Israeli Exports Show Strength Despite War

The surprising resilience helped steady the economy during one of the most challenging periods in recent history.

By Shula Rosen

Despite ongoing rocket attacks and a wartime call-up of tens of thousands of reservists, Israeli exporters managed to ship nearly $150 billion in goods and services in 2024—just a 1% drop from the previous year.

The surprising resilience helped steady the economy during one of the most challenging periods in recent history.

Bank of Israel forecasts project the economy will rebound in 2025, with output expected to grow by 3.5% and another 4% in 2026—so long as the Gaza war does not reignite.

Technology services, which make up more than half of Israeli exports, grew 3% in 2024 and surged another 10% in the first quarter of 2025, according to the Israel Export Institute.

Even during the war, the institute remained fully operational. Staff worked through rocket alerts, a sharp drop in Palestinian labor, and disrupted supply chains.

Emergency “war rooms” helped companies reroute logistics, and virtual events connected Israeli businesses with over 5,000 international buyers.

“When rockets are flying and the world questions Israel’s stability, we keep doing what we do best: connecting Israel to the world,” said Export Institute chairman Avi Balashnikov. “Every crisis brings opportunity, and our exporters prove the Israeli spirit every day.”

Defense exports hit a record $15 billion in 2024—driven largely by European demand for air-defense systems—while delegations continued in East Asia, India, and the Gulf.

Meanwhile, venture capital has rebounded to within 10% of its pre-war pace, reinforcing Israel’s global status as a startup powerhouse.

The institute is now eyeing a return to Africa-focused trade programs and plans to showcase Israel’s innovation at COP-31 in Brazil. “In a volatile region, exports are our anchor,” said Balashnikov. “They show that Israel remains inventive, reliable, and very much open for business.”