In 2025, Israel ranked among the most powerful economies in the world. In an international comparison of leading economic nations, the country placed in the top three. This was the conclusion reached by the UK business magazine The Economist, which has evaluated global economies for several years based on key macroeconomic indicators—from economic growth and inflation to labor market stability and capital market performance.

Particularly remarkable was the starting point of this development. The high ranking followed the crisis year of 2023, which had placed enormous strain on Israel economically, politically, and socially. Despite war, domestic political tensions, and a difficult international environment, the country quickly regained its economic dynamism, according to the analysis. Measured in local currency, hardly any other economy showed comparably strong performance over the course of 2025.

Financial markets

This strength was especially evident in the financial markets. The share price of Bank Leumi, Israel’s most valuable publicly listed company, rose by around 70 percent within one year. Overall, the Israeli stock market significantly outperformed many international benchmark markets—a signal...

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