Economic overview Israel, in 36 editions.

Israel has a market economy with substantial government participation. It depends on imports for crude oil, food, grains, raw materials, and military equipment. Despite limited natural resources, Israel has developed its agriculture agricultural and industry industrial sectors on an intensive scale over the past 20 years. Industry accounts for about 23% of the labor force, agriculture for 6%, 5%, and services for most of the balance. Diamonds, high-technology machinery, and agricultural products (fruits and vegetables) are the biggest export earners. The balance of payments has traditionally been negative, but is offset by large transfer payments and foreign loans. Nearly two-thirds About half of Israel's $16 $18 billion external government debt is owed to the US, which is its major source for economic and military aid. To earn needed foreign exchange, Israel must continue to exploit high-technology niches in the international market, such as medical scanning equipment. In 1987 the economy showed a 5.2% growth in real GNP, the best gain in nearly Iraq's invasion of Kuwait on 2 August dealt a decade; blow to Israel's economy in 1988-89 1990. Higher world oil prices added an estimated $300 million to Israel's 1990 oil import bill, and helped keep the gain was only 1% annually, largely because of inflation rate at 18% for the economic impact year. Regional tensions and continuing acts of the Palestinian uprising (intifadah). Inflation dropped from an annual rate of over 400% in 1984 (intifadah)-related violence contributed to about 16% a sharp dropoff in 1987-88 without any major tourism--a key source of foreign exchange--to the lowest level since the 1973 Arab-Israeli war. In 1991, the influx of up to 400,000 Soviet immigrants will increase in unemployment. unemployment, intensify the country's housing crisis, and contribute to a widening budget deficit.

Israel has a market economy with substantial government participation. It
depends on imports for of crude oil, food, grains, raw materials, and military
equipment. Despite limited natural resources, Israel has intensively
developed its agricultural and industrial sectors on an intensive scale over the past 20 years.
Industry accounts for employs about 23% 20% of the labor force, Israeli workers, agriculture for 5%, and services for
most of the balance. rest. Diamonds, high-technology machinery, equipment, and agricultural
products (fruits and vegetables) are the biggest export earners. The balance of payments has traditionally been negative, but is offset leading exports. Israel usually posts
balance-of-payments deficits, which are covered by large transfer payments
from abroad and by foreign loans. About Roughly half of Israel's $18 the government's $17
billion external government debt is owed to the US, United States, which is its major
source for of economic and military aid. To earn needed foreign exchange, Israel must continue to exploit
has been targeting high-technology niches in the international market, markets, such as
medical scanning equipment. Iraq's invasion of Kuwait on 2 in August 1990 dealt a
blow to Israel's economy in 1990. economy. Higher world oil prices added an estimated $300
million to Israel's 1990 the oil import bill, bill that year and helped keep the annual inflation rate at 18% for the year.
18%. Regional tensions tension and continuing acts of the continuing Palestinian uprising (intifadah)-related violence (intifadah)
have contributed to a sharp dropoff drop in tourism--a tourism - a key source of foreign exchange--to exchange earner
- to the lowest level since the 1973 Arab-Israeli war. In 1991, the The influx of up to 400,000 Soviet Jewish
immigrants from the former USSR, which topped 330,000 during the period
1990-91, will increase unemployment, intensify the country's housing crisis, and contribute to a widening problems, widen the
government budget deficit. deficit, and fuel inflation.

Israel has a market economy with substantial government participation. It
depends on imports of crude oil, grains, raw materials, and military
equipment. Despite limited natural resources, Israel has intensively
developed its agricultural and industrial sectors over the past 20 years.
Industry employs about 20% of Israeli workers, agriculture 5%, and services
most of the rest. Diamonds, high-technology equipment, and agricultural
products (fruits and vegetables) are leading exports. Israel usually posts
balance-of-payments deficits, which are covered by large transfer payments
from abroad and by foreign loans. Roughly half of the government's $17
billion external debt is owed to the United States, which is its major
source of economic and military aid. To earn needed foreign exchange, Israel
has been targeting high-technology niches in international markets, such as
medical scanning equipment. Iraq's invasion of Kuwait in August 1990 dealt a
blow to Israel's economy. Higher world oil prices added an estimated $300
million to the oil import bill that year and helped keep annual inflation at
18%. Regional tension and the continuing Palestinian uprising (intifadah)
have contributed to a sharp drop in tourism - a key foreign exchange earner
- to the lowest level since the 1973 Arab-Israeli war. The influx of Jewish
immigrants from the former
USSR, which topped 330,000 400,000 during the period 1990-92, has increased
1990-91, will increase unemployment, intensify intensified housing problems, widen and widened the
government
budget deficit, deficit. At the same time, a considerable number of the immigrants
bring to the economy valuable scientific and fuel inflation. professional expertise.

