Capital: The State of Israel has established its capital in Jerusalem, despite the absence of international agreement on the status of this city.
Local time:
It is %T:%M %A in Tel Aviv, Jerusalem
Exchange rate on :
GDP growth rate: 4.049% in 2012
FDI inward stock: 71 258 million USD in 2009
Country risk: See the country risk analysis from Israel provided by Ducroire.
Economic trends
Israel has a diversified and technologically advanced economy. After a recession in 2001 and 2002 due to the slowing down of the global economy, an information technology crisis and internal security problems, the Israeli economy re-established itself from 2003. GDP growth rate was high between 2004 and 2007. The country recorded a slow economic growth phase in 2009 which ended in 2010. The national economy is led by three drivers: a dynamic private consumption, a high level of investment in companies and in R&D and increase in exports. The current account is in surplus. The Government has established a pro-active policy in order to keep the public debt and inflation in check. Israel has one of the highest standards of living in the area. The average salary is also near the European average. Measures have been taken to reduce VAT and taxation in order to maintain domestic consumption. With the economic crisis, the level of unemployment has once again risen. It is currently above 7%.
Main branches of industry
The agricultural sector employs 2% of the population and the country's main crops are fruits and vegetables, cereal, wine and cattle farming.
Israeli companies, especially those in the high technology field, have benefited considerably from funds raised from Wall Street and other financial world markets. In effect, Israel is ranked at 2nd place, behind Canada, for the number of companies registered on the American stock exchange. High technology industries represent about 40% of the GDP. Other important sectors of activity in Israel are diamond cutting, textile and tourism. Tourism remains significant despite the Israeli-Palestinian conflict. The pharmaceutical sector shows good results as Israel specializes in generic medicines.
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 recorded the lowest trade deficit since 1990. Imports dropped by 27.3% compared to 2008 and exports dropped by 18.5% compared to 2008. The share of industrial exports continued to growth, representing 83% of total exports.
The main customers and suppliers of Israel are the European Union, the United States, Turkey, Japan, India and China. Israel's main imported goods are raw materials and half finished products, hydrocarbons, consumption goods (food products and drinks, electrical equipment, transportation equipment, etc.) and investment products. The main national exports are manufactured goods, often high technology (computer equipment, electronic components, aeronautics, electronic communication equipment, verification products and pharmaceutical products).
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