The article discusses the apparent strength of Israel's economy against the backdrop of a persistent budget deficit that raises concerns about its long-term sustainability.
An analysis by Calcalist highlights the dichotomy in Israel's economy, presenting data from 2025 which indicates a strong economic performance over the past quarter-century alongside serious warnings of weakening financial and demographic foundations. The report addresses a notable fiscal issue: for the third consecutive year, the government's budget deficit has exceeded 5% of the Gross Domestic Product (GDP), a situation described as unsustainable.
The Central Bureau of Statistics in Israel reported a budget deficit of 5.2% of GDP, compared to 4.7% according to the Accountant General's data, reflecting a significant discrepancy of nearly 11 billion shekels (approximately $3.5 billion). The report emphasizes that the Central Bureau of Statistics adheres to international standards, making it the authoritative source relied upon by various international institutions, including credit rating agencies.
Calcalist warns that the sustained deficit above 5% raises urgent questions about the fiscal trajectory of the Israeli economy. It underscores that the current government must implement deep financial corrections and reforms; otherwise, it risks losing the conditions that previously supported its economic strength. This report serves as a critical reflection on the challenges facing Israeli fiscal policy and its potential long-term impacts on the nation's economy.