Israel has a market economy with substantial government participation. It
It depends on imports of crude oil, grains, raw materials, and military
military equipment. Despite limited natural resources, Israel has intensively
intensively developed its agricultural and industrial sectors over the
past 20 years.
Industry employs about 20% 22% of Israeli workers, agriculture 5%,
construction 6.5%, agriculture, forestry, and services fishing 3.5%, and
services most of the rest. Diamonds, high-technology equipment, and agricultural
agricultural products (fruits and vegetables) are leading exports.
Israel usually posts
balance-of-payments current account deficits, which are covered by
large transfer payments
from abroad and by foreign loans. Roughly half
of the government's $17
billion external debt is owed to the United States, which
is its major
source of economic and military aid. To earn needed
foreign exchange, Israel
has been targeting high-technology niches in
international markets, such as
medical scanning equipment. The influx
of Jewish immigrants from the former
USSR, which topped 400,000 450,000 during
the period 1990-92, has 1990-93, increased
unemployment, intensified housing
problems, and widened strained the government
budget deficit. budget. At the same time, a considerable number of the immigrants
immigrants bring to the economy valuable scientific and professional
expertise. Economic problems have eased as immigration has declined,
but activity has slowed as the economy shifts from housing to
export-driven growth.

Israel has a market economy with substantial government participation.
participation. It depends on imports of crude oil, grains, raw
materials, and
military equipment. Despite limited natural resources,
Israel has
intensively developed its agricultural and industrial
sectors over the
past 20 years. Industry employs about 22% of Israeli workers,
workers, construction 6.5%, agriculture, forestry, and fishing 3.5%, and
and services most of the rest. Israel is largely self-sufficient in
food production except for grains. Diamonds, high-technology
equipment, and
agricultural products (fruits and vegetables) are
leading exports.
Israel usually posts current account deficits, which
are covered by
large transfer payments from abroad and by foreign
loans. Roughly half
of the government's external debt is owed to the
United States, which
is its major source of economic and military aid.
To earn needed
foreign exchange, Israel has been targeting
high-technology niches in
international markets, such as medical
scanning equipment. The influx
of Jewish immigrants from the former
USSR, which topped 450,000 during
the period 1990-93, 1990-94, increased
unemployment, intensified housing
problems, and strained the
government budget. At the same time, the
immigrants bring to the
economy valuable scientific and professional
expertise. Economic problems have eased as immigration has declined,
but activity has slowed as the economy shifts from housing to
export-driven growth.

Israel has a market economy with substantial government
government participation. It depends on imports of crude oil,
grains, raw
materials, and military equipment. Despite limited
natural resources,
Israel has intensively developed its agricultural
and industrial
sectors over the past 20 years. Industry employs
about 22% of Israeli
workers, construction 6.5%, agriculture, forestry, and fishing 3.5%,
3.5%, and services most of the rest. Israel is largely self-sufficient in
food production except for grains. Diamonds, high-technology
equipment, and agricultural products (fruits and vegetables) are
leading exports. Israel usually posts current account deficits, which
which are covered by large transfer payments from abroad and by foreign
foreign loans. Roughly half of the government's external debt is
owed to the
United States, US, which is its major source of economic and military aid.
aid. To earn needed foreign exchange, Israel has been targeting
high-technology niches in international markets, such as medical
scanning equipment. The influx of Jewish immigrants from the former
USSR, which topped 450,000 525,000 during the period 1990-94, 1990-95, increased
unemployment, intensified housing problems, and strained the
government budget. At the same time, the immigrants bring to the
economy valuable scientific and professional expertise.

Israel has a market economy with substantial
government participation. It depends on imports of crude oil,
grains,
raw materials, and military equipment. Despite limited
natural
resources, Israel has intensively developed its agricultural
and
industrial sectors over the past 20 years. Industry employs Manufacturing and
construction employ about 22% 29% of Israeli workers, agriculture,
forestry, and fishing
3.5%, and services the rest. Israel is largely
self-sufficient in
food production except for grains. Diamonds, high-technology
high-technology equipment, and agricultural products (fruits and
vegetables) are
leading exports. Israel usually posts sizable current
account deficits,
which are covered by large transfer payments from
abroad and by
foreign loans. Roughly half of the government's external
debt is
owed to the US, which is its major source of economic and military
military aid. To earn needed foreign exchange, Israel has been targeting
targeting high-technology niches in international markets, such as medical
medical scanning equipment. The influx of Jewish immigrants from the former
former USSR, which topped 525,000 750,000 during the period 1990-95, increased 1989-96, initially
increased unemployment, intensified housing problems, and strained the
government budget. At the same time, the immigrants bring to the
economy valuable scientific and professional expertise.

