The Sacks family from Australia arrives in Israel on January 1, 2026. (Immigration and Absorption Ministry)
Steve Ornstein: Israel in 2026: A Beacon of Economic and Social Resilience
As we step into 2026, Israel emerges from recent challenges stronger than ever, showcasing remarkable economic vitality and social cohesion. Despite ongoing regional tensions, the nation has not only stabilized but thrived, drawing on its innovative spirit, strategic advancements, and unbreakable community bonds. This blog explores the positive currents shaping Israel’s landscape today, with a focus on its robust economy and enduring social stability.
Economic Boom: Innovation and Growth Amid Adversity
Even in wartime, Israel’s economy has defied expectations, with GDP growth outstripping most EU countries and stocks reaching record highs.
This resilience stems from a shift toward a sustainable model, bolstered by U.S. support and innovative defense tech, ensuring stability for investors.
Israel’s economy in 2026 is a story of rebound and record-breaking performance. After navigating wartime strains, the country has seen investor confidence soar, with high-tech sectors leading the charge. The Tel Aviv Stock Exchange’s TA-35 index climbed an impressive 53% in 2025, driven by renewed local and foreign investments following ceasefires and reduced security risks.
This places Israel third among the world’s best-performing economies for that year, according to The Economist, highlighting its outperformance even during conflict.
Key drivers include massive energy deals, such as the $35 billion, 18-year natural gas export agreement with Egypt—the largest in Israel’s history—which is set to boost production by 30% and fuel long-term growth.
International forecasts are optimistic: The OECD projects 5.5% GDP growth for 2026, building on 3.4% in 2025, with expectations of even higher rates in 2027, surpassing long-term trends.
S&P Global has revised Israel’s credit outlook to “stable,” affirming its A rating and signaling fiscal resilience, with government deficits expected to narrow to 4.8% of GDP this year.
Banks echo this positivity, predicting moderating inflation, a stable shekel, and recovery in sectors like finance, defense, and energy.
Unemployment remains low, foreign direct investment has rebounded, and the shekel has appreciated nearly 20% against the U.S. dollar since the start of recent conflicts.
Israel’s tech ecosystem continues to attract global players, with universities churning out groundbreaking research in science and medicine, positioning the nation as an energy superpower exporting gas to Egypt, Jordan, and soon Europe.
Even in wartime, Israel’s economy has defied expectations, with GDP growth outstripping most EU countries and stocks reaching record highs.
This resilience stems from a shift toward a sustainable model, bolstered by U.S. support and innovative defense tech, ensuring stability for investors.
Social Stability: Unity, Resilience, and a Thriving Society
On the social front, Israel in 2026 radiates strength through its people’s unwavering solidarity and optimism. Over 62% of Israelis report a strong sense of social cohesion, a testament to the nation’s ability to unite amid adversity.
Strong population growth, coupled with diverse ethnic and ideological harmony on core issues, underscores a society that’s not just enduring but flourishing.
Beaches, hotels, restaurants, and theaters are bustling, reflecting a return to vibrant normalcy.
Israel ranks highly in global happiness studies, thanks to universal healthcare, strong labor unions, and effective income redistribution—social policies that promote equity and well-being.
The Jewish community enters 2026 with renewed determination, as post-October 7 surges in synagogue attendance, education, and cultural engagement show no signs of waning.
Tourism is rebounding too, with new flights, hotels, and attractions signaling confidence in stability.
Strategic gains, including diminished threats from Hamas and Hezbollah, have made Israel safer than before October 7, enhancing social confidence.
Looking Ahead: A Future of Promise
