The story of Israel’s economy in 2025 is one that blends contradiction with conviction. On the one hand, the country faces an ongoing war, international boycotts, rising defense spending, and a strained fiscal environment. On the other, its financial markets are surging, the shekel is strengthening, and GDP growth remains robust compared to global peers. Israel, once again, proves to be a nation where adversity fuels resilience rather than collapse.

A Nation Under Fire, Yet Growing

The first quarter of 2025 stunned many analysts. Israel posted GDP growth of 3.7% (annualized), and the Ministry of Finance projects a full-year growth of 3.1%. This performance is remarkable when placed against the backdrop of war, global economic slowdown, and fiscal stress. Many advanced economies are strug

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