Israel Post-War Economy to Grow Further in 2026 After 3.1% Gain in 2025

Israeli national flags flutter near office towers at a business park also housing high tech companies, at Ofer Park in Petah Tikva, Israel, Aug. 27, 2020. Photo: REUTERS/Ronen Zvulun

Israel‘s economy grew 3.1% in 2025, official data showed on Monday, rebounding from a 1% pace in 2024, with growth expected to accelerate sharply as long as a fragile Gaza ceasefire holds.

Growth last year was led by a 7.1% rise in investment and a 5.9% gain in exports, along with a modest uptick in consumer spending.