Israel Economy

Middle East, North Africa, Afghanistan & Pakistan · High income

Updated 17 Oct 2026

GDP Annual Growth Rate in Israel increased to 7.34 percent in Q2 2026 from 2.63 percent in Q1 2026. Inflation Rate in Israel decreased to 1.54 percent in Aug 2026 from 1.55 percent in Jul 2026.

GDP Growth
7.3%
▲ +4.7 pp Q2 2026 · OECD
Inflation Rate
1.5%
▼ −0.0 pp Aug 2026 · OECD
Interest Rate
3.25%
▼ −0.25 pp Sep 2026 · BIS
Unemployment
2.8%
▼ −0.3 pp Aug 2026 · OECD

GDP Growth Rate

Real GDP, annual % change. Hatched bars are IMF projections.

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Inflation vs Interest Rate

Monthly data, %. Source: OECD, BIS.

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Key Highlights

  • Real GDP grew 7.3% in Q2 2026 (previous year: 2.6%).
  • Consumer price inflation was 1.5% in Aug 2026, compared with 1.5% in the previous period.
  • The central bank policy rate stood at 3.25% at the end of Sep 2026 (previous: 3.50%).
  • The unemployment rate was 2.8% in Aug 2026 (previous: 3.1%).
  • General government debt was 67.9% of GDP in 2025.
  • The IMF projects real GDP growth of 4.5% for 2026 (World Economic Outlook projection).

Main Indicators

IndicatorLastPreviousPeriodTrendSource
GDP Annual Growth Rate7.3%2.6%Q2 2026OECD
Interest Rate3.25%3.50%Sep 2026BIS
Inflation Rate1.5%1.5%Aug 2026OECD
Unemployment Rate2.8%3.1%Aug 2026OECD
Government Debt to GDP67.9%67.7%2025IMF
Balance of Trade$13.0B$13.1B2025World Bank
Current Account to GDP2.0%3.0%2025World Bank
GDP$610.8B$542.3B2025World Bank

GDP

IndicatorLastPreviousPeriodTrendSource
GDP per Capita$60,337$54,2172025World Bank
GDP per Capita PPP$59,717$57,2782025World Bank
Gross National Income$602.2B$539.3B2025World Bank
GDP from Agriculture1.3%1.4%2024World Bank
GDP from Industry17.2%18.1%2024World Bank
GDP from Manufacturing11.2%11.5%2024World Bank
GDP from Services72.8%72.5%2024World Bank
Gross Fixed Capital Formation23.8%23.1%2025World Bank
Household Consumption to GDP48.6%48.6%2025World Bank
GDP Growth Rate3.53%-0.43%Q2 2026OECD

Labour

IndicatorLastPreviousPeriodTrendSource
Youth Unemployment Rate6.0%6.2%2025World Bank
Labour Force Participation Rate65.5%65.5%2025World Bank
Employment Rate63.2%63.1%2025World Bank
Population10.12M10.00M2025World Bank

Prices

IndicatorLastPreviousPeriodTrendSource
GDP Deflator Growth2.1%5.6%2025World Bank
Core Inflation Rate1.3%1.6%Aug 2026OECD
Inflation Rate MoM0.67%0.29%Aug 2026OECD
Food Inflation0.6%1.1%Aug 2026OECD

Money

IndicatorLastPreviousPeriodTrendSource
Lending Rate2.96%3.10%2022World Bank
Deposit Interest Rate0.44%0.44%2022World Bank
Broad Money Growth6.4%8.1%2025World Bank
Foreign Exchange Reserves$229.5B$214.5B2025World Bank
Private Debt to GDP116.5%115.0%Q1 2026BIS
Government Bond 10Y Yield4.08%3.93%Sep 2026OECD
Interbank Rate3.12%3.31%Sep 2026OECD

Trade

IndicatorLastPreviousPeriodTrendSource
Current Account$12.3B$16.3B2025World Bank
Exports$168.3B$154.0B2025World Bank
Imports$155.3B$140.9B2025World Bank
Foreign Direct Investment$26.24B$14.78B2025World Bank
Remittances$1.16B$0.95B2025World Bank
Terms of Trade93.392.12024World Bank
Tourist Arrivals4.91M4.39M2019World Bank
Tourism Revenues$2.66B$8.46B2020World Bank

Government

IndicatorLastPreviousPeriodTrendSource
Government Budget-5.2%-8.1%2025IMF
Government Revenues to GDP35.5%34.3%2024IMF
Government Spending to GDP43.8%39.3%2024IMF
Tax Revenue to GDP23.2%22.1%2024World Bank
Military Expenditure7.81%8.47%2025World Bank

Business

IndicatorLastPreviousPeriodTrendSource
Industrial Production15.5%29.0%Jul 2026OECD
Business Confidence101.67101.65Aug 2026OECD

Consumer

IndicatorLastPreviousPeriodTrendSource
Retail Sales YoY1.2%18.6%Jul 2026OECD
Consumer Confidence98.3098.45Aug 2026OECD

Housing

IndicatorLastPreviousPeriodTrendSource
Residential Property Prices-1.4%-0.3%Q1 2026BIS

Israel economy explained in simple words

Size of the economy

The economy of Israel produced goods and services worth $610.8B in 2025, making it the 27th largest of 214 economies with data.

With a population of about 10.1 million, GDP per person is $60,337. The World Bank classifies Israel as a “high income” economy.

Economic growth

Real GDP grew 7.3% in 2026, compared with world growth of 3.5% (IMF).

Over the last 10 years growth averaged 2.9% a year, ranging from -1.4% to 7.3%.

The IMF projects growth of 4.5% in 2026.

Prices and interest rates

Consumer price inflation was 1.5% in Aug 2026.

The central bank policy rate was 3.25% at the end of Sep 2026.

The difference between the two — the real interest rate — is about 1.71%.

Jobs

The unemployment rate was 2.8% in Aug 2026 (world: 4.8%).

About 65.5% of people aged 15 and over are in the labour force (working or looking for work).

Government finances

General government debt was 67.9% of GDP in 2025, compared with a median of 52.9% across 191 economies.

The government budget balance was -5.2% of GDP (2025) — a deficit, meaning spending exceeded revenue.

Trade and external position

The current account was 2.0% of GDP in 2025 — a surplus with the rest of the world.

Exports of goods and services were $168.3B and imports $155.3B.

Foreign exchange reserves (including gold) stood at $229.5B.

Structure of the economy

By sector, value added is split roughly as: services 72.8%, industry 17.2%, agriculture 1.3% of GDP.

How to read this page

The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.

The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.

Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.

Frequently asked questions

What is the GDP growth rate of Israel?
The latest GDP growth rate of Israel is 7.3% (Q2 2026), compared with 2.6% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the inflation rate of Israel?
The latest inflation rate of Israel is 1.5% (Aug 2026), compared with 1.5% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the interest rate of Israel?
The latest interest rate of Israel is 3.25% (Sep 2026), compared with 3.50% in the previous period. Source: Bank for International Settlements (BIS).
What is the unemployment rate of Israel?
The latest unemployment rate of Israel is 2.8% (Aug 2026), compared with 3.1% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the government debt to GDP ratio of Israel?
The latest government debt to GDP ratio of Israel is 67.9% (2025), compared with 67.7% in the previous period. Source: IMF — World Economic Outlook.

Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.