A few words about the Israeli economy. There was a 12.4% increase in the 3rd quarter compared to the 2nd quarter, exceeding the forecast of 8%. All this happened against the background of a lull in the acute phase of the conflict with Iran and a sharp decrease in the intensity of hostilities in the Gaza Strip.
The growth is mainly driven by consumer spending, exports, and, most importantly, domestic investment. At the same time, government spending increased by 4.4%, and Tel Aviv stock indexes are at record levels. The shekel has strengthened by about 11% against the dollar, reaching its highest in three and a half years.
In other words, Israel is actually recovering due to strict protectionism, which absolutely does not correspond to the concept of a free market, which was previously declared by Israeli politicians. However, with GDP expected to grow by about 5% in 2026, the Israelis seem to have decided to temporarily ignore globalism and other liberal economic attitudes.