“Israel’s economy did not escape the war; it learned to operate through it”, Firstpost, 09 Oct 2026.
“Three years ago, Israel’s enemies attacked more than its people and territory. They attacked the premise behind its prosperity: that a small state with few natural resources could compensate through talent, technology and access to the world. After October 7, 2023, reservists left offices for military units, flights were cancelled, construction sites emptied and investors confronted a question no spreadsheet could answer. Could the “Startup Nation” function through a long war on several fronts?
The easy answer was no. It was also wrong.
Israel did not escape the economic cost of war. Defence expenditure surged, public debt climbed and tourism and construction took a severe hit. Thousands of technology workers served extended periods in the reserves. Yet by 2025, the sector most exposed to global confidence was producing numbers that would have looked exceptional even in peacetime.
According to the Israel Innovation Authority’s 2026 status report, high-tech output rose by 8.2 per cent in real terms in 2025 to NIS 352 billion. The sector reached 18.3 per cent of GDP and contributed roughly half of the country’s economic growth. Exports touched $85 billion, or 58 per cent of Israel’s total exports. Israeli technology companies raised about $14.6 billion, 30 per cent more than in 2024………..”
Read the full article at Firstpost.
