Ministry of Finance Reports 3.2% GDP Growth and Historic $26 Billion Foreign Investment

On the eve of Rosh Hashanah, the Ministry of Finance presented a highly encouraging economic overview, indicating a robust and stable economy despite ongoing security and macroeconomic challenges.

According to the official data, Israel's Gross Domestic Product (GDP) recorded an impressive growth of 3.2%. This was accompanied by a historic 78% surge in foreign direct investments, which reached a staggering total of $26 billion. Concurrently, the Tel Aviv Stock Exchange demonstrated strong performance, with the TA-125 index rising by 35%, while the Israeli Shekel strengthened by 11% against the US Dollar over the past year.

These positive indicators are also reflected in consumer finances, with inflation dropping significantly to just 1.5%, placing it at the lower bound of the Bank of Israel's target range. The state budget deficit decreased to 3.3%, and Israel's debt-to-GDP ratio stands at 67.9%, a figure substantially lower than the average among OECD countries. Furthermore, the risk premium of the Israeli economy plummeted by 29%, signaling a return of international investor confidence and reducing the state's debt financing costs.

Labor Market and High-Tech Resilience

The domestic labor market continues to show remarkable stability, with an exceptionally low unemployment rate of 3.3%. Israel's high-tech sector, the primary engine of the economy, continues to lead with a surge of over 53% in capital raising.

Israel remains firmly positioned at the global forefront of Artificial Intelligence (AI), ranking third in commercialization and sixth in development. International credit rating agencies have maintained Israel's credit rating at a high level, describing a growing economy that remains significantly stronger than most Western nations.