Israel ranks third worldwide in AI commercialization as economy grows 3.2% ahead of Rosh Hashanah

Israel ranks third globally in artificial intelligence commercialization, according to a government report released ahead of Rosh Hashanah. The report indicates that Israel remains a top ten country for AI development and research, leading to increased investment in its high-tech sector. Capital raised by high-tech ventures surged by 53% in the first half of 2026 compared to the same period in 2025. The Tel Aviv Stock Exchange TA-125 Index rose 35% over the past Jewish year, and the shekel strengthened 11% against the dollar. Inflation decreased from 2.5% in 2025 to 1.5% in 2026, with the budget deficit at 3.3%.

• Israel's nominal GDP per capita is projected to reach $70,000, though purchasing power remains $4,000 below the OECD average due to higher prices.
• The GDP grew by 3.2% in the first half of 2026.
• The unemployment rate is 3.3%, with an employment rate of 71% for those aged 15-64.