JPPI Survey Reveals Deep Political Divide in Israeli Public’s Economic Outlook

A recent survey by the Jewish People Policy Institute (JPPI) on Israeli public perceptions of the economy reveals that views on the country’s economic strength are closely tied to political identity and trust rather than objective economic conditions. Overall, Israelis rate the economy as relatively strong, with an average score of 2.8 on a scale from -5 to +5, indicating clear confidence in economic resilience. Additionally, 65% believe it is worthwhile to invest in Israel long-term.

However, the survey exposes a stark ideological divide: right-wing respondents give the economy a high strength rating of 4.0, centrists rate it at 2.7, and left-wing respondents only 1.4. Among Arab Israelis, the rating is similarly low at 1.2. This pattern extends to investment optimism, with 91% of right-wing respondents supporting investment in Israel versus only about 30% of left-wing respondents. Notably, left-wing Israelis are even less optimistic about investment than Arab Israelis.

The data suggest that these differences reflect varying levels of trust and political interpretation rather than fundamental disagreements about economic facts. Over time, the right-wing’s confidence in the economy has increased slightly, while the left’s perception has declined sharply. This divergence has grown significantly, with the gap in economic strength perception between right and left more than doubling from 1.2 points in January 2024 to 2.6 points in January 2026.

The survey also highlights a disconnect between public confidence in the economy itself and confidence in those managing it. Only 18% of Israelis in a related May 2025 JPPI survey believed economic management was good, with sharp ideological splits: 42% of right-wing respondents trusted economic management compared to just 2% on the left. However, trust in senior Treasury officials showed less partisan difference.

JPPI’s findings underscore the erosion of a shared economic reality in Israel, driven by political polarization and differing narratives. The survey raises questions about the role of media framing in shaping public economic perceptions, as the public’s views diverge despite consistent economic indicators like the Tel Aviv 35 index, which rose significantly even as public confidence fluctuated. This growing divide complicates any unified discourse on Israel’s economic condition and future prospects.