View source for Economy of Israel

{{Short description|None}}
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{{Use dmy dates|date=July 2024}}
{{Infobox economy
| country = Israel
| image = View of Diamond Exchange Center from Azrieli Center.jpg
| caption = The [[Diamond Exchange District]] in [[Ramat Gan]]
| currency = [[Israeli new shekel]] (ILS; {{lang |he|₪}})
| fixed exchange = 
| year = [[Calendar year]]
| organs = [[Asian Infrastructure Investment Bank|AIIB]], [[European Bank for Reconstruction and Development|EBRD]], [[Inter-American Development Bank|IADB]], [[International Chamber of Commerce|ICC]], [[International Monetary Fund|IMF]], [[Organisation for Economic Co-operation and Development|OECD]], [[World Trade Organization|WTO]] and others
| group = {{plainlist|
*[[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019 |archive-date=17 June 2019 |archive-url=https://web.archive.org/web/20190617091701/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |url-status=live }}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live }}</ref>}}
| population = {{increase}} 10,063,603 <ref name= IMF>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=436,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook database: April 2024 |publisher=[[International Monetary Fund]] |access-date=14 May 2024 |archive-date=14 May 2024 |archive-url=https://web.archive.org/web/20240514215625/https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=436,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |url-status=live }}</ref>
| gdp = {{plainlist|
*{{increase}} $583 billion (nominal, 2025)<ref name= IMF/>
*{{increase}} $565.88 billion ([[Purchasing power parity|PPP]], 2025)<ref name= IMF/>}}
| per capita = {{plainlist|
*{{Increase}} $57,379 (nominal, 2025)<ref name= IMF/>
*{{increase}} $55,850 ([[Purchasing power parity|PPP]], 2025)<ref name= IMF/>}}
| growth = {{plainlist|
*6.5%&nbsp;(2022)
*2.0%&nbsp;(2023)
*1.6%&nbsp;(2024)<ref name= IMF/>}}
| sectors = {{plainlist|
*[[Agriculture in Israel|Agriculture]]: 2.4%
*[[Industrial sector|Industry]]: 26.5%
*[[Service (economics)|Services]]: 69.5%
*(2017)<ref name= CIA>{{cite web |title= The World Factbook- Israel: Economy of Israel |publisher=[[Central Intelligence Agency]] (CIA) |url=https://www.cia.gov/the-world-factbook/countries/israel/ |access-date=22 February 2023 |archive-date=15 April 2024 |archive-url=https://web.archive.org/web/20240415083839/https://www.cia.gov/the-world-factbook/countries/israel/ |url-status=live }}</ref>}}
| components = 
| inflation = {{plainlist|
**3.1% (2022 est.)<ref>{{cite news | url=https://www.globes.co.il/news/article.aspx?did=1001402420 | title=האינפלציה בשיא של עשר שנים וחורגת מהיעד של בנק ישראל | newspaper=Globes | date=15 February 2022 | last1=סימון | first1=גיא בן | access-date=6 June 2022 | archive-date=20 June 2022 | archive-url=https://web.archive.org/web/20220620163319/https://www.globes.co.il/news/article.aspx?did=1001402420 | url-status=live }}</ref>
*4.2% (2023)
*2.4% (2024)<ref name= IMF/>}}
| poverty = 20.9% (2023)<ref>{{cite news |url=https://www.globes.co.il/news/article.aspx?did=1001266977 |title=דוח העוני 2017: פחות אי-שוויון, פחות עניים – אבל ישראל עדיין במקום הראשון בשיעור העניים |newspaper=Globes |date=31 December 2018 |access-date=29 June 2022 |last1=ברקת |first1=עמירם |archive-date=29 June 2022 |archive-url=https://web.archive.org/web/20220629070522/https://www.globes.co.il/news/article.aspx?did=1001266977 |url-status=live }}</ref>
| gini = 32.8 {{color|darkorange|medium}} (2021)<ref>{{cite web |title=Income inequality |url=https://data.oecd.org/chart/5Vuy |website=data.oecd.org |publisher=OECD |access-date=20 April 2020 |archive-date=30 July 2020 |archive-url=https://web.archive.org/web/20200730225843/https://data.oecd.org/chart/5Vuy |url-status=live }}</ref>
| hdi = {{plainlist|
*0.919 {{color|darkgreen|very high}} (2021)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=30 January 2021 |archive-date=19 March 2022 |archive-url=https://web.archive.org/web/20220319173759/http://hdr.undp.org/en/indicators/137506 |url-status=live }}</ref> ([[List of countries by Human Development Index|19th]])
*0.815 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI]] (2021)<ref>{{cite web |title=Inequality-adjusted HDI (IHDI) |url=http://hdr.undp.org/en/indicators/138806 |website=hdr.undp.org |publisher=[[United Nations Development Programme|UNDP]] |access-date=30 January 2021 |archive-date=25 June 2016 |archive-url=https://web.archive.org/web/20160625120421/http://hdr.undp.org/en/indicators/138806 |url-status=live }}</ref>}}
| labor = {{plainlist|
*4,065,500 (May 2020)<ref name= LFS/>
*59.0% employment rate (May 2020)<ref name= LFS/>}}
| occupations = {{plainlist|
*Agriculture: 1.1%
*Industry: 17.3%
*Services: 81.6%
*(2015)<ref name= CIA/>}}
| unemployment = {{plainlist|
