2024 Economic Rankings Israel Named 6th-Strongest Economy

Israel has been ranked the sixth-strongest economy in 2024, according to The Economist, outperforming many larger nations despite facing war on multiple fronts and global financial challenges. The report evaluated 37 countries based on stock market performance, inflation, unemployment, and fiscal deficits placing Israel ahead of economic powerhouses like Germany, the U.S., and the U.K.

The top spot was claimed by Spain, followed by Greece, Italy, Ireland, and Denmark. Israel’s strong position was attributed to robust macroeconomic indicators, low unemployment, and an impressive stock market surge.

The nation posted an exceptional 6.7% year-over-year growth rate, reflecting a rapid economic rebound following the impact of the October 7 attacks and subsequent war. Investor confidence has also surged, with inward investment reaching $11.5 billion, the highest quarterly figure since 2021.

Israel’s trade surplus has expanded significantly, reaching $24.8 billion between Q4 2023 and Q3 2024 up from $19.5 billion pre-war. Additionally, the shekel has appreciated by 5% against the U.S. dollar, signaling market confidence in the country’s economic resilience.

The Tel Aviv 125 stock index has outperformed the S&P 500, climbing 28.5%, compared to the 24.3% rise of the U.S. benchmark index.

Despite these achievements, challenges remain. Israel’s budget deficit stands at 7.5% of GDP, and credit rating agencies warn that a full return to pre-war growth rates may take time. However, with sustained investment, strong domestic consumption, and continued technological innovation, Israel’s economy is poised to navigate these obstacles successfully.

Israel’s economic strength is yet another testament to its ability to thrive even in the face of adversity. Share this article or subscribe to our newsletter for more insights on Israel’s financial outlook.