Israel Resilient. Poverty soars. Am Israel stands against all odds

Based on the latest monthly report from the Central Bureau of Statistics (Israel), one can summarise the resilience of Israeli society. Based on this report, the following is my summary of the key findings.

Population Growth: Israel’s population surpassed 10 million in late 2024, marking a 1.2% annual increase from 2023—the fastest in over a decade, driven by natural growth and immigration. As of May 2025, Jews and other non-Arab residents comprised 7,732,000 (76.6% of the total), while Arabs numbered 2,114,000 (20.9%), with the remainder including non-citizens. Urbanisation continues, with over 92% residing in cities, and fertility rates stabilising at 2.9 births per woman (higher among Arabs at 3.1).

Economic Resilience: Despite war-related disruptions, GDP grew by an estimated 2.5–3% in 2024, supported by a robust high-tech sector (contributing ~18% to GDP) and pre-war fiscal buffers. Unemployment hovered at 3.5%, with high employment rates (68% overall), though disparities persist (e.g., lower Arab female participation at ~40%). Inflation moderated to 3%, and public debt remained manageable at 68% of GDP.

Social Indicators: Life expectancy reached 83.5 years (81.8 for men, 85.3 for women), among the world’s highest. Healthcare spending was 7.5% of GDP, with strong vaccination coverage (>95%). Education saw 68% high school completion rates, but gaps in STEM fields and Arab communities were noted. Life satisfaction stood at 91.9% among Jews and 87.8% among Arabs, reflecting societal cohesion amid tensions.

Challenges and Trends: Environmental data highlighted water scarcity issues, with renewable energy at 12% of the supply. Gender equality advanced (women in 45% of managerial roles), but income inequality (Gini coefficient ~0.35) and housing affordability remained concerns, with average home prices exceeding 20x median income in major cities. International migration showed net gains of ~25,000, largely from Ukraine and Russia.

Compared to the OECD average Israel fares well, but has significant deficits in poverty and food security. Israeli NGOs like Latet report that almost 40% of children live in poverty. Israel is resilient, but more and more people pay a steep price.

OECD SURVEY 2025

According to recent OECD Economic Surveys: Israel 2025, prices for milk, cheese, and eggs are about 60% more expensive in Israel than the OECD average, while bread and cereals are around 20% higher; broader food and beverage prices stood at 52% above the OECD average as of mid-2024.

The average gross annual income in Israel for 2025 is roughly 51,000 USD (based on a monthly wage of about 14,219 ILS, or 4,257 USD). The OECD average annual wage is approximately 58,000 USD (2024 data). Food and overall prices remain about 40-52% above the OECD average. In Israel, citizens earn about 12% less than the OECD average but pay roughly 40% more, exacerbating affordability challenges.

The de facto monopolies (of import and resale) must be immediately abolished with a hard and tough hand. I never noticed that the unelected elites of the deep state went against those unconstitutional monopolies. Monopolies are always a danger to democracy and one of the main causes of poverty.

Surprisingly, poverty and food insecurity aren’t a political issue, although the problem soared in 2024. Neither the political parties, the media, nor the government are addressing this issue, leaving it to NGOs and private charity to deal with.

After the war, Israel needs a lot of reforms and a wind of change. I doubt whether the old faces and parties can match those challenges and deliver solutions. For the moment, the people of Israel are amazing and give a showcase of what resilience is. They are the heroes. The elites should take this as an example. Israel needs a movement ‘Israel First’ which erases poverty and unemployment.

Pics of the slideshow from Latet, figures from the Poverty Report 2024 from Latet. Pic cover AI-generated. Illustrative. Sources aggregated with data tools (Google, grok).