*3.5% (May 2022)<ref name= LFS>{{cite web |url=https://www.cbs.gov.il/he/mediarelease/pages/2022/%D7%A0%D7%AA%D7%95%D7%A0%D7%99%D7%9D-%D7%9E%D7%A1%D7%A7%D7%A8-%D7%9B%D7%95%D7%97-%D7%90%D7%93%D7%9D-%D7%9C%D7%9E%D7%97%D7%A6%D7%99%D7%AA-%D7%94%D7%A8%D7%90%D7%A9%D7%95%D7%A0%D7%94-%D7%A9%D7%9C-%D7%97%D7%95%D7%93%D7%A9-%D7%9E%D7%90%D7%99-2022.aspx |website=cbs.gov.il |publisher=Central Bureau of Statistics |access-date=29 June 2022 |title=Oops, Something is wrong |archive-date=13 July 2022 |archive-url=https://web.archive.org/web/20220713213332/https://www.cbs.gov.il/he/mediarelease/pages/2022/%D7%A0%D7%AA%D7%95%D7%A0%D7%99%D7%9D-%D7%9E%D7%A1%D7%A7%D7%A8-%D7%9B%D7%95%D7%97-%D7%90%D7%93%D7%9D-%D7%9C%D7%9E%D7%97%D7%A6%D7%99%D7%AA-%D7%94%D7%A8%D7%90%D7%A9%D7%95%D7%A0%D7%94-%D7%A9%D7%9C-%D7%97%D7%95%D7%93%D7%A9-%D7%9E%D7%90%D7%99-2022.aspx |url-status=live }}</ref>
*6.0% youth unemployment (Q1-2020)<ref>{{cite web |title=Youth unemployment rate |url=https://www.cbs.gov.il/he/mediarelease/pages/2022/%D7%A0%D7%AA%D7%95%D7%A0%D7%99%D7%9D-%D7%9E%D7%A1%D7%A7%D7%A8-%D7%9B%D7%95%D7%97-%D7%90%D7%93%D7%9D-%D7%9C%D7%9E%D7%97%D7%A6%D7%99%D7%AA-%D7%94%D7%A8%D7%90%D7%A9%D7%95%D7%A0%D7%94-%D7%A9%D7%9C-%D7%97%D7%95%D7%93%D7%A9-%D7%9E%D7%90%D7%99-2022.aspx |website=cbs.gov.il |publisher=Central Bureau of Statistics |access-date=29 June 2022 |archive-date=13 July 2022 |archive-url=https://web.archive.org/web/20220713213332/https://www.cbs.gov.il/he/mediarelease/pages/2022/%D7%A0%D7%AA%D7%95%D7%A0%D7%99%D7%9D-%D7%9E%D7%A1%D7%A7%D7%A8-%D7%9B%D7%95%D7%97-%D7%90%D7%93%D7%9D-%D7%9C%D7%9E%D7%97%D7%A6%D7%99%D7%AA-%D7%94%D7%A8%D7%90%D7%A9%D7%95%D7%A0%D7%94-%D7%A9%D7%9C-%D7%97%D7%95%D7%93%D7%A9-%D7%9E%D7%90%D7%99-2022.aspx |url-status=live }}</ref>
*143,800 unemployed (May 2022)<ref name= LFS/>}}
| average gross salary = [[List of Asian countries by average wage|₪14,800 / €3,630 / $4,125]] monthly ({{year|date=April 2025}})
| average net salary = [[List of Asian countries by average wage|₪12,068 / €2,960 / $3,360]] monthly ({{year|date=April 2025}})
| industries = [[Science and technology in Israel|High-technology]] goods and services (including [[aviation]], [[Communications in Israel|communications]], telecommunications equipment, computer hardware and software, aerospace and defense contracting, [[Biomedical engineering|medical devices]], [[Optical fiber|fiber optics]], scientific instruments), pharmaceuticals, [[potash]] and [[phosphate]]s, metallurgy, [[Chemical industry|chemical products]], [[Plastics industry|plastics]], [[Diamond industry in Israel|diamond cutting]], financial services, [[petroleum refining]], [[Textile industry|textiles]]<ref>{{cite web |url=http://globaledge.msu.edu/countries/israel/tradestats |title=Israel: Trade Statistics |publisher=Global Edge |access-date=18 March 2013 |archive-date=4 August 2020 |archive-url=https://web.archive.org/web/20200804155359/https://globaledge.msu.edu/countries/israel/tradestats |url-status=live }}</ref>
| exports = $166 billion (2022 est.)<ref>{{Cite news |title=Reuters : Israel export 2022 |work=Reuters|date=25 December 2022 |url=https://www.reuters.com/markets/israel-exports-reach-record-more-than-160-billion-2022-2022-12-25/ |access-date=27 March 2023 |archive-date=27 March 2023 |archive-url=https://web.archive.org/web/20230327200558/https://www.reuters.com/markets/israel-exports-reach-record-more-than-160-billion-2022-2022-12-25/ |url-status=live }}</ref>
| export-goods = Cut diamonds, refined petroleum, pharmaceuticals, machinery and equipment, medical instruments, computer hardware and software, agricultural products, chemicals, textiles and apparel.<ref name= CIA/><ref name=
MIT>{{cite web |url=https://atlas.media.mit.edu/en/profile/country/isr/ |title=Israel |website=OEC |access-date=4 April 2018 |archive-date=7 June 2019 |archive-url=https://web.archive.org/web/20190607073631/https://atlas.media.mit.edu/en/profile/country/isr/ |url-status=dead }}</ref>
| export-partners = {{plainlist|
*{{flag|United States}} 26.4%
*{{flag|European Union}} 22.7%
*{{flag|China}} 7.19%
*{{flag|Palestinian territories}} 5.98%
*{{flag|United Kingdom}} 4.13%
*{{flag|India}} 3.99%
*{{flag|Turkey}} 3.03%
*(2022)<ref>{{cite web |title=Where does Israel export to? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/export/isr/show/all/2022 |publisher=[[The Observatory of Economic Complexity]] |access-date=3 August 2024}}</ref>}}
| imports = $108.26 billion (2019 est.)<ref name= CIA/>
| import-goods = Raw materials, military equipment, motor vehicles, investment goods, rough diamonds, crude petroleum, grain, consumer goods.<ref name= CIA/><ref name= MIT/>
| import-partners = {{plainlist|
*{{flag|European Union}} 31.2%
*{{flag|China}} 13.9%
*{{flag|United States}} 11.2%
*{{flag|Turkey}} 6.75%
*{{flag|India}} 4.69%
*{{flag|Switzerland}} 3.76%
*(2022)<ref>{{cite web |title=Where does Israel import from? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/import/isr/show/all/2022 |publisher=[[The Observatory of Economic Complexity]] |access-date=3 August 2024}}</ref>}}
| FDI = $28.7&nbsp;billion (2022 est.; [[List of countries by received FDI|19th]])
$82.82&nbsp;billion (2011 est.)
