Israel ranks third worldwide in artificial intelligence commercialization, according to the government’s annual economic report released ahead of Rosh Hashanah.
The report said Israel remains among the world’s top 10 countries in AI development, research and commercial implementation. That strength has also helped drive investment in the Israeli high-tech sector, with startups raising 53 percent more capital during the first half of 2026 than during the same period last year.
The Tel Aviv Stock Exchange’s TA-125 Index rose 35 percent over the past Jewish year, while the shekel strengthened 11 percent against the dollar despite ongoing wartime uncertainty.
Inflation dropped from 2.5 percent in 2025 to 1.5 percent in 2026, while the budget deficit stood at 3.3 percent—below the government’s 4.9 percent target.
The government also projected that Israel’s nominal GDP per capita will reach $70,000. However, purchasing power remains approximately $4,000 below the OECD average, largely because prices in Israel are higher.
Israel’s economy grew 3.2 percent during the first half of 2026. The unemployment rate stood at 3.3 percent, while the employment rate among people ages 15 to 64 reached 71 percent, compared to 74 percent across OECD countries.
(YWN World Headquarters – NYC)
