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Capital:

Local time:
It is %T:%M %A in Tel Aviv, Jerusalem

Exchange rate on :

GDP growth rate: 3.670% in 2013

FDI inward stock: 77 810 million USD in 2010

Country risk: See the country risk analysis from Israel provided by Ducroire.

Economic trends

While enduring the effects of the global economic crisis, Israel has experienced in 2009 an economic slowdown phase, without having to go into recession due to a cautious monetary and fiscal policy.  The growth rate, which was revived in 2010, is estimated to be 4.2% and it is led by three different drivers: a dynamic private consumption, a high level of investment in companies and in R&D, and an increase in exports.  The growth should slow down in 2011 due to the presumed weakness of the economies of Israel's main trade partners which are the United States and the European Union. 

The priority of Israel is to maintain growth and control inflation on the context of the currency appreciation (Shekel) and the rise in real estate prices.  The government has established a pro-active policy in order to reduce the public debt and inflation.  Measures have been taken to reduce VAT and taxes in order to maintain domestic consumption. 

Israel enjoys one of the highest standards of living in the area and the average salary is at a close level to the European average.  However, 25% of Israelis live in poverty and inequalities are strong.  The unemployment rate experienced a rise with the global crisis, surpassing 7%, but it has decreased to around 6% in 2010. 

Main branches of industry

Israel has a diversified and technologically advanced economy.  The agricultural sector employs 2% of the population and the country's main crops are fruits and vegetables, cereals, wine and cattle farming.  The country is self-sufficient in food production, with the exception of cereals.

The fields of excellence of the Israeli industry are chemical products (Israel specializes in generic medicines), plastics engineering and high technologies.  The companies, particularly those of the state-of-the-art technology, have profited from the collection of funds arriving from Wall Street and other financial centers of the world.  As a fact, Israel classifies second, after Canada, for the number of companies registered in the American stock market.  The  state-of-the-art technologies (aeronautics, electronics, telecommunications, software, bio-technologies) represent about 40% of GDP.  The other important activity sectors in Israel are diamond cutting, textile and tourism.  This last one is always significant despite the Israeli-Palestian conflict. 

International trade

The Israeli economy is extremely open. Israel's exports represent around 24% of the GNP. They are the backbone of the country's growth.

In 2009, Israel's trade balance, which was previously in deficit, recorded a historical surplus due to a strong drop on imports.  The situation was again reversed in 2010, a trend that should continue in 2011. 

The main customers and suppliers of Israel are the European Union, the United States, Turkey, Japan, India and China. The main goods imported by the Israeli state are raw materials and half-finished products, hydrocarbons, consumption goods (food products and drinks, electrical equipment, transport equipment, etc.) and investment products. The main national exports are manufactured goods which are often high technology products (computer equipment, electronic components, aeronautics, electronic communication equipment, verification products and pharmaceutical products).