| gross external debt = $97.463&nbsp;billion (July 2019 est.)
| debt = 59.8% of GDP (2018 est.; [[List of countries by public debt|28th]])
| balance = −3% of GDP (2011 est.; [[List of sovereign states by current account balance|105th]])
| revenue = $126.35&nbsp;billion (2022 est.)<ref>{{cite web|title=For first time in 35 years, Israel posts budget surplus driven by higher tax revenue|url=https://www.timesofisrael.com/for-first-time-in-35-years-israel-posts-budget-surplus-driven-by-higher-tax-revenue/|author=Sharon Wrobel|website=[[The Times of Israel]] |date=2023-01-11|access-date=12 December 2023|archive-date=12 December 2023|archive-url=https://web.archive.org/web/20231212114520/https://www.timesofisrael.com/for-first-time-in-35-years-israel-posts-budget-surplus-driven-by-higher-tax-revenue/|url-status=live}}</ref>
| expenses = $123.73&nbsp;billion (2022 est.)
| aid = {{plainlist|
*'''Received'''- 
*$4.81 billion 
*as [[United States foreign aid|US foreign aid]]<ref>{{cite web|title=Total US Foreign Aid to Israel|url=https://www.jewishvirtuallibrary.org/total-u-s-foreign-aid-to-israel-1949-present|website=jewishvirtuallibrary.org|access-date=14 November 2021|archive-date=21 January 2017|archive-url=https://web.archive.org/web/20170121095116/http://www.jewishvirtuallibrary.org/jsource/US-Israel/U.S._Assistance_to_Israel1.html|url-status=live}}</ref>
*'''Donated'''-
*$0.28 billion {{citation needed|date=November 2021}}
*as [[Israeli foreign aid]]}}
| credit = {{plainlist|
*[[Standard & Poor's]]:
*AA−
*Outlook: Negative<ref>{{cite news|url=https://www.timesofisrael.com/credit-scoring-agency-gives-israel-its-highest-ever-rating/|title=Credit scoring agency gives Israel its highest-ever rating|access-date=10 August 2018|archive-date=15 May 2020|archive-url=https://web.archive.org/web/20200515061309/https://www.timesofisrael.com/credit-scoring-agency-gives-israel-its-highest-ever-rating/|url-status=live}}</ref>
*[[Moody's Investors Service|Moody's]]:
*A1
*Outlook: Negative<ref>{{cite web|url=https://moodys.com/credit-ratings/Israel-Government-of-credit-rating-423305|title=Credit Rating – Moody's|website=moodys.com|access-date=10 August 2018|archive-url=https://web.archive.org/web/20180210071124/https://www.moodys.com/credit-ratings/Israel-Government-of-credit-rating-423305|archive-date=10 February 2018|url-status=dead}}</ref>
*[[Fitch Group|Fitch]]:
*A+
*Outlook: Negative<ref>{{cite news|url=https://www.reuters.com/article/fitch-affirms-israel-at-a-outlook-stable/fitch-affirms-israel-at-a-outlook-stable-idUSFit2kDckr|title=Fitch Affirms Israel at 'A+'; Outlook Stable|archive-url=https://web.archive.org/web/20180810205711/https://www.reuters.com/article/fitch-affirms-israel-at-a-outlook-stable/fitch-affirms-israel-at-a-outlook-stable-idUSFit2kDckr|archive-date=10 August 2018|work=Reuters|access-date=10 August 2018}}</ref>}}
| reserves = $204.669 billion (January 2024 est.;<ref>{{cite web|url=https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/6-5-21.aspx|access-date=1 April 2021|title=Bank of Israel – Press Releases – Foreign Exchange Reserves at the Bank of Israel, April 2021|archive-date=6 May 2021|archive-url=https://web.archive.org/web/20210506205807/https://www.boi.org.il/en/NewsAndPublications/PressReleases/Pages/6-5-21.aspx|url-status=dead}}</ref> [[List of countries by foreign-exchange reserves|15th]])
| cianame = israel
| spelling = Israel
}}
The '''economy of Israel''' is a highly [[Economic development|developed]] [[Market economy|free-market economy]].<ref name= Chua219>{{cite book |last=Chua |first=Amy |title=World on Fire |publisher=Knopf Doubleday Publishing |year=2003 |isbn=978-0385721868 |pages= 219–220 |url-access= registration |url=https://archive.org/details/worldonfirehowex00chua_0/page/219 }}</ref><ref name= CIA/><ref>{{cite web|url=https://www.heritage.org/index/ranking|title=Country Rankings: World & Global Economy Rankings on Economic Freedom|website=heritage.org|access-date=29 October 2019|archive-date=5 July 2018|archive-url=https://web.archive.org/web/20180705085015/https://www.heritage.org/index/ranking|url-status=unfit}}</ref><ref>{{cite web|url=https://www.luzzatto.co.il/en/learn/thought-pieces/the-israeli-innovation-economy|title=Israel's shift towards a knowledge-based economy|access-date=29 October 2019|archive-date=31 July 2020|archive-url=https://web.archive.org/web/20200731005537/https://www.luzzatto.co.il/en/learn/thought-pieces/the-israeli-innovation-economy|url-status=live}}</ref><ref>{{Cite web |title=Top 15 Most Advanced Countries in the World |url=https://finance.yahoo.com/news/top-15-most-advanced-countries-041038286.html |access-date=2023-03-04 |website=finance.yahoo.com |date=4 December 2022|archive-date=10 January 2023 |archive-url=https://web.archive.org/web/20230110012152/https://finance.yahoo.com/news/top-15-most-advanced-countries-041038286.html |url-status=live }}</ref> The prosperity of [[Israel]]'s advanced economy allows the country to have a sophisticated [[Welfare in Israel|welfare state]], a powerful modern [[Military of Israel|military]] said to possess a [[Israel and nuclear power|nuclear-weapons capability]] with a full [[nuclear triad]], modern infrastructure equivalent to developed countries, and a [[Silicon Wadi|high-technology sector]] competitively on par with Silicon Valley.