What Netanyahu win or loss could mean for Israel’s economy
Economic concerns have taken a back seat to security as voters weigh Prime Minister Benjamin Netanyahu’s future — but rising deficits, cost of living and politically charged issues will be a challenge for whoever eventually prevails.
Gas prices, inflation and debt woes are leading voter concerns in the United States, France and elsewhere in 2026. Much less so in Israel.
Ahead of a pivotal Oct. 27 election, safety and security issues are topping the list of national concerns as voters weigh Prime Minister Benjamin Netanyahu’s political future and the US-Israel-Iran conflict continues to simmer.
A recent Gallup poll found 56% of Israelis considered issues such as public safety, war and conflict the most important problem facing the country, while the economy was a distant second at 10%. Meanwhile, forecasts indicate the economy has proven resilient despite wartime pressures. The International Monetary Fund projects Israel’s gross domestic product will expand 4.5% in 2026, outperforming many advanced economies.
Yet the economy will be a challenge for whoever prevails amid questions about the resiliency of war-fueled growth. Beneath the positive headline GDP figure lie mounting fiscal pressures, persistent frustration over high living costs, labor shortages and brain drain, among other issues. Economists point to a need for a major course correction on spending, reforms and other structural issues, which could cause a growth hit in coming decades.
