Israel's economy has achieved the highest efficiency in the Middle East despite undergoing severe warfare for more than 22 months.
Israel's exceptional economic growth and stock market performance amid warfare reflect strong confidence from international investors, supported by government backing and the strength of the country's technology sector.
MAIN CONTENT
The Tel Aviv stock market recorded a gain of over 200% after the war and crisis in 2023.
Israel's economy is recovering, recording a GDP growth of 1% in 2024 and projected growth of up to 4.9% in 2026 according to OECD.
The technology sector accounts for 20% of GDP, making a significant contribution to development and attracting international investment.
How did Israel overcome war difficulties to maintain economic growth?
According to the official report from Tel Aviv Stock Exchange (TASE), although the stock market dropped 23% right when the war began in October 2023, by mid-2024 the value of TASE had increased by more than 200% compared to the early stages of the war. This is evidence of recovery and strong confidence from global investors.
The Israeli government has played an active role by increasing public spending, supporting the economy during periods of instability. This has contributed to a 1% increase in GDP and a 2% growth in some economic indicators in 2024. OECD forecasts continued growth at a rate of 4.9% projected for 2026, reflecting positive expectations from the international economic community.
Israel has demonstrated undeniable economic strength even amid prolonged conflict, attracting attention and trust from global investors.
CEO Avi Hasson, Startup Nation Central, 2024
How does the technology sector contribute to Israel's economic success?
The technology sector is the main driver of Israel's sustainable economic development. CEO Avi Hasson emphasized that about 20% of GDP and 56% of the country's export value comes from high-tech products and services. Government support for research, development, and innovation has created a favorable environment for technology startups to thrive.
Thanks to its diverse energy skills and advanced technological infrastructure, Israel has attracted international investors despite regional security instability. The number of new trading accounts in the stock market reached 161,000 in 2024, three times that of the previous year, indicating a positive increase in the participation of individual and institutional investors in the domestic financial market.
Israel's technology sector not only grows but also significantly impacts the global economy thanks to its innovative capabilities and strong support from the state.
Hadar Romano, Data & Information Manager TASE, 2025
How do changes in investor psychology and behavior amid warfare affect the Israeli market?
2023 was a year of significant instability, leading to a severe decline in the Israeli stock market. According to Hadar Romano, 2024 has seen a significant increase in the number of investors entering as stock prices are low, creating buying opportunities and boosting liquidity in the market.
Mr. Avi Hasson stated that international investors have adjusted their risk assessments regarding security and the Israeli economy, leading many investment funds to look towards this country in the long term. This reflects optimism about Israel's sustainable development potential, despite the complex regional dynamics.
Index Year 2023 Year 2024 Forecast 2026 GDP Growth -20% +1% +4.9% (OECD) Number of New Trading Accounts ~54,000 161,000 87,000 Contribution Rate of the Technology Sector to GDP Not published 20% 20% (maintained)
Frequently Asked Questions
How does Israel's economy grow amid warfare?
Despite suffering negative impacts in 2023, Israel's economy has recovered and started to grow again from 2024 with a GDP increase of about 1%, projected to reach 4.9% in 2026 according to OECD.
Why did the Israeli stock market surge after the crisis?
The recovery is driven by increased investor confidence, a surge in the number of new accounts opened, and government policies increasing public spending, leading the Tel Aviv stock market to rise more than 200% since the start of the war.
How does the technology sector contribute to Israel's economy?
This sector accounts for about 20% of GDP and more than half of export value, making it a crucial attraction for Israel to draw international investment during periods of economic instability.
What is the current participation rate of individual investors in the Israeli market?
In 2024, there were 161,000 new trading accounts opened, three times that of 2023, indicating a strong increase of individual and institutional investors in the domestic financial market.
What does OECD forecast for Israel's economy in the coming years?
OECD expects Israel's economy to develop steadily with a GDP growth rate of about 4.9% by 2026, reflecting positive expectations from the international community.
Source: https://tintucbitcoin.com/israel-chung-khoan-vuot-dinh-ky-luc/
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