Israel's economy grows 3.1% in 2025; economists see continued recovery

Israel’s economy expanded 3.1% in 2025, rebounding from growth of about 1% the previous year, as investment and exports picked up and heavy government spending during the Gaza war bolstered activity. Official data released on Monday showed the recovery exceeded expectations and could gather pace, provided a fragile ceasefire holds. The expansion outperformed the average growth rate of advanced economies, with output rising faster than the OECD average of 1.7% and the roughly 2% growth recorded in the United States. It also beat the Bank of Israel’s earlier estimate of 2.8%, with the central bank forecasting a sharper acceleration to 5.2% this year. Per capita economic growth stood at 1.7% in 2025, reflecting a modest improvement in living standards after…