06/06/2026
Israel's economy is expected to rebound strongly after weathering the impact of the wars with Iran and Hezbollah, with the Organization for Economic Co-operation and Development (OECD) forecasting growth of 5.6% in 2027.
In its latest World Economic Outlook, released Wednesday, the OECD projected Israeli economic growth of 3.3% in 2026 before accelerating sharply the following year.
The organization attributed the weaker 2026 growth forecast to the economic effects of the ongoing conflicts with Iran and its terrorist proxy Hezbollah in Lebanon.
The OECD also expects Israel's budget deficit to widen to 5.3% of GDP in 2026 due to rising war costs before narrowing to 4.2% in 2027. The report forecasts that Israel's debt-to-GDP ratio will rise to 71% in 2026 before easing slightly to 70% the following year.