OECD forecast highlights Israel’s growth outlook
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The Organization for Economic Co-operation and Development (OECD) projects Israel’s economy will grow 3.3% in 2026 and accelerate to 5.6% in 2027, reflecting expectations of recovering private consumption, renewed construction activity, controlled inflation, and further Bank of Israel rate cuts.
The stronger growth outlook also underscores a deeper fiscal concern, with Israel’s deficit expected to reach 5.3% of GDP in 2026 and 4.2% in 2027, while the debt-to-GDP ratio is projected to remain around 70%. The organization called for Israel to rebuild fiscal buffers, preserve revenue measures introduced in the 2025 budget, and reduce spending once security conditions allow.
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