(April 29, 2025 / JNS) Minister of Economy and Industry Nir Barkat expressed strong optimism about Israel’s economic future at the JNS International Policy Summit in Jerusalem on Monday.
Speaking with JNS CEO Alex Traiman, Barkat predicted that Israel’s annual trade would rise from $150 billion today to $1 trillion within 15 to 20 years, representing about 10% growth per year. “When we get there, Israel’s a superpower,” he said.
Barkat also addressed the impact of 18 months of war on the economy, saying Israel is already “exiting” the dip caused by the conflict and seeing “high interest” from global markets. He cited praise from OECD Secretary-General Mathias Cormann, who recently commended Israel’s resilience.
Regarding the Abraham Accords, Barkat said the framework is ready to expand, mentioning Saudi Arabia and Indonesia as potential new partners.
Asked about scaling up trade with limited manufacturing, Barkat said Israel will continue to lead in health tech, agrotech, food tech, climate tech, and advanced manufacturing, while leveraging manufacturing capabilities abroad. “In health-tech sciences, we have 2,000 Israeli startups—second only to the U.S.,” he noted.
On labor policy after the Oct. 7 war, Barkat made it clear that Palestinian Authority workers are not welcome while its “pay-for-slay” policy continues. Instead, Israel is bringing in labor from peaceful countries like India and China to fill low-skill jobs. Barkat emphasized that Israel needs to boost its high-tech workforce from 10% to 25%.
On U.S. economic ties, Barkat dismissed concerns over President Donald Trump’s proposed tariffs, expressing confidence in strong relations. He even proposed treating Israel as the “51st state” to symbolize deeper economic collaboration between the two allies.