Download this document here.
- Israel is one of the most technologically advanced market economies in the world, with more companies listed on the NASDAQ than any country other than Canada and the United States.
- Israel’s prosperity and growth has been heralded by its recent transition from an emerging market to the status of developed nation according to the OECD.3
- Israel continues to enjoy economic momentum, with the OECD predicting GDP growth of 5.4% in 2011, up from 4.7% in 2010.1
Israel is at the helm of world economic recovery and growth. The economy relies heavily upon the high-tech sector and its exports. Other leading industries are the diamonds, agriculture, and energy (natural gas reserves and solar energy).
After contracting slightly in 2001 and 2002 as a result of the Palestinian conflict and troubles in the high-tech sector, Israel’s GDP grew about 5% per year from 2004-2007. The global financial crisis of 2008-2009 spurred a brief recession in Israel, but the country’s economy, which entered the crisis with solid fundamentals following years of prudent fiscal policy, a series of liberalizing reforms, and a resilient banking sector, has shown signs of early recovery.
Following GDP growth of 4% in 2008, Israel’s GDP slipped to 0.2% in 2009 but reached 3.4% in 2010 as exports rebounded.4 The combination of a highly educated workforce and an environment of entrepreneurship encourages innovation and growth.
In May of 2010, the Organization for Economic Cooperation and Development (OECD) unanimously voted to admit Israel as a member country, in recognition of its strong economic underpinnings.
- GDP US$217.1 billion (2010 estimate)
- 4.6% GDP Growth (2010 est.)
- GDP per capita US$29,500 (2010 est.)
- GDP by sector: agriculture (2.7%), industry (31.7%), services (65.6%) (2008 est.)
- Key industries include high-tech projects (including medical, biomedical, green energy, aviation, communications, computer-aided design and manufacture, fibre optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metal products, chemical products, plastics, diamond cutting, textiles, and footwear.
- Foreign Trade 2010: +12.5% Import Growth; +13.8 Export Growth
- Exports US$54.35 billion (2010 est.) – Export commodities: machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
- Imports amounting to US$55.6 billion (2010 est.)
- Import commodities include raw materials, military equipment, investment goods, rough diamonds, fuels, grain, and various consumer goods.
4- CIA World Fact Book