Israeli exports reach almost $150 billion in 2024 despite ongoing war

Israel, an export-oriented economy, successfully exported goods and services worth nearly $150 billion in 2024, according to the Israel Export Institute. This accounts for approximately 30% of the country’s total Gross Domestic Product (GDP), which stands at around $500 billion. The strong export performance came despite the ongoing war with Iran and its regional terrorist proxies. Moreover, the 2024 export figures were only one percent lower than those of 2023 and still contributed one percent to Israel’s overall economic growth.

“When rockets are flying and the world questions Israel’s stability, we keep doing what we do best: connecting Israel to the world,” Israel Export Institute chairman Avi Balashnikov stated. Every crisis brings opportunity, and our exporters prove the Israeli spirit every day,” the chairman added with characteristic Israeli resilience and optimism. 

Following the Hamas massacre on Oct. 7, 2023, the Israeli economy contracted with 20% in the subsequent quarter, as the attack had a profound negative impact on the country’s economic activity.

The Israeli economy has faced multiple challenges during the past 22 months of war. International credit agencies like S&P Global downgraded Israel’s credit rating due to concerns that the volatile security situation would have a growing negative impact on the Israeli economy. 

Furthermore, the Bank of Israel Governor Amir Yaron estimated in June 2024 that the Gaza War would likely cost the Israeli economy some $67 billion in military and civilian expenses during the period 2023 to 2025. 

However, the Israeli economy quickly showed signs of recovery with an annualize growth rate of 3.8% during the third quarter of 2024. The Israeli recovery in late 2024 was particularly impressive as it coincided with growing military confrontations on several fronts, including Hezbollah in Lebanon and the Iranian regime. 

While the Gaza War has lasted for 22 months with no immediate end in sight, the Bank of Israel has forecasted that Israel’s economic activity will increase by 3.5 percent in 2025 and 4 percent in 2026. The figures are based on the assumption that the current military operations will be contained and not expand any further. 

While the Israeli tech industry constitutes only some 10% of the total work force, it contributes with more than 50% of the country’s total export. The Israel Export Institute reported that the tech-related service exports increased by 3% in 2024 and with additional 10% growth during the first three months of 2025. 

Balashnikov noted that trade delegations from Asia, Europe, Africa and beyond have been coming to Israel to seize business opportunities throughout most of the ongoing Gaza War. The chairman stressed that “investing in Israel isn’t charity; it’s a smart economic decision backed by data.”

Looking ahead, the export institute is upbeat and seeks to revive it “Gateway to Africa” business initiative that was put on hold during the first months of the war. Despite many current challenges and boycott calls against the Jewish state, the Israeli export industry has set an ambitious goal: reaching annual exports of over $200 billion within the next five years.