Israel’s high-tech sector has develop into the spine of its economic system, reworking wartime setbacks into an financial lifeline, in response to a brand new report launched Wednesday by Startup Nation Central and the Aaron Institute for Financial Coverage at Reichman College.
The examine, Startup Nation Financial Insights: Israeli Excessive-Tech Resilience and Progress, exhibits that expertise now contributes 19% of Israel’s GDP, generates 56% of exports, and accounts for greater than 25% of tax income, regardless of using simply 10% of the workforce. In 2024, the sector helped swing the economic system from a projected 10% GDP deficit to a 3% surplus.
Professor Zvi Eckstein, head of the Aaron Institute, described excessive tech as “the battleship of Israel’s economic system,” crediting it with offsetting wartime slowdowns. He stated that with the precise insurance policies—specializing in synthetic intelligence, training, and collaboration with universities—Israel may maintain annual development of three.5%.
The report highlights document world offers, together with Google’s $32 billion buy of cybersecurity agency Wiz and Palo Alto Networks’ $25 billion acquisition of CyberArk, a part of $63.9 billion in mergers and acquisitions recorded in 2025. Protection exports additionally set a document, reaching $14.8 billion.
But the evaluation warns of challenges, together with the primary internet decline in startups in additional than a decade, manpower shortages attributable to military reserve obligation, and gaps in scaling nontechnical expertise.
“Israel’s edge lies in its distinctive skill to translate daring concepts into world options,” stated Yariv Lotan, vice chairman at Startup Nation Central. “Even by means of unprecedented challenges, the sector continues to draw capital, develop expertise, and scale innovation worldwide.”
