five key indicators: inflation, consumer price breadth, growth, employment, and stock market performance, with the Tel Aviv Stock Exchange contributing significantly to the result. Prime Minister Benjamin Netanyahu attributed this economic resilience to free-market policies.