Israel projects 3.3 percent growth and approves budget

The Finance Ministry of Israel has released updated economic forecasts for 2026, projecting growth between 3.3% and 3.8%. These figures are heavily contingent on the duration of ongoing military engagements with Iran and Hezbollah forces in southern Lebanon.

Under the most optimistic scenario, the ministry suggests growth could reach 3.8% if the conflict with Iran concludes by mid-April and fighting in Lebanon ends by the close of that month. Conversely, a more prolonged conflict—lasting until late April with Iran and through June with Hezbollah—would likely see growth tempered to 3.3%.