Business · Economy · 1 day ago
Israel’s economic growth depends heavily on its high-tech sector and Nvidia
Israel’s economy has remained strong through years of war, with the central bank forecasting 4% growth this year and 5.5% in 2027.
Its stock market has more than doubled in value since the war began in October 2023, and foreign investment in technology companies has increased.
High-tech now accounts for nearly one-fifth of the economy and 58% of exports.
But economist Benjamin Bental says much of the growth credited to Israel may come from Nvidia, a US chip company that designs networking chips in Israel and manufactures them in Taiwan.
Because of how the company’s overseas activity is counted, some of its earnings are included in Israel’s economic output.
Bental estimates that without Nvidia, this year’s growth would be closer to 2%, leaving little growth per person as the population also increases.
Israel’s economy is forecast to grow 4 percent this year after two weak years during the war.
The high-tech sector accounts for nearly one-fifth of Israel’s economic output and 58 percent of its exports.
Economist Benjamin Bental estimates that excluding Nvidia would cut the projected growth rate from 4 percent to 2 percent.
Nvidia develops network chips in Israel, and part of the resulting output is counted in Israel’s gross domestic product.
The article says that population growth means the gains from economic growth may leave little extra for individuals.
- Who
- Israel’s economy, with its high-tech sector and Nvidia playing major roles.
- What
- Israel is forecast to record strong economic growth, but the article says much of it depends on high tech and Nvidia.
- When
- The forecast is for this year; the article was published on October 10, 2026.
- Where
- Israel.
- Why
- High tech is growing much faster than the rest of the economy, while Nvidia’s chip development in Israel contributes to measured output.
This story does not have two clearly opposing sides.
a small miracle
Compared with Europe, this is downright incredible.
practically nothing
Israel’s TA-35 leading stock index began a rise that has since more than doubled its value.
About $14.6 billion in venture capital flowed into Israeli technology companies, 30 percent more than the year before.
Google acquired the cybersecurity company Wiz for $32 billion, the largest company sale in Israel’s history.
Ben & Jerry’s launched its “Milk and Honey” ice cream, made with ingredients from the region.
- Forecast growth
- 4 percent this year; 5.5 percent in 2027
- High-tech share
- Nearly one-fifth of economic output and 58 percent of exports
- Nvidia-adjusted growth estimate
- 2 percent, compared with the 4 percent forecast
- Venture capital
- About $14.6 billion flowed into Israeli technology companies in 2025
- Wiz acquisition
- Google bought the cybersecurity company for $32 billion in March
Sources
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