After two years of war, Israel faces economic headwinds

Despite ongoing war and political isolation, Israel’s economy has shown surprising resilience. The TA-125 stock index has rebounded to record highs, and GDP growth is forecast to rise, though war costs have reached nearly $89 billion. A brain drain in the tech sector, rising debt, and growing international backlash — including EU trade threats and US public opinion turning against further aid — now pose serious long-term risks.