The OECD expects Israel's economy to rebound in 2025, but is more pessimistic about the pace of growth than local projections. The organization urges Israel to focus on closing socioeconomic gaps and boosting competitiveness and productivity in its economy. The high cost of living in Israel continues to reduce welfare and spur social tensions. The OECD forecasts that the country's economy will grow at a rate of 3.4% in 2025 and 5.5% in 2026.