Israel’s Economy and Financial Markets are Booming — Even as Conflict Rages in the Middle East

The IMF estimates that Israel’s economy will grow by 3.5% this year, compared to 2.3% for the United States and 1.3% for the EU. It also means Israel’s GDP is forecast to outperform all G7 countries in 2026. Israel has a much lower debt-to-GDP ratio than many other developed countries, with the IMF forecasting a rate of 69.8% this year. Although a slight uptick from 2025, it’s much lower than the G7′s rate of 123.7%. The country’s unemployment rate also edged marginally higher to reach 3.2% in March, but falls below America’s 4.3% unemployment rate and the euro zone’s 6.2%....