Israel has a technologically advanced market economy
with substantial
government participation. It depends on imports of
crude oil, grains,
raw materials, and military equipment. Despite
limited natural
resources, Israel has intensively developed its
agricultural and
industrial sectors over the past 20 years.
Manufacturing and
construction employ about 29% 28% of Israeli workers, agriculture, workers;
agriculture, forestry, and fishing 3.5%, only 2.6%; and services the rest.
Israel is largely
self-sufficient in food production except for
grains. Diamonds,
high-technology equipment, and agricultural products
(fruits and
vegetables) are leading exports. Israel usually posts
sizable current
account deficits, which are covered by large transfer
payments from
abroad and by foreign loans. Roughly half of the
government's external
debt is owed to the US, which is its major
source of economic and
military aid. To earn needed foreign exchange,
Israel has been
targeting high-technology niches in international
markets, such as
medical scanning equipment. The influx of Jewish
immigrants from the
former USSR, which USSR topped 750,000 during the period 1989-96, initially
1989-97, bringing the population of Israel from the former Soviet
Union to one million, or one-sixth of the total population. Initially
this great influx increased unemployment, intensified housing
problems, and strained the
government budget. At the same time, the
immigrants bring to the
economy valuable scientific and professional expertise. expertise
of substantial value for the future.

Israel has a technologically advanced market economy
economy with substantial government participation. It depends on
imports of
crude oil, grains, raw materials, and military equipment. Despite
Despite limited natural resources, Israel has intensively developed its
its agricultural and industrial sectors over the past 20 years.
Manufacturing and construction employ about 28% of Israeli workers;
agriculture, forestry, and fishing only 2.6%; and services the rest.
Israel is largely self-sufficient in food production except for
grains. Diamonds, high-technology equipment, and agricultural products
products (fruits and vegetables) are leading exports. Israel usually posts
posts sizable current account deficits, which are covered by large transfer
transfer payments from abroad and by foreign loans. Roughly half of the
the government's external debt is owed to the US, which is its major
source of economic and military aid. To earn needed foreign exchange,
Israel has been targeting high-technology niches in international
markets, such as medical scanning equipment. The influx of Jewish
immigrants
from the former USSR topped 750,000 during the period 1989-98,
1989-97, bringing the population of Israel from the former Soviet
Union to
one million, or one-sixth of the total population. Initially
this great influx increased unemployment, intensified housing
problems, population and strained the government budget. At the same time, the
immigrants bring to the economy adding scientific
and professional expertise
of substantial value for the economy's
future. The influx, coupled with the opening of new markets at the
end of the Cold War, energized Israel's economy, which grew rapidly
in the early 1990s. But growth began slowing in 1996 when the
government imposed tighter fiscal and monetary policies and the
immigration bonus petered out.

