Report: Israel’s economy expanded 3.1% in 2025, outpacing the Organisation for Economic Co-operation and Development (OECD) average and marking a sharp rebound from the war-impacted growth of the previous year. Driven by strong business output, renewed investment, and a surge in exports and tourism, the recovery underscores the resilience of Israel’s economy - even as elevated defense costs and cautious consumer spending continue to pose long-term fiscal challenges.

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