<ref name= Chua219/> It has the second-largest number of startup companies in the world after the United States,<ref>{{cite book |title=Intellectual Capital for Communities: Nations, Regions, and Cities |last=Bounfour |first=Ahmed |author2=Edvinsson, Leif |year=2005 |publisher=Butterworth-Heinemann |isbn=0-7506-7773-2 |page=47 (368 pages) }}</ref>{{update inline|date=March 2021}} and the third-largest number of [[List of Israeli companies quoted on the Nasdaq|NASDAQ-listed companies]] after the U.S. and China.<ref>{{cite magazine | url=https://www.forbes.com/sites/richardbehar/2016/05/11/inside-israels-secret-startup-machine/ | title=Inside Israel's Secret Startup Machine | magazine=Forbes | date=11 May 2016 | access-date=30 October 2016 | author=Richard Behar | archive-date=9 December 2019 | archive-url=https://web.archive.org/web/20191209181125/https://www.forbes.com/sites/richardbehar/2016/05/11/inside-israels-secret-startup-machine/ | url-status=live }}</ref> American companies, such as Intel,<ref>{{cite news |url=http://www.jpost.com/Business/BusinessNews/Article.aspx?id=52876 |newspaper=The Jerusalem Post |date=27 February 2007 |access-date=20 March 2012 |title=Intel to expand Jerusalem R&D |last=Krawitz |first=Avi |archive-date=17 January 2013 |archive-url=https://web.archive.org/web/20130117102214/http://www.jpost.com/Business/BusinessNews/Article.aspx?id=52876 |url-status=live }}</ref> Microsoft,<ref>{{cite web|url=http://www.microsoftrnd.co.il/about/leadership |publisher=Microsoft |access-date=19 March 2012 |title=Microsoft Israel R&D center: Leadership |quote=Avi returned to Israel in 1991, and established the first Microsoft R&D Center outside the US&nbsp;... |url-status=dead |archive-url=https://web.archive.org/web/20120313223906/http://www.microsoftrnd.co.il/about/leadership |archive-date=13 March 2012  }}</ref> and Apple,<ref name= Apple1>{{cite news|last=Shelach|first=Shmulik|title=Apple to set up Israel development center|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000706928|access-date=10 February 2013|newspaper=[[Globes (newspaper)|Globes]]|date=14 December 2011|archive-date=1 November 2013|archive-url=https://web.archive.org/web/20131101032416/http://www.globes.co.il/serveen/globes/docview.asp?did=1000706928|url-status=live}}</ref><ref name= Apple2>{{cite news|last=Shelach|first=Shmulik|title=Apple opens Ra'anana development center|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000820961|access-date=10 February 2013|newspaper=[[Globes (newspaper)|Globes]]|date=10 February 2013|archive-date=1 November 2013|archive-url=https://web.archive.org/web/20131101033756/http://www.globes.co.il/serveen/globes/docview.asp?did=1000820961|url-status=live}}</ref> built their first overseas research and development facilities in Israel. More than 400 high-tech multi-national corporations, such as [[IBM]], [[Google]], [[Hewlett-Packard]], [[Cisco Systems]], [[Facebook]] and [[Motorola]] have opened [[List of multinational companies with research and development centres in Israel|R&D centers throughout the country]].<ref name= NYT06>{{cite news |title=Berkshire Announces Acquisition |work=The New York Times |date=6 May 2006 |access-date=15 May 2010 |url=https://query.nytimes.com/gst/fullpage.html?res=9C02E7DB1F3FF935A35756C0A9609C8B63 |archive-date=10 October 2017 |archive-url=https://web.archive.org/web/20171010225021/http://query.nytimes.com/gst/fullpage.html?res=9C02E7DB1F3FF935A35756C0A9609C8B63 |url-status=live }}</ref> As of 2025, the [[List of countries by past and projected GDP (nominal)|IMF estimated]] Israel has the 25th largest economy in the world by nominal GDP, and one of the biggest economies in the Middle East.[https://www.imf.org/external/datamapper/PPPGDP@WEO/ISR]

The country's major economic sectors are high-technology and industrial manufacturing. The [[Israel diamond industry|Israeli diamond industry]] is one of the world's centers for [[diamond cutting]] and polishing, amounting to 21% of all exports in 2017.<ref name ="OEC">{{cite web|url=https://atlas.media.mit.edu/en/profile/country/isr/|title=OEC – Israel (ISR) Exports, Imports, and Trade Partners|website=atlas.media.mit.edu|access-date=19 January 2019|archive-date=7 June 2019|archive-url=https://web.archive.org/web/20190607073631/https://atlas.media.mit.edu/en/profile/country/isr/|url-status=dead}}</ref> As the country is relatively poor in natural resources, it consequently depends on imports of petroleum, raw materials, wheat, motor vehicles, uncut diamonds and production inputs. Nonetheless, the country's nearly total reliance on energy imports may change in the future as recent discoveries of [[Natural gas in Israel|natural gas reserves off its coast]] and the [[Solar power in Israel|Israeli solar energy industry]] have taken a leading role in Israel's energy sector.<ref name= Gas1/><ref name= Gas/>{{update inline|date=June 2025}}