Israel has a technologically advanced market
economy with substantial government participation. It depends on
imports of crude oil, grains, raw materials, and military equipment.
Despite limited natural resources, Israel has intensively developed
its agricultural and industrial sectors over the past 20 years.
Manufacturing and construction employ about 28% of Israeli workers;
agriculture, forestry, and fishing 2.6%; and services the rest.
Israel is largely self-sufficient in food production except for
grains. Diamonds, high-technology equipment, and agricultural
products (fruits and vegetables) are leading exports. Israel usually
posts sizable current account deficits, which are covered by large
transfer payments from abroad and by foreign loans. Roughly half of
the government's external debt is owed to the US, which is its major
source of economic and military aid. The influx of Jewish immigrants
from the former USSR topped 750,000 during the period 1989-98,
1989-99, bringing the population of Israel from the former Soviet Union to
one 1 million, one-sixth of the total population population, and adding scientific
and professional expertise of substantial value for the economy's
future. The influx, coupled with the opening of new markets at the
end of the Cold War, energized Israel's economy, which grew rapidly
in the early 1990s. But growth began slowing in 1996 when the
government imposed tighter fiscal and monetary policies and the
immigration bonus petered out. Those policies brought inflation down to record low levels in 1999 and, coupled with improved prospects for the Middle East peace process, are creating a climate for stronger GDP growth in the year 2000.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel is largely self-sufficient in food production except for grains. Diamonds, Cuts diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR topped 750,000 during the period 1989-99, bringing the population of Israel from the former Soviet Union to 1 million, one-sixth of the total population, and adding scientific and professional expertise of substantial value for the economy's future. The influx, coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s. But growth began slowing moderating in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Those policies brought inflation down to record low levels Growth was a strong 5.9% in 1999 and, 2000. But the outbreak of Palestinian unrest in late September and the collapse of the BARAK Government - coupled with improved prospects for the Middle East peace process, are creating a climate for stronger GDP growth cooling off in the year 2000. high-technology and tourist sectors - undercut the boom and foreshadows a slowdown to 2%-3% in 2001.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel is largely self-sufficient in food production except for grains. Cuts Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR topped 750,000 during the period 1989-99, bringing the population of Israel from the former Soviet Union to 1 million, one-sixth of the total population, and adding scientific and professional expertise of substantial value for the economy's future. The influx, 1989-99 coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s. But growth began moderating in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Growth was a strong 5.9% 6.4% in 2000. But the outbreak of Palestinian unrest in late September and the collapse of bitter Israeli-Palestinian conflict, increasingly the BARAK Government - coupled with a cooling off declines in the high-technology and tourist sectors - undercut the boom sectors, and foreshadows a slowdown fiscal austerity measures in the face of growing inflation have led to 2%-3% declines in 2001. GDP in 2001 and 2002.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports significant quantities of grain but is largely self-sufficient in food production except for grains. other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR during the period 1989-99 1989-99, coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s. But 1990s; growth began moderating in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Growth was a strong 6.4% 7.2% in 2000. But 2000, but the bitter Israeli-Palestinian conflict, increasingly the declines difficulties in the high-technology high-technology, construction, and tourist sectors, and fiscal austerity measures in the face of growing inflation have led to small declines in GDP in 2001 and 2002.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports significant substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR during the period 1989-99, coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s; growth began moderating in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Growth was a strong 7.2% in 2000, but the bitter Israeli-Palestinian conflict, conflict; difficulties in the high-technology, construction, and tourist sectors, sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy grew at 1% in 2003, with improvements in tourism and foreign direct investment. In 2004, rising business and consumer confidence - as well as higher demand for Israeli exports - boosted GDP by 2.7%.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy grew at 1% in 2003, with improvements in tourism and foreign direct investment. In 2004, rising business and consumer confidence - as well as higher demand for Israeli exports - boosted GDP by 2.7%. 3.9%.

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy grew at 1% in 2003, with improvements rebounded in tourism 2003 and foreign direct investment. In 2004, rising business growing at a 4% rate each year, as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency in the markets. In 2005, rising consumer confidence confidence, tourism, and foreign direct investment - as well as higher demand for Israeli exports - boosted GDP by 3.9%. 4.7%.

Israel has a technologically advanced market economy with substantial substantial, though diminishing, government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy rebounded in 2003 and 2004, 2003-05, growing at a 4% to 5.2% rate each year, as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency in the markets. In 2005, rising consumer confidence, tourism, and foreign direct investment - as well as higher demand for Israeli exports - boosted The conflict with Lebanon in summer 2006 slightly dampened GDP by 4.7%. growth, but continuing strong foreign investment, tax revenue, and private consumption levels helped the economy recover quickly.

Israel has a technologically advanced market economy with substantial, though diminishing, government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain, grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties Israel's GDP, after contracting slightly in the high-technology, construction, 2001 and tourist sectors; 2002 due to the Palestinian conflict and fiscal austerity troubles in the face of growing inflation led to small declines in GDP in 2001 and 2002. high-technology sector, has grown by about 5% per year since 2003. The economy rebounded grew an estimated 5.4% in 2003-05, growing at a 4% to 5.2% rate each year, as 2007, the government tightened fastest pace since 2000. The government's prudent fiscal policy and implemented structural reforms to boost competition and efficiency in over the markets. The conflict with Lebanon in summer 2006 slightly dampened GDP growth, but continuing past few years have helped to induce strong foreign investment, tax revenue, revenues, and private consumption levels helped consumption, setting the economy recover quickly. on a solid growth path.

Israel has a technologically advanced market economy with substantial, though diminishing, government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, its major source of economic and military aid. Israel's GDP, after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector, has grown by about 5% per year since 2003. The economy grew an estimated 5.4% 3.9% in 2007, 2008, slowed by the fastest pace since 2000. global financial crisis. The government's prudent fiscal policy and structural reforms over the past few years have helped to induce strong foreign investment, tax revenues, and private consumption, setting the economy on a solid growth path.

