The Ministry of Finance released a series of economic indicators ahead of Rosh Hashanah 5787, saying the figures demonstrate the resilience and continued growth of the Israeli economy despite the challenges and uncertainty of the past year and those preceding it.
According to the data, Israel’s economy has improved across a range of significant indicators since the eve of Rosh Hashanah 5786, reflecting continued confidence among investors in Israel and abroad.
Gross domestic product grew by 3.2% in the first half of 2026 compared with the second half of 2025. At the same time, foreign investment in Israel surged by a historic 78%, reaching $26 billion in 2025, with the trend continuing during the first half of 2026.
Inflation declined from 2.5% on the eve of last Rosh Hashanah to 1.5% today, placing it at the lower end of the target range.
Israel’s stock market also posted significant gains, with the TA-125 Index rising 35% over the past year. The shekel, meanwhile, strengthened by 11% against the US dollar.
The budget deficit declined from 4.7% to 3.3% over the past year, compared with a deficit target of 4.9% for 2026. The Finance Ministry noted, however, that the deficit could increase slightly in the coming months.
Israel’s debt-to-GDP ratio currently stands at 67.9%, significantly below the OECD average of 111%. International credit rating agencies S&P and Fitch have maintained Israel’s credit rating at A, while Moody’s rates the country at Baa1.
Another indication of confidence in the Israeli economy is a 29% decline in Israel’s risk premium, as measured by credit default swaps (CDS), bringing it close to the level recorded on the eve of the war. Yields on 10-year government bonds have fallen by 7.2% this year, reducing the cost of raising debt for the State of Israel.
The labor market has also remained stable. Unemployment stands at 3.3%, compared with an average of 4.9% among OECD countries. The labor force participation rate among Israelis aged 15 and older stands at 62.5%, compared with an OECD average of 61%.
Among those aged 15 to 64, Israel’s employment rate stands at 71%, compared with an OECD average of 74%. Overall, the labor market has remained largely unchanged from the previous year.
Israel has also continued to strengthen its standing as a global technological powerhouse in the field of artificial intelligence. According to the data, Israel ranks third worldwide in AI commercialization, sixth in AI development and seventh in AI research among 83 countries.
The high-tech sector continues to serve as a major engine of the Israeli economy. Capital raised by the sector increased by 53.6% in the first half of 2026 compared with the corresponding period in 2025.
Israel’s nominal GDP per capita is projected to reach approximately $70,000 in 2026, placing the country among the world’s leading economies in GDP per capita.
When adjusted for differences in price levels, Israel’s GDP per capita in purchasing power parity terms stands at approximately $60,000 - around $4,000 below the OECD average.