Israel reports strong economic growth of 3.1 percent for 2025 following Gaza ceasefire

Israel's economy grew 3.1 percent in 2025 as post-war recovery took hold. Growth is expected to reach 5.2 percent in 2026 if the current ceasefire holds.

Insights:
Official data released today shows that the economy of Israel ILIL expanded by 3.1% in 2025, signaling a robust post-war recovery. This growth marks a significant acceleration from the 1% expansion recorded in 2024. The expansion was underpinned by a 7.1% rise in investment and a 5.9% increase in exports, outperforming growth rates seen in the United States USUS and across the OECD.
Destroyed buildings in Gaza, as seen from Israel, January 20, 2026. REUTERS/Amir Cohen
Destroyed buildings in Gaza, as seen from Israel, January 20, 2026. REUTERS/Amir Cohen
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