Israel has a technologically advanced market economy with substantial, though diminishing, government participation. economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, its major source of economic and military aid. Israel's GDP, after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector, has grown by grew about 5% per year since 2003. from 2004-07. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a series of liberalizing reforms - and a resilient banking sector, and the economy grew has shown signs of an estimated 3.9% early recovery. Following GDP growth of 4% in 2008, slowed by the Israel's GDP slipped to 0.2% in 2009, but reached 3.4% in 2010, as exports rebounded. The global financial crisis. economic downturn affected Israel's economy primarily through reduced demand for Israel's exports in the United States and EU, Israel's top trading partners. Exports account for about 25% of the country's GDP. The government's prudent Israeli Government responded to the recession by implementing a modest fiscal stimulus package and an aggressive expansionary monetary policy - including cutting interest rates to record lows, purchasing government bonds, and structural reforms over intervening in the past few years have helped to induce strong foreign investment, tax revenues, currency market. The Bank of Israel began raising interest rates in the summer of 2009 when inflation rose above the upper end of the Bank's target and private consumption, setting the economy on a solid growth path. began to show signs of recovery.

Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, its major source of economic and military aid. Israel's GDP, after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector, grew about 5% per year from 2004-07. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a series of liberalizing reforms - and a resilient banking sector, and the economy has shown signs of an 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. The global economic downturn affected Israel's economy primarily through reduced demand for Israel's exports in the United States and EU, Israel's top trading partners. Exports of goods and services account for about 25% 40% of the country's GDP. The Israeli Government responded to the recession by implementing a modest fiscal stimulus package and an aggressive expansionary monetary policy - including cutting interest rates to record lows, purchasing government bonds, and intervening in the foreign currency market. The Bank of Israel began raising interest rates in the summer of 2009 when inflation rose above the upper end of the Bank's target and the economy began to show signs of recovery.

Israel has a technologically advanced market economy. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel's Israel''s energy security outlook. The Leviathan field was one of the world's world''s largest offshore natural gas finds this past decade, and production from the Tama field is expected to meet all of Israel's Israel''s natural gas demand beginning mid-2013. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - fundamentals, following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gasfields gas fields discovered off Israel's coast during the past two years since 2009 have brightened Israel''s Israel's energy security outlook. The Tamar and Leviathan field was one fields were some of the world''s world's largest offshore natural gas finds this past decade, and decade. The massive Leviathan field is not due to come online until 2018, but production from the Tama field Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to meet all of Israel''s natural gas demand beginning mid-2013. contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

Israel has a technologically advanced market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. The economy has recovered better than most advanced, comparably sized economies, but slowing Slowing demand domestically and internationally, internationally and a strong shekel, have reduced forecasts for the next decade investment due to uncertainties caused by the 3% level. Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due expected to come online until 2018, no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute a 0.5% growth boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government's fiscal position. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among the its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also has weathered the 2011 Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects.
Slowing demand domestically domestic and internationally international demand and reduced decreased investment due to uncertainties caused by the Gaza conflict in summer 2014 have resulting from Israel’s uncertain security situation reduced GDP growth to about 2% an average of roughly 2.6% per year during 2014. 2014-15. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past in the last decade. The Political and regulatory issues have delayed the development of the massive Leviathan field is expected to come online no sooner than 2017, field, but production from Tamar provided a one percentage point 0.8% boost to Israel's GDP in 2013 and a 0.5% 0.3% boost in 2014. In mid-2011, public protests arose around income One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and rising high housing and commodity prices. prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees Government officials have called for reforms to boost the housing supply and has started splitting up to increase competition in the oligopolies banking sector to address some of these public grievances. Despite calls for reforms, the grievances but has maintained that it will not engage in deficit spending restricted housing supply continues to satisfy populist demands. Over impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers have kept food prices high through 2015.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% per year during 2014-15. the period 2014-16. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers have kept food prices high in 2016. Private consumption is expected to drive growth through 2015. 2017 with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% 2.8% per year during the period 2014-16. 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2017 2018, with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues, issues including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Since March 2020, economic growth has slowed compared to recent historical averages, but Israel's slump has been less severe than in other Middle Eastern countries because of its swift vaccine roll-out and diversified economic base. Between 2004 2016 and 2013, 2019, growth averaged nearly 5% 3.6% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered Israel's new government is hoping to pass the crisis country's first budget in two years, which, combined with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong global trade ties outside the Middle East insulated the economy from spillover effects. Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth would probably enable Israel to an average of roughly 2.8% per year during recover from economic challenges caused by the period 2014-17. COVID-19 pandemic.
Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, In 2020, Israel generates about 57% of its power from coal began exporting gas to Egypt and only 2.6% from renewable sources. Jordan.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. high. Private consumption is expected to drive growth through 2018, 2021, with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.