Since October 2023, the Boycott, Divestment and Sanctions (BDS) movement intensified its campaign to isolate Israel economically. Using the war in Gaza as a rallying point, activists sought to persuade consumers to shun Israeli products, pressure institutional investors to withdraw capital, and force multinational corporations to reduce or terminate their presence in Israel. 

Given the emotional power of images emerging from the conflict and the scale of global protests, many expected serious economic consequences. Yet after roughly two and a half years, the evidence suggests that these efforts have, by and large, failed to achieve their central economic objectives.

The first and most important measure is macroeconomic resilience. Despite the shock of war, reserve mobilization, and regional instability, Israel’s economy continued to function and adapt. Growth slowed during the immediate crisis, as would be expected under wartime conditions, but the broader economy did not collapse or enter prolonged stagnation. 

Israel retained strong fundamentals: a highly educated workforce, advanced infrastructure, a sophisticated financial system, and globally competitive innovation sectors. These........

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