The government revealed on Monday that Israel ranks third worldwide in artificial intelligence commercialization in its annual economy report, unveiled ahead of Rosh Hashanah.

According to the report, Israel is still among the top ten powerhouses in terms of AI development, research, and commercial implementation, something that also translated into higher investment rates in the Israeli high-tech ecosystem.

The report noted that the country recorded a 53% increase in capital raised by high-tech ventures during the first half of 2026, compared with the same period in 2025.

At the same time, the Tel Aviv Stock Exchange (TASE) TA-125 Index rose by 35% during the last Jewish calendar year, while the shekel strengthened 11% against the dollar, even amid the uncertainty created by the war.

Inflation also went down according to the report, from 2,5% in 2025 to 1,5% in 2026, and the budget deficit stayed within the 4,9% target, with the latest numbers indicating a 3,3% deficit.

Aiming for $70,000 GDP per capita

While the government announced that Israel’s nominal Gross Domestic Product (GDP) per capita was projected to reach the $70,000 milestone, it also pointed out that the purchasing power of per capita still remained $4,000 below the Organization for Economic Co-operation and Development (OECD) average.

This difference stands mainly because Israeli prices are marginally higher than the OECD average, meaning that even with a high GDP per capita in nominal terms, the actual purchasing power of Israelis is lower than average.

In terms of actual growth, the government reported a 3,2% growth in the GDP during the first six months of 2026, compared to the second half of 2025.

In the employment market, the government reported a 3,3% unemployment rate, while the employment rate among people aged 15 to 64 stands at 71%, a little below the 74% reported in OECD countries.

This post was originally published on here.