For more than two years, Israel has lived under conditions that would have broken most societies. War on multiple fronts, mass displacement, economic disruption, international pressure, and internal strain have tested the country’s resilience to its limits.
Nonetheless, a striking truth has emerged: Israel is not merely surviving. It is recovering, and in some respects, outperforming most of the world.
Earlier this month, The Economist ranked Israel as having the third-strongest economy in 2025, noting that “Israel has continued its strong recovery from the chaos of 2023.”
In a year when investors were told to temper expectations, the publication observed that no other country had delivered better stock-market performance in local-currency terms than Israel.
This performance did not happen by accident. It is the product of deep economic fundamentals, technological innovation, disciplined financial institutions, and, above all, a society that refused to surrender its future.
Prioritizing economic recovery
However, resilience alone is not a strategy. Israel now stands at a critical juncture: whether to rely on its historic ability to endure, or to actively prioritize economic recovery as the foundation for national renewal.
That choice matters, because the scars of the past two years are real and their effects still linger.
At the same time, the state must give special attention to reservists, right in the prime working ages, who drive the economy, and recognize that they are not only an essential security force but also a vital engine of economic growth that must be protected, especially given the hundreds of days of reserve service and unique challenges they face.
The latest Israeli Society Barometer, published by the Center for Jewish Impact, in partnership with the Geocartography Knowledge Group, offers a sober but hopeful snapshot of the country’s mood.
Conducted after the return of all living hostages from Gaza, an emotional turning point for the nation, the survey reveals a society balancing cautious optimism with deep fatigue and unresolved strain.
A national mission
For Israelis themselves, the message is clear. Economic recovery now tops the national priority list, cited by 22% of respondents, ahead of even security concerns. Younger Israelis, in particular, see economic stability as the gateway to rebuilding their lives after years defined by uncertainty. Without jobs, growth, and opportunity, no amount of military success or diplomatic positioning will translate into long-term resilience.
Encouragingly, optimism is rising. Forty-five percent of Israelis believe life will improve in the next six months, a significant jump from earlier in the year. Two-thirds believe Israel can once again become a unified society, even if that confidence is cautious. A strong majority, 76%, continues to express pride in Israeli citizenship, a powerful anchor in turbulent times.
Yet warning lights are flashing. Only one-third of Israelis currently rate their sense of personal security as good. Trust in institutions remains fragile, and social cohesion is strained. The relationship between Israel and Jewish communities worldwide, historically a pillar of Israel’s strength, is perceived by half of Israelis as having grown more distant.
This is precisely why the economy must now move from being a byproduct of resilience to a national mission in its own right.
Economic recovery is not only about GDP growth or stock prices. It is about restoring trust, rebuilding the social contract and giving citizens a sense that tomorrow can be better than today. It is about enabling families to return to routine, businesses to invest with confidence, and young people to imagine their future inside Israel rather than elsewhere.
Global trade
It is also about global economic ties.
Israel’s strongest recoveries have always been outward-looking. Trade, investment, innovation partnerships, and diaspora economic engagement are not luxuries; they are strategic assets. At a time when Israel’s legitimacy is contested in international forums, its indispensability to global markets, technology, and supply chains remains one of its most under-appreciated sources of strength.
Reprioritizing the economy means accelerating infrastructure investment, supporting small and medium-sized businesses that bore the brunt of wartime disruption, and ensuring that Israel remains a magnet for global capital despite political and security challenges. It means recognizing that economic confidence feeds national confidence, and that prosperity is a high form of security.
Israeli society today is carrying deep pain and fatigue, yet is simultaneously demonstrating remarkable civic resilience. That resilience has carried Israel through the darkest period.
Nonetheless, recovery requires something more deliberate – a leadership that understands that economic stability is not a secondary goal, but the platform on which unity, security, and global standing are rebuilt.
Israel has proven it can survive and endure. The task of 2026 is to ensure it can thrive and flourish, not despite the past two years, but because it chose to rebuild wisely after them.
The writer is the chairman of the Center for Jewish Impact and a former CEO of the World Jewish Congress and World ORT.