Rating agency S&P raised its growth forecast for Israel to 5.5% in 2026 and to 7% in 2027. The upgrade rests partly on Nvidia's activity in Israel. The agency said budget pressure will remain high due to high defense spending.
The full S&P report notes that Israel's economy justifies a rating two notches higher, but security risks prevent its raising. The agency warns of rising debt and tax increases.
Israel is expected to climb to 25th place in the ranking of the world's largest economies, with GDP of about $747 billion. Part of the jump in output stems from a change that adds to GDP production abroad by companies such as Mellanox. An escalation with Iran could bring sanctions and capital flight.
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What outlets say
Globes
S&P published a review of Israel that does not include a credit rating, and budget pressure is expected to remain high due to defense spending.
Calcalist
The full report states that Israel's economy justifies a rating two notches higher, but security risks prevent its raising, and it warns of rising debt and tax increases.
Maariv
Part of the growth jump relies on a change that adds to GDP production abroad by companies such as Mellanox, while at the same time an escalation with Iran could bring sanctions and capital flight.
