Israel: A flourishing economy… largely absent from the legislative campaign
Despite three years of war, Israel’s economy shows remarkable results: sustained growth, controlled inflation, and lowest unemployment to date. Yet high living costs remain voters’ primary concern, while political…
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Listen (04:35 min) To be found in the show Reading time 1 min Despite three years of war, the Israeli economy is showing remarkable results. Sustained growth, controlled inflation, low unemployment... However, the cost of living remains the primary concern of voters, while the political parties barely debated the economy during the legislative campaign.
The Israeli economy seems to defy crises. The Bank of Israel forecasts growth of 3.4% in 2026 and 5.1% in 2027, driven in particular by tech and defense industries. Inflation should fall to 1.5% at the end of the year and unemployment should be around 3%, almost full employment.
But behind these good indicators, households remain faced with a particularly expensive life. Food products cost 52% more than the OECD average. According to a poll by the Israel Democracy Institute, 41% of voters cite the economy and the cost of living among their two main concerns, ahead of security and foreign policy.
Benjamin Netanyahu's Likud has not presented a detailed economic program, nor have several of its allies. The party of Bezalel Smotrich (current Israeli Minister of Finance) notably defends the continued development of settlements in the West Bank.
In opposition, Gadi Eisenkot and the alliance between Naftali Bennett and Yaïr Lapid are banking on competition, lower taxes and opening up to imports to fight against the high cost of living. Further to the left, Yaïr Golan defends increased state intervention and control of certain prices.
The Arab parties, potential arbiters of the negotiations, also display their priorities: increase in wages, reduction in VAT and control of rents for the Joint List; public investments and employment in Arab cities for Ra'am.
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Machine-translated from French
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Only France 24 reports this story so far. We show it as a single source until another newsroom confirms it.
- France 2428 Oct, 11:38
| Publisher France 24 (established tier) | +76 |
| Detailed summary | +2 |
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