Nvidia Drives 90% of Israel's Offshore Output as NIS 25.4 Billion Skews GDP Growth
Updated
Updated · CTech · Aug 18
Nvidia Drives 90% of Israel's Offshore Output as NIS 25.4 Billion Skews GDP Growth
2 articles · Updated · CTech · Aug 18
Summary
NIS 25.4 billion of Israel’s GDP was generated abroad in the second quarter of 2026, with Nvidia tied to more than 90% of that offshore production, according to the report.
That surge widened the gap between headline growth and domestic activity: over the past six months, GDP grew 3.2% overall but only 1% excluding production abroad.
Production abroad has risen from NIS 5.3 billion, or 1.3% of GDP, in the first quarter of 2023 to 5.7% of GDP now, and could reach about NIS 93 billion in 2026 if the first-half pace holds.
The split matters because offshore output can lift national income and corporate taxes without generating the same jobs, wages, local investment and service demand inside Israel.
For policymakers, that means the Bank of Israel and Finance Ministry may need to read strong GDP more cautiously when judging rate cuts, inflation pressure and fiscal capacity.