Nvidia Turmoil Reaches Israel's Economy: About 40% of This Year's Growth Depends on Production Abroad

In depth

According to a Bank of Israel forecast, production by multinational companies outside the country's borders will add 2.2 percentage points to growth of 5.6% in 2026. The drop in Nvidia's sales will be felt mainly in GDP data, tax revenues and the debt ratio, and less in the labor market.

Michael Eisenberg, who is close to Netanyahu, warned that the Nvidia turmoil endangers Israel. It is not clear whether the leadership changes at the company will lead to a freeze of its expansion plan in Israel.