Highlights
- Israeli equities remained resilient despite significant geopolitical volatility. BIGI® gained 7.74% in Q2 and 10.63% YTD.
- BIGITech® rose 15.81% in Q2 and 15.25% YTD as growth-oriented stocks regained leadership.
- Israeli defense equities consolidated after their exceptional 2025 rally. The MarketVector™ Israel Defense Industries Index declined 15.33% in Q2 but remained 2.93% higher YTD.
- The Bank of Israel lowered its policy rate to 3.75% on May 25 and again to 3.5% on July 6. The easing cycle reflects moderating inflation and a recovery in economic activity, although the labor market remains tight and business-sector wages increased 6.8% year-over-year during March–May.
- The Bank of Israel forecasts GDP growth of 4.0% in 2026 and 5.5% in 2027. Growth is expected to be supported by the return of reservists to employment, an increased supply of foreign workers, and a recovery in investment.
- The shekel appreciated approximately 5.6% against the U.S. dollar and 6.8% against the euro during Q2.
Click here to read the report with interactive charts showing exact data points.
Get the latest news & insights from MarketVector
Get the newsletterRelated:
Most popular
-
.png)
Commentary50% of Web Traffic Is Now Machines.
-
CommentaryHidden GEMs: Mongolia
