Israeli economy grows 3.2% as foreign investment surges, finance ministry says
Israel’s economy continued to grow over the past year despite the ongoing war and economic uncertainty, with GDP expanding 3.2% in the first half of 2026 compared with the second half of 2025, according to data released by the Finance Ministry ahead of Rosh Hashanah.
Foreign investment surged 78% to a record $26 billion in 2025, while inflation fell from 2.5% to 1.5%.
Israel’s high-tech sector remained a major driver of growth, with capital raised increasing 53.6% in the first half of 2026 compared with the same period last year. The ministry projects nominal GDP per capita will reach approximately $70,000 in 2026, while Israel ranks third globally in AI commercialization, sixth in development and seventh in research.
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