Israel's quality [[Higher education in Israel|higher education]] and the establishment of a highly motivated and educated populace is largely responsible for ushering in the country's high technology boom and rapid economic development by regional standards.<ref>{{cite web |url=http://monitor.icef.com/2014/03/ambitious-israeli-students-look-to-top-institutions-abroad/ |title=Ambitious Israeli students look to top institutions abroad |publisher=ICEF |date=10 March 2014 |access-date=20 January 2015 |author=David Adler |archive-date=4 June 2023 |archive-url=https://web.archive.org/web/20230604153003/https://monitor.icef.com/2014/03/ambitious-israeli-students-look-to-top-institutions-abroad/ |url-status=live }}</ref> The country has developed a strong educational infrastructure and a high-quality business startup incubation system for promoting cutting edge new ideas to create value-driven goods and services. These developments have allowed the country to create a high concentration of high-tech companies across the country's regions. These companies are financially backed by a strong [[Venture capital in Israel|venture capital industry]].<ref name="Karr">{{cite web |url=https://www.huffingtonpost.com/rabbi-steven-carr-reuben-phd/imagine-a-world-without-i_1_b_5706935.html |title=Imagine a World Without Israel – Part 2 |work=Huffington Post |date=24 October 2014 |access-date=29 October 2016 |author=Karr, Steven |archive-date=18 November 2017 |archive-url=https://web.archive.org/web/20171118121211/https://www.huffingtonpost.com/rabbi-steven-carr-reuben-phd/imagine-a-world-without-i_1_b_5706935.html |url-status=live }}</ref> Its central high technology hub, the "[[Silicon Wadi]]", is considered second in importance only to its [[Silicon Valley|Californian counterpart]].<ref>Chua (2003), p. [https://archive.org/details/worldonfirehowex00chua_0/page/31 31].</ref><ref name= moital>{{cite web |url=http://www.moital.gov.il/NR/rdonlyres/C80F623B-65AD-41E3-AA8D-98A1B8A2D28A/0/intellectualcapital.pdf |title=The Intellectual Capital of the State of Israel |publisher=State of Israel Ministry of Industry, Trade, and Labor |date=November 2007 |access-date=18 March 2013 |page=27 |archive-date=16 March 2016 |archive-url=https://web.archive.org/web/20160316082942/http://www.moital.gov.il/NR/rdonlyres/C80F623B-65AD-41E3-AA8D-98A1B8A2D28A/0/intellectualcapital.pdf |url-status=dead }}</ref><ref name= tech>{{cite news |title=Israel's technology cluster |url=http://www.economist.com/node/10881264 |newspaper=The Economist |date=19 March 2008 |access-date=17 October 2012 |archive-date=2 August 2017 |archive-url=https://web.archive.org/web/20170802152818/http://www.economist.com/node/10881264 |url-status=live }}</ref><ref>{{cite news |title=Israeli innovators build new 'Silicon Valley' |first=Katia |last=Dolmadjian |url=https://www.google.com/hostednews/afp/article/ALeqM5j-gDRug6JWGMEkwHh7h9Li7gB8fA |agency=Agence France-Presse |date=28 June 2011 |access-date=17 October 2012 |archive-date=22 February 2014 |archive-url=https://web.archive.org/web/20140222233312/http://www.google.com/hostednews/afp/article/ALeqM5j-gDRug6JWGMEkwHh7h9Li7gB8fA |url-status=dead }}</ref> Numerous Israeli companies have been acquired by global multinational corporations for their profit-driven technologies in addition to their reliable and quality corporate personnel.<ref name= STEM>{{cite web |url=http://www.jfunders.org/sites/default/files/docs/events/briefing_book_final.pdf |archive-url=https://www.webcitation.org/6GdtMwljK?url=http://www.jfunders.org/sites/default/files/docs/events/briefing_book_final.pdf |url-status=dead |archive-date=15 May 2013 |title=FUNDING THE FUTURE: Advancing STEM in Israeli Education |publisher=STEM Israel |date=4 December 2012 |access-date=18 March 2013 }}</ref>

In its early decades, the Israeli economy was largely state-controlled and shaped by [[Social democracy|social democratic]] ideas. In the 1970s and 1980s, the economy underwent a series of [[Free market|free-market]] reforms and was gradually [[Economic liberalization|liberalized]].<ref name= Gradus>{{cite book|author1=Yehuda Gradus|author2=Shaul Krakover|author3=Eran Razin|title=The Industrial Geography of Israel|url=https://books.google.com/books?id=9nKIAgAAQBAJ&pg=PT13|date=10 April 2006|publisher=Routledge|isbn=978-1-134-97632-4|pages=13–61|access-date=26 July 2020|archive-date=26 July 2020|archive-url=https://web.archive.org/web/20200726110818/https://books.google.com/books?id=9nKIAgAAQBAJ&pg=PT13|url-status=live}}</ref> In the past three decades, the economy has grown considerably, though [[Lists of countries by GDP per capita|GDP per capita]] has increased faster than wages.<ref name = "avda">{{cite report|url=https://adva.org/en/social-report-2020/|title=Israel – A Social Report 2020: The Public Interest Needs to Return to Center Stage|author=Shlomo Swirski|author2=Etty Konor|author3=Aviv Lieberman|publisher=[[Avda Center]]|date=20 February 2020|access-date=26 July 2020|archive-date=26 July 2020|archive-url=https://web.archive.org/web/20200726111939/https://adva.org/en/social-report-2020/|url-status=live}}</ref> Israel is the most [[Developed country|developed]] and advanced country in [[West Asia]],<ref>{{Cite web |title=Top 15 Most Advanced Countries in the World |url=https://finance.yahoo.com/news/top-15-most-advanced-countries-041038286.html |access-date=2023-01-10 |website=finance.yahoo.com |date=4 December 2022|archive-date=10 January 2023 |archive-url=https://web.archive.org/web/20230110012152/https://finance.yahoo.com/news/top-15-most-advanced-countries-041038286.html |url-status=live }}</ref><ref>{{cite book |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2021-22pdf_1.pdf |title=Human Development Report 2021-22: Uncertain Times, Unsettled Lives: Shaping our Future in a Transforming World |date=8 September 2022 |publisher=United Nations Development Programme |isbn=978-9-211-26451-7 |pages=272–276 |access-date=8 September 2022 |archive-url=https://web.archive.org/web/20220908114232/http://hdr.undp.org/system/files/documents/global-report-document/hdr2021-22pdf_1.pdf |archive-date=8 September 2022 }}</ref> possessing the 17th largest [[Foreign exchange reserves|foreign-exchange reserves]] in the world and the highest average [[List of countries by wealth per adult|wealth per adult]] in the Middle East (10th worldwide by [[List of countries by financial assets per capita|financial assets per capita]]).