As of early 2026, Israel has a higher Gross Domestic Product (GDP) than Iran, with Israel’s economy (~$540–$550 billion) outpacing Iran’s (~$464–$475 billion) despite having a much smaller population, driven by high-tech, innovation, and global integration. Israel’s economy is projected to grow by 3.5%–4.4% in 2026, outperforming many G7 nations.