- February 1, 2025
- 7:04 pm
- Ukraine
Israel is a unique example of a country that not only withstands constant military threats but also uses them as an impetus for economic growth.
Is this possible in Ukraine?
Israel has become a model of how a country can leverage stressful situations for innovative development. Critical situations often encourage creative solutions and technological breakthroughs, which in turn strengthen the economy.
One of the reasons for Israel’s stability is its ability to adapt to new conditions. The share of Israel in global GDP, adjusted for purchasing power parity, is projected to be 0.28% in 2029. This indicates a stable position in the global economic arena.
Is this achievable for Ukraine, which also faces military challenges?
Oleg Vishnyakov, consul of the State of Israel in the western region of Ukraine, writes about this.
Israeli economy under wartime: a model of sustainable development
War is traditionally associated with economic destruction: a decline in production, rising unemployment, and inflation. However, Israel demonstrates that even amidst military tension, it is possible not only to survive but also to grow.
Since its foundation in 1948, Israel has repeatedly faced military threats while simultaneously demonstrating sustainable economic growth. The key question is how specifically the country has transformed crisis situations into stimuli for innovative development and what lessons Ukraine can learn from this.
Israeli GDP growth: An economic paradox?
Despite ongoing conflicts, Israel’s economy continues to grow. According to forecasts, by 2029, Israeli GDP is expected to increase by $139.2 billion – representing a growth of over 26%.
| Year | Israeli GDP (at current prices), billion $ | Growth compared to the previous year, % |
|---|---|---|
| 2024 | 525.8 | +4.1% |
| 2025 | 548.3 | +4.3% |
| 2026 | 573.2 | +4.5% |
| 2027 | 599.8 | +4.6% |
| 2028 | 627.9 | +4.7% |
| 2029 | 665.0 | +5.2% |
This growth can be attributed to several key factors:
- Innovation – Significant investments in technology and the defense sector.
- Business flexibility – The ability to adapt to crises.
- State support – Development of infrastructure and support for startups.
How does Israel adapt to war?
Israel has turned its own military culture and state of constant military readiness into a source of economic growth. This is expressed in:
- Technological breakthroughs – Israel leads in cybersecurity, defense technologies, and the IT sector.
- Large-scale investments in science – Over 5% of GDP is directed towards research.
- State strategies – Support for small businesses and the export sector.
These measures enable the country to maintain stability and even increase employment, despite the ongoing threats.
Labor market: Stability and employment growth
At first glance, war should lead to increased unemployment. However, Israel is projected to see the number of employees rise to 4.47 million by 2025.
How has this become possible?
- Military developments create jobs – Investments in the defense industry not only enhance security but also contribute to economic growth.
- Market flexibility – Remote work and automation help compensate for the mobilization of parts of the population.
- Support for innovative startups – Israel fosters a startup ecosystem, enabling businesses to quickly adapt to changes.
Ukraine can adopt this experience by supporting strategic industries and developing the technological sector.
What lessons can Ukraine learn from Israel?
Ukraine is already demonstrating examples of resilience and economic adaptation. Even during the war, the Ukrainian IT sector continues to grow, and small businesses are learning to operate in new realities.
However, to turn crises into opportunities, it is crucial to:
- Create conditions for rapid business recovery – Reducing taxes for strategic industries.
- Invest in technology and the defense industry – Developing drones and enhancing cybersecurity.
- Enhance export opportunities – Attracting foreign investment and entering new markets.
- Prepare a qualified workforce – Developing a training system tailored to business needs.
Conclusion: War as a catalyst for development
Israel has shown that even in the face of constant threats, it is possible not only to survive but also to thrive. Ukraine is already demonstrating remarkable resilience, but to transform challenges into opportunities, it is important to implement effective economic strategies.
How ready is Ukraine to follow Israel’s example? The answer to this question could be pivotal in shaping the country’s future.
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