<ref name= CIA/><ref>{{Cite web |title=Global Wealth Report |url=https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html |access-date=2023-02-02 |website=Credit Suisse|archive-date=18 July 2019 |archive-url=https://web.archive.org/web/20190718152440/https://www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html |url-status=live }}</ref><ref name= CS>{{Cite web |title=Global Wealth Databook 2022 |url=https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-databook-2022.pdf |url-status=live |archive-url=https://web.archive.org/web/20221019132159/https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-databook-2022.pdf |archive-date=19 October 2022 |access-date=19 October 2022 |publisher=[[Credit Suisse]] }} Financial assets by adult in selected countries on page 109.</ref> Israel is the 9th largest arm exporter in the world<ref>{{Cite web |title=SIPRI Arms Transfers Database |url=https://armstrade.sipri.org/armstrade/page/toplist.php |access-date=14 June 2022 |website=sipri.org |archive-date=19 December 2018 |archive-url=https://web.archive.org/web/20181219211545/http://armstrade.sipri.org/armstrade/page/toplist.php |url-status=live }}</ref> and has the highest number of [[List of countries by number of billionaires|billionaires in the Middle East]], ranked 18th in the world.<ref>{{Cite web |last=Chang |first=Richard J. |title=The Countries With The Most Billionaires 2022 |url=https://www.forbes.com/sites/richardjchang/2022/04/05/the-countries-with-the-most-billionaires-2022/ |access-date=2023-03-29 |website=Forbes|archive-date=29 March 2023 |archive-url=https://web.archive.org/web/20230329172103/https://www.forbes.com/sites/richardjchang/2022/04/05/the-countries-with-the-most-billionaires-2022/ |url-status=live }}</ref> In recent years, Israel has had among the highest GDP growth rates within the developed world along with Ireland.<ref>{{Cite web |title=Israel Economic Snapshot – OECD |url=https://www.oecd.org/economy/israel-economic-snapshot/ |access-date=2023-02-10 |website=oecd.org |archive-date=21 January 2023 |archive-url=https://web.archive.org/web/20230121150138/https://www.oecd.org/economy/israel-economic-snapshot/ |url-status=live }}</ref> ''[[The Economist]]'' ranked Israel as the 4th most successful economy among developed countries for 2022.<ref>{{Cite web |title=Israel ranked 4th-best-performing economy among OECD countries in 2022 {{!}} The Times of Israel |url=https://www.timesofisrael.com/israel-ranked-4th-best-performing-economy-among-oecd-countries-in-2022/amp/ |access-date=2023-02-08 |website=The Times of Israel |archive-date=8 February 2023 |archive-url=https://web.archive.org/web/20230208014259/https://www.timesofisrael.com/israel-ranked-4th-best-performing-economy-among-oecd-countries-in-2022/amp/ |url-status=live }}</ref> The IMF estimated Israel's GDP at US$564 billion and its GDP per capita at US$58,270 in 2023 (13th highest in the world), a figure comparable to other highly developed countries.<ref>{{Cite web |title=IMF, Israel 2023 |url=https://www.imf.org/external/datamapper/profile/ISR |access-date=29 January 2023 |archive-date=12 October 2022 |archive-url=https://web.archive.org/web/20221012194814/https://www.imf.org/external/datamapper/profile/ISR |url-status=live }}</ref> Israel was invited to join the [[OECD]] in 2010.<ref name= OECD>{{cite web |url=http://www.oecd.org/israel/israelsaccessiontotheoecd.htm |title=Israel's accession to the OECD |publisher=Organisation for Economic Co-operation and Development |access-date=15 October 2012 |archive-date=24 August 2012 |archive-url=https://web.archive.org/web/20120824200811/http://www.oecd.org/israel/israelsaccessiontotheoecd.htm |url-status=live }}</ref> Israel has also signed [[free trade agreement]]s with the European Union, the United States, the [[European Free Trade Association]], Turkey, Mexico, Canada, Ukraine, Jordan, and Egypt. In 2007, Israel became the first non-Latin-American country to sign a free trade agreement with the [[Mercosur]] trade bloc.<ref>{{citation |url=http://www.tamas.gov.il/NR/exeres/A01F7E09-0217-47F9-B04F-5D0DEE3D91FB.htm |title=Israel's Free Trade Area Agreements |publisher=Tamas |place=IL |access-date=8 September 2011 |url-status=dead |archive-url=https://web.archive.org/web/20111003060204/http://www.tamas.gov.il/NR/exeres/A01F7E09-0217-47F9-B04F-5D0DEE3D91FB.htm |archive-date=3 October 2011  }}</ref><ref>{{cite web |url=http://www.mfa.gov.il/MFA/MFA+events/Around+the+world/Israel+signs+free+trade+agreement+with+MERCOSUR+18-Dec-2007.htm |title=Israel signs free trade agreement with Mercosur |date=19 December 2007 |publisher=Israel Ministry of Foreign Affairs |access-date=15 October 2012 |archive-date=4 June 2012 |archive-url=https://archive.today/20120604095315/http://www.mfa.gov.il/MFA/MFA+events/Around+the+world/Israel+signs+free+trade+agreement+with+MERCOSUR+18-Dec-2007.htm |url-status=live }}</ref>{{toclimit|3}}

==History==
[[File:GPD per capita development of Israel.jpg|thumb|right|Change in per capita GDP of Israel since 1950. Figures are inflation-adjusted to 2011 International dollars.]]
