Israel gdp

Debt, defense, and disruption: The true cost of Israel's multi-front war - analysis

A mid-2026 analysis of Israel’s war-strained economy

|ByGALI INGBER
Israel was the ultimate Start-up Nation. However, following the events of October 7, 2023, and the multi-front wars that followed, including on the northern front (pictured), the focus has shifted from simple growth to a desperate fight for stability.
Israeli prime minister Benjamin Netanyahu and Minister of Finance Bezalel Smotrich attend a discussion and a vote on the state budget at the assembly hall of the Israeli parliament in Jerusalem, February 7, 2024.

Israel’s debt-to-GDP ratio rose to 68.6% in 2025 due to war, rebuilding expenses - Finance Min.

"The upward trend in the debt-to-GDP ratio stems from the security spending required following the war," Finance Minister Bezalel Smotrich said.

|ByREUTERS, JERUSALEM POST STAFF
The Housing Market in Israel.

Taub Center 2025 Report: Rising defense debt and low productivity threaten Israel’s 2026 growth

After two years of war, Israelis are facing mounting economic pressures. A new report by the Taub Center warns country must boost productivity and invest in human capital

|ByANNA AHRONHEIM
Israeli Finance Minister Bezalel Smotrich attends an inauguration event for Israel's new light rail line for the Tel Aviv metropolitan area, in Petah Tikva, Israel, August 17, 2023.

Israel plans to bring budget deficit below 3% of GDP for 2026-28

Hurt by the war, growth was some 1% in 2024 and is projected to grow 3-3.5% this year.

|BySTEVEN SCHEER/ REUTERS

Finance Committee to vote on executive-pay bill

The bill would put a series of regulations in place for executives making over NIS 3.5 million a year.

FEBRUARY 15, 2016ByNIV ELIS
Moshe Gafni

OECD: Israel fourth in foreign direct investment

For Israel, the OECD accounted for the lion’s share of FDI inflows, with almost $3b. in 2012.

AUGUST 20, 2014ByNIV ELIS
Investment graph