In a powerful endorsement of Israel's economic endurance and technological prowess, OECD Secretary-General Mathias Cormann declared during a high-profile meeting in Jerusalem that Israel is poised to outpace global and OECD growth expectations in the coming year, defying geopolitical turbulence and internal challenges with remarkable tenacity.
Standing alongside Prime Minister Benjamin Netanyahu at the Prime Minister’s Office, Cormann emphasized the unshakable resilience of Israel’s economy, lauding its vibrant innovation sector as a global beacon of excellence. “Israel’s high-tech ecosystem continues to fire on all cylinders,” Cormann stated. “Its dynamism and adaptability in the face of adversity set it apart from nearly every other advanced economy today.”
The meeting, attended by top Israeli officials, including National Security Council Director Tzachi Hanegbi, National Economic Council Chairman Professor Avi Simhon, and Israel’s Ambassador to the OECD Shai Cohen, delved into the economic complexities of a world facing persistent inflation, geopolitical tensions, and supply chain disruptions.
The Secretary General noted the strength of the Israeli economy and the high-tech sector, and said that the OECD expects the Israeli economy to grow faster in the coming year than the global average in general, and OECD countries in particular. pic.twitter.com/47Qr9zPut8
— Prime Minister of Israel (@IsraeliPM) April 1, 2025
Optimism in Jerusalem: Israel as a Global Outlier
Despite the mounting global challenges, Cormann was unequivocal in his praise, asserting that the OECD anticipates Israel’s economic growth in 2025 will exceed the global average and outperform most of its fellow member nations. His remarks served as a striking contrast to the more somber tone of recent OECD economic forecasts, suggesting confidence in Israel’s long-term trajectory.
Netanyahu, in response, welcomed the OECD’s continued support and reiterated his government’s commitment to driving strategic investments, fostering innovation, and navigating economic headwinds with bold reforms. “Israel does not flinch in the face of uncertainty,” the Prime Minister said. “We innovate, we adapt, and we lead.”
The Caution Beneath the Confidence
While the rhetoric in the meeting exuded optimism, recent OECD reports have sounded more cautious notes. The organization’s December 2024 economic outlook downgraded Israel’s projected GDP growth for 2025 from a robust 4.6% to a modest 2.4%, citing heightened defense expenditures and waning consumer demand stemming from regional instability. An interim update released in March 2025 maintained that caution, highlighting entrenched inflationary pressures and calling for bold structural reforms to secure Israel’s economic resilience over the long term.
The new OECD report notes: Israel ranks first among OECD countries in terms of private spending on research and development. It should be emphasized that this data is current for 2023.
— Nucleus (@NewsNucleus) March 31, 2025
Korea is in second place, Taiwan is in third, the United States is in fourth, and Japan rounds… pic.twitter.com/V0z3pGAY1q
Nevertheless, Cormann struck a hopeful chord. His visit, the second in less than 18 months, reflects the OECD’s deepening engagement with Israel, a nation that joined the organization in 2010 and has since become a key player in global policy discussions around innovation, regulation, and fiscal discipline.
A Partnership Forged in Complexity
Cormann’s ongoing dialogue with Israeli leadership underscores the OECD’s acknowledgment of Israel’s unique position — a democracy navigating the stormy waters of Middle Eastern geopolitics while continuing to deliver breakthroughs in artificial intelligence, cybersecurity, agri-tech, and fintech.
In his previous visit to Israel in December 2023, Cormann reaffirmed the OECD’s faith in the nation’s fundamental economic strength, noting that few countries manage to balance national security imperatives with such sustained economic creativity and drive.
📌Tomorrow: Launch of the #OECD Economic Survey of #Israel 2025.
— OECD Economics (@OECDeconomy) April 1, 2025
Ensuring recovery & raising living standards.
🗓️ 2 April
⏰ 11:40 AM CEST (Paris time)
➡️Media advisory - https://t.co/4RutQYACQL pic.twitter.com/DVLQ9IkYqD
Looking Ahead
As the world’s leading economies scramble to adapt to shifting paradigms, Israel is being closely watched as a model of agility and foresight. The recent meeting in Jerusalem wasn’t merely a diplomatic exchange — it was a public affirmation of Israel’s status as a resilient economic powerhouse and a trusted partner in shaping the future of global prosperity.
Cormann's visit sends a clear signal: In an age of volatility, Israel stands tall — steadfast, strategic, and unyielding.
