📍Israel heads into 2026 with a surge in the capital market and high-tech fundraising, drop in inflation, jump in wages
This is your TV10 Weekend Edition, curated from the Hebrew coverage on Israel's only business and finance channel | January 3, 2025
Editor’s note
2025 ended with remarkable Israeli economic performance despite the ongoing war on multiple fronts. TASE’s leading indices surged over 50%, while foreign investment in Israeli high-tech hit an $11B record, the highest since 2022.
Inflation returned to the Bank of Israel’s target range at 2.4%, aided by a 12% shekel strengthening against the dollar. Unemployment remained low while average wages jumped 4.5% and the minimum wage rose 6.25%.
Real estate saw an exceptional shift: transaction volumes declined and a long price-increase trend halted, driven by the Bank of Israel maintaining high interest rates - the most conservative in the world - even as Europe and the US cut aggressively.
Natural gas exports drove ₪30B in state revenues, with Israeli electricity prices ranking lowest among Western countries. Despite complex geopolitical conditions, the government maintained stability and beat expectations in narrowing the deficit to 3.9%.
- Eran Bar Tal, Editor-in-Chief, TV10
A power year for the Israeli capital markets
✉️ Notes by Moshe Maimon, Head of TV10 Capital Markets
In 2025, the Tel Aviv Stock Exchange broke all-time highs dozens of times. The TA-35 Index surged 53% and the TA-90 gained 46%. Since the Iron Swords war began in October 2023, the TA-35 has climbed approximately 100% and the TA-90 roughly 93%.
The IPO market delivered an impressive recovery. Twenty companies issued shares to the public for the first time this year, with five additional companies listing shares without raising capital (including one dual-listed firm). Total equity capital raised surged to ₪20.5B, more than double 2024.
Israeli retail investors purchased ₪13.7B in shares. Foreign investors expressed confidence in the local market, purchasing ₪4.3B, mainly in financial and defense stocks. Average daily trading volume jumped 56% to ₪3.4B.
In the corporate bond market, issuance surged 70% to a record ₪165B. Twenty-six companies issued debt publicly for the first time, raising ₪6.3B.
Domestic vitality - Israeli population grows 1.1% despite migration headwinds
✉️ Notes by Sophia Tupolev, TV10 Global Editor
If you look past the headlines and strictly at the numbers, one thing becomes clear about the State of Israel entering 2026: We are a nation that chooses life.
The Central Bureau of Statistics released year-end data revealing Israel’s demographic engine firing on all cylinders despite geopolitical volatility. The population expanded 1.1% to a historic 10.178 million, driven almost entirely by domestic vitality.
Israel registered 182,000 births in 2025. This natural increase generated a net addition of 132,000 citizens, buffering the country’s demographic trajectory from shifting migration patterns. While 2025 saw a negative migration balance of roughly 20,000 as departures temporarily outpaced arrivals, birth rates do outstrip Western averages. We go on living.
Q1 2026 hiring outlook hits +25% as companies staff up
Companies are staffing up for the next chapter. According to ManpowerGroup, the Q1 2026 net employment outlook hit +25%, outpacing the global average and signaling a faster-than-expected recovery.
Where the hiring is concentrated:
Tourism (+40%): The strongest sector, betting heavily on a return to leisure and travel.
Industry (+38%): Local manufacturing is ramping up capacity.
Construction (+23%): The sharpest quarterly spike as frozen projects thaw.
With 43% of employers planning to hire and strong demand in Haifa and Jerusalem, the market has effectively priced in stability.
Looking to the coming week:
Bank of Israel Interest Rate Decision (January 5, 2026)
Previous: 4.25%
FX Reserve - USD (December 2025)
Previous: $231.4B
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The English TV10 newsletter is edited by Sophia Tupolev. We love to hear from you.
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Disclaimer: This brief is for informational purposes only and does not constitute investment advice. All data is current as of publication date.