HaRav Shmuel Eliahu is Chief Rabbi of Tzfat
One of the miracles that has occurred for the people of Israel in recent years is a great economic miracle. Despite the enormous costs of war; despite the extensive spending to repair the destruction in the southern border communities and in the north; despite the seventy billion shekels spent on reserve duty for hundreds of thousands of soldiers for long periods of time; despite the damage to workplaces where employees have been absent for months; despite all the expenses related to the wounded and fallen soldiers; despite all the war expenditures amounting to tens of billions - the State of Israel is experiencing remarkable economic growth!
The country’s revenues have risen dramatically compared to every other nation not at war. Israel’s foreign currency reserves continue to grow. The State of Israel stands at record highs in every possible economic indicator. All this is in stark contrast to the forecasts of the credit-rating agencies, and contrary to the warnings of the Kaplan Street protesters who predicted economic collapse.
The Torah assures us: “He will love you and bless you and multiply you; He will bless the fruit of your womb and the fruit of your land” (Devarim 7:13).
Israel’s wealth is a Divine promise being fulfilled. The Torah connects the promise of prosperity with God’s love for His people:
“The Lord your God will keep with you the covenant and the mercy which He swore to your fathers. He will love you, bless you, and multiply you; He will bless the fruit of your womb and the fruit of your Land - your grain, your wine, and your oil, the offspring of your cattle and the flocks of your sheep - in the Land which He swore to your fathers to give you” (Ibid. 7:12-13).
This teaches that the economic miracle of the State of Israel carries profound spiritual significance.
Economic Blessing to the Patriarchs
God swore to bless Avraham with wealth at the binding of Isaac: “By Myself have I sworn, says the Lord… that I will surely bless you and greatly multiply your descendants”
(Bereshit: 22:16-17)
And indeed, God fulfilled this promise, as it says: “Avram was very rich in cattle, in silver, and in gold” (Bereshit: 13:2)
Later, at the end of his life, the Torah records: “Avraham was old, advanced in years, and the Lord had blessed Avraham in all things” (Bereshit: 24:1).
Isaac too was blessed with wealth: “Isaac sowed in that Land and reaped a hundredfold the same year; and the Lord blessed him. The man became great and continued to prosper until he became very great. He had flocks of sheep and herds of cattle and many servants, and the Philistines envied him” (Bereshit: 26:12-14).
Likewise Jacob: “The man became exceedingly prosperous, and he had large flocks, maidservants and menservants, camels and donkeys” (Bereshit: 30:43)
And the deeds of the fathers are a sign for the children.
Liberation from Foreign Rule
Wealth frees us from dependence on the nations. The Torah states:
“For the Lord your God will bless you as He has promised you, and you shall lend to many nations, but you shall not borrow; and you shall rule over many nations, but they shall not rule over you” (Devarim: 15:6). And also: “The Lord your God will set you high above all the nations of the earth. All these blessings shall come upon you and overtake you: Blessed shall you be in the city, and blessed shall you be in the field. Blessed shall be the fruit of your womb and the fruit of your Land and the fruit of your livestock, the increase of your cattle and the young of your flock. Blessed shall be your basket and your kneading bowl” (Devarim: 28:1-5).
Economic Calamity
Conversely, when there is economic hardship, it is a desecration of God’s Name. The nations then ask: How can it be that God does not protect His people or bestow upon them abundance and blessing?
When a plague of locusts struck the Land of Israel, the Prophet Yoel described the priests crying out: “Between the porch and the altar let the priests, the ministers of the Lord, weep, and say: ‘Spare Your people, O Lord, and do not make Your heritage a reproach, a byword among the nations. Why should they say among the peoples: Where is their God?’” (Joel 2:17).
A plague of locusts in Israel is a desecration of God’s Name. In contrast, today, our great economic success and prosperity are a Sanctification of His Name in the eyes of all the nations.
The Magnitude of the Miracle
To understand how much gratitude we owe to God, it is worth recalling that Israel’s national output rose over the past year from 583 billion dollars to 610 billion dollars - an increase of 27 billion dollars in just half a year, during wartime. There is nothing like this anywhere in the world.
The International Monetary Fund (IMF) forecasts that Israel’s growth will continue to accelerate, and that its GDP will soon reach 800 billion dollars annually, placing Israel among the wealthiest nations on earth.
Over $60,000 GDP per Capita in Israel
A country’s economic output is measured relative to its population. According to the IMF, Israel’s GDP per capita has risen to over $60,000. The Fund’s projections indicate that Israel’s economy will keep climbing in the coming years - to $64,000 per capita next year, and to $72,000 within five years. Both the Bank of Israel and the Ministry of Finance predict even higher figures.
Children Are a Blessing
To illustrate the scale of this growth, ten years ago Israel’s GDP per capita was about $35,000, similar to Japan’s. Since then, Japan’s economy has declined to $34,000 per capita, while Israel’s has soared to $60,000.
The reason lies in birth rates. Our sages taught that every child born brings blessing into the world. Israel’s natural population growth is the highest among wealthy nations in the OECD. Japan, by contrast, faces demographic collapse with an average of 1.2 children per woman, compared to nearly 3.2 Jewish children per woman in Israel. Hence Japan’s economic stagnation.
Israel Surpasses Europe
The IMF report for 2025 shows Israel’s growth rate exceeding that of European countries:
- Germany: 0.2%
- Italy: 0.5%
- Sweden: 0.7%
- France: 0.7%
- United States: 2%
- Israel: 2.5% - and this during wartime.
The low growth across Europe stems from negative birthrates - in countries that once powered the world’s economy. Today, Israel surpasses the major European economies in GDP per capita:
- Germany - $59,900
- United Kingdom - $56,600
- France - $48,900
- Italy - $43,160
- Spain - $38,040
- Turkey - $18,200
- Israel - over $60,000, and the gap between Israel and Europe is expected to widen steadily in the coming years.
The Gap with the Arab States
The disparity between Israel and its Arab neighbors is vast. In 1990, Iran’s GDP per capita was equal to Israel’s, about $13,000. Since then, Iran has fallen to $4,000 per year, while Israel has risen to $60,000.
Saudi Arabia fares somewhat better, though its wealth comes primarily from oil, not from innovation, labor, or investment. As a result, Saudi Arabia remains stagnant at $35,000 per capita.
Egypt’s economy is in decline, now around $3,000 per capita, down from $4,600 just two years ago. Its gas and oil fields have been depleted, and Red Sea shipping routes have been blocked by the Houthis. In short, the gates of heaven have closed for them.
It would be wise for Egypt to engage in serious soul-searching to understand why God is shutting off their spigots of fortune while constantly opening new ones for Israel. The same applies to Jordan, Lebanon, Syria, and Iraq.
Growth of America
Amid all this, we must also mention Israel’s loyal friend and supporter, the United States of America which stands, for the most part, on the side of Israel against the nations of Europe and the Arab world.
America’s GDP per capita now stands at $89,600. A decade ago it was $57,000. There is no doubt that America’s economic growth mirrors Israel’s and that their shared connection to God, the Five Books of Moshe, and the moral messages of the Prophets brings them both blessing and success.