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Israel economy to grow 3.3% to 3.8% in 2026, depends on war length, finance ministry says

ReutersMar 30, 2026 8:10 AM

- Israel's economy is expected to grow 3.3% to 3.8% in 2026 depending on how long fighting continues on the various fronts, such as in Iran and southern Lebanon, the Finance Ministry said on Monday.

Growth is forecast at 5.3% to 6.1% in 2027, the ministry said.

Dented by the war with Hamas in Gaza, Israel's economy grew 2.9% in 2025. In the wake ⁠of ​a Gaza ceasefire last October, growth ​was initially projected at more than 5% in 2026.

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