Français
Español
English
Portuguese
“The Economist” compared the economies of 37 countries based on stock market performance, inflation, unemployment, and fiscal deficits.
By Shula Rosen
Despite the ongoing war on multiple fronts and financial headwinds, The Economist rated Israel’s economy as the sixth-strongest in 2024.
The financial publication compared the economies of 37 countries based on stock market performance, inflation, unemployment, and fiscal deficits.
Israel ranked sixth out of the 37 countries, with the number one spot claimed by Spain, with which Israel shared fourth place two years ago. The countries in the second through the fifth spots were, consecutively, Greece, Italy, Ireland, and Denmark.
Robust macroeconomic numbers, low unemployment, and strong stock market performance contributed to Israel’s strong showing.
The Economist measured growth year-over-year, from the fourth quarter of 2023 to the fourth quarter of 2024, during which Israel posted a 6.7% growth rate. This dramatic growth was driven by signs of recovery in Israel’s economy following the shock of October 7, 2023, and the start of the war.
The Tel Aviv 125 stock index has outperformed the S&P 500, rising 28.5% compared to the S&P’s 24.3%.
Confidence in the local economy was reflected in an increase in inward investment, reaching $11.5 billion—the highest quarterly figure since 2021.
Israel also enjoys a healthy trade surplus. Between the fourth quarter of 2023 and the third quarter of 2024, a cumulative surplus of $24.8 billion was recorded, compared to $19.5 billion before the war.
The shekel has appreciated by 5% against the dollar since before the war. On October 6, 2023, the shekel-dollar exchange rate was NIS 3.863/$. Today’s rate is NIS 3.65/$. According to some economists, the foreign exchange market is pricing in a risk premium, suggesting the shekel could rise further.
Although Israel’s economic resilience is impressive, concerns remain. Credit rating agencies have predicted that it may be challenging for Israel to return to pre-war growth rates.
Another concern is Israel’s deficit, which currently stands at 7.5% of GDP.
However, with strong investment and consumption, as well as robust growth, Israel’s economy may be able to weather these challenges.
Keep Israeli Soldiers Warm - Send Winter Jackets!
We are honored to thank the young men and women of the IDF who risk their lives every day to defend the citizens of Israel.
Join us in sending winter care packages and personal notes of support to Israeli soldiers who are out in the cold all day.
Warm up a soldier's heart with essential winter wear including fleece jackets, hats, gloves and more. Keep an entire unit warm!
THE SOLDIERS REALLY APPRECIATE YOUR LOVE AND CONCERN!
