Israel economy expands by 3.1 percent in 2025 as export growth accelerates

Israel's economy grew 3.1 percent in 2025 following a surge in exports and investment. The expansion outpaced the OECD average despite ongoing regional conflict.

Official data released today shows that the economy of Israel ILIL grew by 3.1% in 2025, representing a significant rebound from the 1% growth rate recorded in 2024. This economic expansion occurred during a second consecutive year of war in Gaza involving Hamas. The annual growth rate outpaced the OECD average of 1.7% as well as the 2% growth seen in the United States USUS.
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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