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January 29, 2025

How the Israeli Economy Defied Expectations

Distracted by headlines and protests, the experts ignored the real story.

There is no doubt that fifteen months of war on multiple fronts have taken a toll on the Israeli economy, most significantly by taking so many working-age men (and no small number of women) away from their jobs for long stretches of time. But over the course of 2024, the Israeli stock market grew over 30 percent, outperforming the NASDAQ, the Standard & Poor, and Britain’s FTSE 100—contrary to most expert predictions. Ran Kivetz and Jonathan Barnett comment:

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