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Israel's Economy Rebounds with 3.1% Growth in 2025

2/17/2026

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Story summary
  • Israel's economy grew 3.1% in 2025, signaling a recovery after a two-year conflict that severely hit activity.
  • GDP per capita has returned to pre-war levels.
  • In 2024, growth was only 1%, the slowest in over two decades.
  • Growth was supported by an 8.1% rise in gross fixed capital formation and a 6.1% increase in exports.
  • The central bank expects 5.2% growth in 2026, contingent on stabilizing conditions.