Israel is fighting a long and expensive war. It is facing mounting international hostility, diplomatic pressure and an almost daily campaign to isolate the Jewish state economically and politically.
And yet, the economy is doing something rather inconvenient for its critics: it is growing.
Israel’s high-tech sector remained one of the strongest in the world in 2025, recording $85 billion in exports, $84 billion in exits and nearly $15 billion in capital raised, according to a new Israel Innovation Authority report. High-tech accounted for roughly half of Israel’s total economic growth that year, contributing 1.44 percentage points out of GDP growth of 2.9%.
In other words, while much of the world was busy issuing warnings, condemnations and boycott threats, investors continued placing serious money on Israeli innovation.
The sector’s output rose by 8.2%, while capital raised increased by 30%. Israel also maintained its position as the largest capital-raising hub outside the United States and the fourth-largest globally. Output per employee reached approximately 827,000 shekels annually, far above the national average.
There are warning signs. The same report noted the first decline in a decade in the...
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