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Macro EconomyMedium•16 February 2026•

1 min read

Israel's Economy Beats Expectations with 3.1% Growth in 2025

Electricity pylons and power lines connect to data centers with glowing blue lights, set against a US map background.

Israel's economy expanded by 3.1% in 2025, outperforming the Bank of Israel's earlier growth estimate of 2.8%. This rebound from a 1% growth rate in 2024 was primarily driven by a surge in investments, exports, and significant government spending. Notably, Israel's economic performance surpassed the OECD average of 1.7% and the United States' growth of approximately 2%. Looking ahead, the Bank of Israel forecasts a sharper acceleration in economic activity, with GDP expected to reach 5.2% in 2026. The realization of these projections remains contingent on the sustained stability of the current ceasefire. These robust figures signal economic resilience, providing a bullish outlook for the USD/ILS exchange rate and the TA-35 equity index.