What's Your Number? Israel's Post-War Economy
Oct 15, 2025
Explore the emotional impact of hostages returning after more than 700 days as the fog of war lifts. Delve into the WYNDEX's modest growth and the notable rise of Compugen following promising drug trial results. Discuss the economic costs of the war, including shifts in debt-to-GDP and impacts on the labor market with reservists returning to civilian life. Examine the potential for tourism revival and new regional ties, while pondering how geopolitical shifts could influence the expansion of the Abraham Accords.
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WYNDEX Shows Resilience And Volatility
- The WYNDEX outperformed Nasdaq and S&P, posting modest gains while many Israeli consumer digitals fell.
- Biotech Compugen surged 25% on positive clinical trial news, reflecting sector volatility.
Economy Absorbed Large War Costs
- The war cost Israel roughly $110 billion over two years, raising debt-to-GDP from ~60% to ~71%.
- Despite this shock, consumer spending, low inflation, and tight employment show the economy absorbed much of the burden.
Consumers Kept Spending
- Credit-card spending in September rose 1.8% above the decade average while inflation annualized is 2.9%.
- These signals imply consumer confidence and controlled inflation despite disruptions to ports and aviation.