Israel ranks first in projected economic growth for 2026 among advanced European economies, according to the International Monetary Fund's (IMF) World Economic Outlook report for October 2026.
According to the report, Israel's economy is expected to expand by 4.5% this year, the highest growth rate among the economies included in the IMF's Advanced Europe category. Malta follows with projected growth of 4.2%, while Denmark ranks third at 3.7%.
The figures show that the Advanced Europe group as a whole is expected to grow by just 1.3% in 2026, while the euro area is projected to expand by 1.1%.
The IMF estimates that Israel's economy grew by 3.5% in 2025 and forecasts further growth of 4.4% in 2027.
The report also projects that inflation in Israel will average 1.8% in 2026 and 2.0% in 2027, while unemployment is expected to stand at 3.1% and 3.2%, respectively.
Globally, the IMF forecasts economic growth of 3.1% in 2026 and 3.4% in 2027.
Finance Minister Bezalel Smotrich welcomed the forecast, stating: "The OECD's [sic] growth forecast is a badge of honor for Israel's economy and the citizens of Israel. Even in the face of complex challenges, we have proven that the Israeli economy is strong, dynamic, and leads the developed world."
Smotrich attributed the figures to the economic policies pursued by his ministry. "This historic figure, alongside the low deficit and international confidence reflected in foreign investments, is no coincidence - these are the result of responsible, measured, and determined economic policy," he said.
"We will continue to lead the economy toward growth, strengthen our citizens, and ensure a strong economic future for the State of Israel. We do not gamble with the future of the State of Israel - not even when it comes to the economy."