Israel’s economy and financial markets are booming — even as conflict rages in the Middle East

Israeli Soldiers secure the opening of a tunnel near the border with Israel on December 15, 2023, northern Gaza Strip. Amir Levy | Getty Images Earlier this month, the Bank of Israel slashed its growth forecast for this year, citing the hostilities in the Middle East. But, remarkably for a country that has been on an effective war footing for almost three years, the central bank still expects Israel's economy to grow by 3.8% in 2026, even after the 1.4 percentage point downgrade. …