The British [[Mandate for Palestine]] that came into effect in 1920 aimed at restricting land purchases by Jewish immigrants. For this reason, the Jewish population was initially more urban and had a higher share in industrial occupations. This particular development resulted economically in one of the few growth miracles of the region whereby the structure of firms was determined mainly by private businessmen rather than by the government.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=227|isbn=9781107507180}}</ref>
The first survey of the [[Dead Sea]] in 1911, by the Russian Jewish businessman and engineer [[Moshe Novomeysky]], led to the establishment of Palestine Potash Ltd. in 1930, later renamed the [[Dead Sea Works]].<ref>[https://books.google.com/books?id=Sdje6L7rrRsC&pg=PA72 ''The political economy of Israel: From ideology to stagnation''] {{Webarchive|url=https://web.archive.org/web/20230405213027/https://books.google.com/books?id=Sdje6L7rrRsC&pg=PA72 |date=5 April 2023 }}, Yakir Plessner, p.72. Google Books. Retrieved on 8 September 2011.</ref> In 1923, the businessman and hydraulic engineer [[Pinhas Rutenberg]] was granted an exclusive concession for the production and distribution of electric power. He founded the Palestine Electric Company, later the [[Israel Electric Corporation]].<ref>{{cite magazine |title=The Seventh Dominion? |url=http://www.time.com/time/magazine/article/0,9171,737478,00.html |archive-url=https://web.archive.org/web/20071001004224/http://www.time.com/time/magazine/article/0,9171,737478,00.html |url-status=dead |archive-date=1 October 2007 |magazine=Time |date=4 March 1929 |access-date=24 May 2007}}</ref> Between 1920 and 1924, some of the country's largest factories were established, including the Shemen Oil Company, the Societe des Grand Moulins, the Palestine Silicate Company and the Palestine Salt Company.<ref>{{cite book|url=https://books.google.com/books?id=dEm8hueO88QC&q=lodzia+textile&pg=PA177|title=The Roots of Separatism in Palestine: British Economic Policy, 1920–1929|first=Barbara Jean|last=Smith|date=19 January 1993|publisher=Syracuse University Press|access-date=19 January 2019|via=Google Books|isbn=9780815625780}}</ref>

In 1937, there were 86 spinning and weaving factories in the country, employing a workforce of 1,500. Capital and technical expertise were supplied by Jewish professionals from Europe. The [[ATA (Israeli company)|Ata textile plant]] in [[Kiryat Ata]], which went on to become an icon of the Israeli textile industry, was established in 1934.<ref>Tsur, Doron. (12 October 2010) [http://www.haaretz.com/print-edition/business/when-the-guns-fell-silent-1.321522 "When the guns fell silent"] {{Webarchive|url=https://web.archive.org/web/20171022193526/https://www.haaretz.com/print-edition/business/when-the-guns-fell-silent-1.321522 |date=22 October 2017 }}, ''Haaretz''. Retrieved on 8 September 2011.</ref> In 1939, the cornerstone was laid for one of the kibbutz industry's first factories: the Naaman brick factory, which supplied the growing need for construction materials.<ref>{{cite news|url=https://www.ynetnews.com/articles/0,7340,L-3671806,00.html|title=Naaman factory: Settlement's building blocks|date=15 February 2009|website=Ynetnews|last1=Man|first1=Nadav|access-date=27 August 2020|archive-date=25 February 2021|archive-url=https://web.archive.org/web/20210225135630/https://www.ynetnews.com/articles/0,7340,L-3671806,00.html|url-status=live}}</ref>

The textile underwent rapid development during World War II, when supplies from Europe were cut off while local manufacturers were commissioned for army needs. By 1943, the number of factories had grown to 250, with a workforce of 5,630, and output increased tenfold.<ref>Encyclopaedia Judaica</ref>

From 1924, trade fairs were held in Tel Aviv. The [[Levant Fair]] was inaugurated in 1932.<ref>[http://lib.stanford.edu/eliasaf-robinson-tel-aviv-collection/city-work-and-prosperity-levant-fair "City of Work and Prosperity": The Levant Fair] {{webarchive|url=https://web.archive.org/web/20131224114205/http://lib.stanford.edu/eliasaf-robinson-tel-aviv-collection/city-work-and-prosperity-levant-fair |date=24 December 2013 }}</ref>

===After independence===
After statehood, Israel faced a deep economic crisis. As well as having to recover from the devastating effects of the [[1948 Arab–Israeli War]], it also had to absorb hundreds of thousands of Jewish refugees from Europe and almost a million from the Arab world. Israel was financially overwhelmed and faced a deep economic crisis, which led to a policy of [[Austerity in Israel|austerity]] from 1949 to 1959. Unemployment was high, and foreign currency reserves were scarce.<ref name= shilumim>{{cite web |url=http://www.mezia.co.il/articles/?idmsg=1663 |script-title=he:הויכוח סביב הסכם השילומים |language=he |access-date=15 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20111217093126/http://mezia.co.il/articles/?idmsg=1663 |archive-date=17 December 2011  }}</ref>

In 1952, Israel and [[West Germany]] signed an [[Reparations Agreement between Israel and West Germany|agreement]] stipulating that West Germany was to pay Israel to compensate for Jewish property stolen by the Nazis, material claims during the Holocaust, and absorption of refugees as a result. Over the next 14 years, West Germany paid Israel 3 billion [[Deutsche Mark|marks]] (around US$714 million according to 1953–1955 conversion rates<ref>{{Cite web|url=https://fx.sauder.ubc.ca/etc/USDpages.pdf|title=PACIFIC Exchange Rate Service|access-date=19 August 2023|archive-date=8 January 2023|archive-url=https://web.archive.org/web/20230108091347/https://fx.sauder.ubc.ca/etc/USDpages.pdf|url-status=live}}</ref> or equivalent to approximately US$7 billion in modern currency). The reparations became a decisive part of Israel's income, comprising as high as 87.5% of Israel's income in 1956.<ref name= shilumim/> Israel never had any [[East Germany–Israel relations|formal diplomatic relations]] with [[East Germany]]. In 1950, the Israeli government launched [[State of Israel Bonds|Israel Bonds]] for [[American Jews|American]] and [[History of the Jews in Canada|Canadian Jews]] to buy. In 1951, the final results of the bonds program exceeded $52 million. Additionally, many American Jews made private donations to Israel, which in 1956 were thought to amount to $100 million a year. In 1957, bond sales amounted to 35% of Israel's special development budget.<ref>{{cite magazine|url=http://www.time.com/time/magazine/article/0,9171,865644,00.html |archive-url=https://web.archive.org/web/20111101013614/http://www.time.com/time/magazine/article/0,9171,865644,00.html |url-status=dead |archive-date=1 November 2011 |magazine=Time |title=ORGANIZATIONS: Dollars for Israel |date=21 January 1957}}</ref> Later in the century, Israel became significantly reliant on economic [[United States aid to Israel|aid from the United States]],<ref>{{cite web|last=Mark|first=Clyde|title=Israel: US Foreign Assistance|url=https://fas.org/man/crs/IB85066.pdf|publisher=[[Congressional Research Service]]|access-date=19 July 2012|date=12 July 2004|archive-date=17 March 2016|archive-url=https://web.archive.org/web/20160317033210/https://fas.org/man/crs/IB85066.pdf|url-status=dead}}</ref> a country that also became Israel's most important source of political support internationally.

