The gross domestic product (GDP) in current prices in Israel amounted to 542.29 billion U.S. dollars in 2024. Between 1980 and 2024, the GDP rose by 517.25 billion U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The GDP will steadily rise by 256.77 billion U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.This indicator describes the gross domestic product at current prices. The values are based upon the GDP in national currency converted to U.S. dollars using market exchange rates (yearly average). The GDP represents the total value of final goods and services produced during a year.

This statistic shows gross domestic product (GDP) of the MENA countries in 2024. The MENA region in North Africa and the Middle East comprises the countries Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, and Yemen. In 2024, the GDP of Saudi Arabia amounted to approximately 1.085 trillion U.S. dollars.

Israel's approved defense budget for 2025 has increased markedly to almost *** billion Israeli shekels (approximately **** billion U.S. dollars), an ** percent increase relative to 2022. This substantial elevation in military expenditure mirrors Israel's sharpened focus on military readiness, a shift in national priorities prompted by the Israel-Hamas conflict that began in October 2023. However, there is a slight pullback in defense spending compared to 2024, which amounted to ***** billion Israeli shekels (about **** billion U.S. dollars). This suggests that Israel's budget planners anticipated less armed conflict in 2025. Conflict driving a surge in government spending The increase in military spending is part of a broader trend of elevated state expenditure due to the war in the Middle East. During the first quarter of 2024, government consumption in Israel reached over *** billion shekels (about ** billion U.S. dollars), marking a ** percent increase compared to the same period in 2023. This bump in public spending has been largely driven by defense, but also welfare and compensation payouts to those impacted by hostilities. Growing national debt The ramifications of increased military spending are evident in Israel's national debt figures. By the third quarter of 2024, general government debt had swelled to over *** trillion Israeli shekels (around *** billion U.S. dollars). This represented a 20 percent increase in just 12 months. The escalation in debt levels underscores the financial strain of sustaining heightened military expenditure, which reached *** percent of the country's gross domestic product in 2024.

The United States led the ranking of the countries with the highest military spending in 2024, with 997 billion U.S. dollars dedicated to the military. That constituted almost 40 percent of the total military spending worldwide that year, which amounted to 2.7 trillion U.S. dollars. This amounted to 3.4 percent of the U.S.'s gross domestic product (GDP), placing the country lower in the ranking of military expenditure as a percentage of GDP, compared to Ukraine, Israel, Algeria, Saudi Arabia, and Russia. China was the second largest military spender, with an estimated 314 billion U.S. dollars spent, with Russia following in third. Defense budgetAccording to the U.S. Congressional Budget Office, the outlays for defense will rise to 1.1 trillion U.S. dollars by 2033. The largest parts of the budget are dedicated to the Departments of the Navy and the Air Force. The budget for the U.S. Air Force for 2024 was nearly 260 billion U.S. dollars.Global military spendingThe value of military spending globally has grown steadily in the past years and reached 2.7 trillion U.S. dollars in 2024. Reasons for this are the outbreak of the Russia-Ukraine war in 2022, the war in Gaza, as well as increasing tensions in the South China Sea. North America is by far the leading region worldwide in terms of expenditure on the military.