OECD: Israel economy to grow despite war risks
The OECD projects that Israel's economy will grow by 3.3% in 2026 and 5.6% in 2027 despite ongoing regional conflict. However, the report warns that high defense spending and a widening budget deficit pose significant risks to this recovery.
Why it matters
Provides an economic outlook for a conflict-affected nation, highlighting the tension between military expenditure and fiscal stability.
Israel News OECD: Israel economy to grow despite war risks Organization forecasts economy will expand 3.3% in 2026 and 5.6% in 2027, but warns against high defense spending, deficit and renewed conflict. JNS Staff Email Copy Link copied Print Republish An electronic board displaying market data outside the Tel Aviv Stock Exchange, April 30, 2026. Photo by Miriam Alster/Flash90. (Jun. 4, 2026 / JNS) The OECD expects Israel’s war-hit economy to grow 3.3% in 2026 and accelerate to 5.6% in 2027, but warns that conflict risks and a swelling deficit could undermine the recovery.
Reports on institutional economic forecasts without injecting partisan commentary.
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