Israel’s economy prospers despite years of war, but prices worry voters

Despite three years of multi-front war in the Middle East, Israel’s economy is thriving, with a 2.9% GDP growth in 2025 and forecasts of 4% for 2026. The shekel has strengthened against the dollar, and the stock market has surged over 110%, with unemployment at 2.8% and inflation at 1.5%. The upcoming October 27 election focuses heavily on national security, with Netanyahu and Eisenkot competing, while Israel’s tech sector remains a key driver of economic resilience.