A resilient economy will be boosted by long-lasting ceasefire

B2

Medium RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in January 2025.

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Form of state Parliamentary Democracy
Head of government Benjamin Netanyahu (Prime Minister)
Next elections 2026, legislative
  • Israel excels in high-tech goods, business services and defense, with a developed economy and skilled labor force
  • Despite challenges of war and pandemic, Israel economy remained resilient
  • Record-low unemployment at 2.6% in November 2024 and inflation dropping to 3.2% indicate a tight labor market and stable economic conditions
  • The conflict has had severe consequences for several sectors and the labor market and further exposed commercial banks to sovereign risk
  • As politics shift towards post-conflict dynamics, the Israeli state may become more susceptible to instability
  • Military spending in 2024 increased the deficit to over 6.9% of GDP, contributing to public debt nearing 69%, increasing the cost of financing
(% of total, 2023)
(% of total, annual 2023)
The Allianz Trade Collection Complexity Score provides a simple assessment of how easy it is to collect debt around the world. The 2022 edition covers 49 countries that represent nearly 90% of global GDP and 85% of global trade.
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