Story perspectives
Post-War Recovery: Israel's Economy Faces Challenges Ahead
10/6/2025
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Story summary
- Ending the Israel-Hamas war could trigger rapid growth for Israeli households.
- Near term, the Tel Aviv Stock Exchange may rise as the shekel strengthens.
- Military spending at 330 billion shekels could push the deficit to 6% of GDP.
- War caused 4% contraction and an 8.1% GDP deficit, highest since 2008.
- Exporters report 76% damage as welfare funding is set to be cut.
