Israeli economy surprises markets – analysis
Despite social upheaval and armed conflict over three years, the Israeli economy shows resilience: GDP grew by 10%, the TA-125 index surged by 120%. Industrial damage amounted to 177 billion shekels, public debt reached 70% of GDP, but was offset by hi-tech, defense, and investments. The dollar strengthened, then fell below pre-war levels.
The Israeli economy demonstrates paradoxical resilience amid three years of armed conflict and social upheaval. According to Calcalist, the country's GDP grew by about 10%, and the TA-125 index of the Tel Aviv Stock Exchange surged by 120%, outpacing many global markets. Meanwhile, the Bank of Israel recorded industrial damage of 177 billion shekels, and public debt reached 70% of GDP. Negative consequences were offset by hi-tech, the defense industry, and an influx of investments. The domestic securities market set new records, banks and insurance companies reported increased profitability. In the currency market, the dollar initially rose sharply, but then the shekel strengthened, and the dollar fell below pre-war levels. The regulator ended emergency interventions and moved to systematic stabilization.