Israel's Debt-to-GDP: Balancing Security and Economic Stability

Israel's debt-to-GDP ratio increased to 68.6% in 2025 from 67.7% in 2024. This rise is primarily due to heightened security spending resulting from the war. Finance Minister Bezalel Smotrich emphasized continued fiscal measures to ensure economic stability while addressing security needs.

Israel's debt-to-GDP ratio has seen an uptick, rising to 68.6% in 2025, compared to 67.7% in 2024, as reported by the Finance Ministry on Sunday. The increase is attributed to security expenditures following recent conflict and initiatives to rebuild and support Israeli society.

Finance Minister Bezalel Smotrich stated that although the war's impact on the debt-to-GDP ratio is stabilizing, the government will keep implementing fiscal strategies. These measures are intended to balance the necessity of security with the pursuit of long-term economic stability.

Smotrich also mentioned ongoing efforts to ensure that fiscal actions remain aligned with the dual objectives of sustaining economic health and fortifying national defense capabilities.