The proceeds from these sources were invested in industrial and agricultural development projects, which allowed Israel to become economically self-sufficient. Among the projects made possible by the aid was the [[Orot Rabin|Hadera power plant]], the [[Dead Sea Works]], the [[National Water Carrier]], [[port]] development in [[Haifa]], [[Ashdod]], and [[Eilat]], [[desalination]] plants, and national infrastructure projects.

After statehood, priority was given to establishing industries in areas slated for development, among them, [[Lachish]], [[Ashkelon]], the [[Negev]] and [[Galilee]]. The expansion of Israel's textile industry was a consequence of the development of cotton growing as a profitable agricultural branch. By the late 1960s, textiles were one of the largest industrial branches in Israel, second only to the foodstuff industry. Textiles constituted about 12% of industrial exports, becoming the second-largest export branch after [[diamond cutting|polished]] diamonds.<ref name= JVL>[https://www.jewishvirtuallibrary.org/jsource/judaica/ejud_0002_0019_0_19772.html "Textiles"] {{Webarchive|url=https://web.archive.org/web/20161111030658/https://www.jewishvirtuallibrary.org/jsource/judaica/ejud_0002_0019_0_19772.html |date=11 November 2016 }}, [[Jewish Virtual Library]]. Retrieved on 8 September 2011.</ref> In the 1990s, cheap East Asian labor decreased the profitability of the sector. Much of the work was subcontracted to 400 Israeli Arab sewing shops. As these closed down, Israeli firms, among them Delta, Polgat, Argeman and Kitan, began doing their sewing work in Jordan and Egypt, usually under the [[Qualifying Industrial Zone|QIZ]] arrangement. In the early 2000s, Israeli companies had 30 plants in Jordan. Israeli exports reached $370&nbsp;million a year, supplying such retailers and designers as [[Marks & Spencer]], [[Gap (clothing retailer)|The Gap]], [[Victoria's Secret]], [[Walmart]], [[Sears]], [[Ralph Lauren]], [[Calvin Klein]], and [[Donna Karan]].<ref name= JVL/>

In its first two decades of existence, Israel's strong commitment to development led to economic growth rates that exceeded 10% annually. Between 1950 and 1963, the expenditure among wage-earner's families rose 97% in real terms.<ref>The Challenge of Israel by Misha Louvish</ref> Between 1955 and 1966, per capita consumption rose by 221%.<ref>Israel: A History by Anita Shapira</ref> In the 1970s, investment began to shift from agriculture and basic infrastructure to industry and defense programs.<ref name=":4">Bay Area Economic Institute, ''Silicon Valley to Silicon Wadi, California's Economic ties to Israel'', October 2021 https://www.bayareaeconomy.org/files/pdf/SiliconValleyToSiliconWadi.pdf</ref> These latter investments would later become the foundation of Israel's technology sector.<ref name=":4" /> The years after the 1973 [[Yom Kippur War]] were a lost decade economically, as growth stalled, inflation soared and government expenditures rose significantly. Also worthy of mention is the 1983 [[Bank stock crisis (Israel 1983)|Bank stock crisis]]. By 1984, the economic situation became almost catastrophic with inflation reaching an annual rate close to 450% and projected to reach over 1000% by the end of the following year. However, the successful [[Economic Stabilization Plan (Israel 1985)|economic stabilization plan implemented in 1985]]<ref>[https://www.knesset.gov.il/review/ReviewPage2.aspx?kns=11&lng=3 Eleventh Knesset] {{Webarchive|url=https://web.archive.org/web/20151025065145/http://www.knesset.gov.il/review/ReviewPage2.aspx?kns=11&lng=3 |date=25 October 2015 }}. Knesset.gov.il. Retrieved on 8 September 2011.</ref> and the subsequent introduction of market-oriented structural reforms<ref>{{cite journal |first1=Michael |last1=Bruno |first2=Patrick |last2=Minford |title=Sharp Disinflation Strategy: Israel 1985 |journal=[[Economic Policy (journal)|Economic Policy]] |volume=1 |issue=2 |year=1986 |pages=379–407 |jstor=1344561 |doi=10.2307/1344561 }}</ref><ref>[https://www.jewishvirtuallibrary.org/jsource/isdf/text/Melnick_Mealem1.html Israel's Economy: 1986–2008] {{Webarchive|url=https://web.archive.org/web/20170107172311/https://www.jewishvirtuallibrary.org/jsource/isdf/text/Melnick_Mealem1.html |date=7 January 2017 }}, Rafi Melnick and Yosef Mealem</ref> reinvigorated the economy and paved the way for its rapid growth in the 1990s and became a model for other countries facing similar economic crises.<ref>{{cite journal |last=Fischer |first=Stanley |year=1987 |title=The Israeli Stabilization Program, 1985–86 |journal=The American Economic Review |volume=77 |issue=2 |pages=275–278 |publisher=American Economic Association |jstor=1805463}}</ref>

[[File:Money IL WV.JPG|thumb|[[Israeli new shekel]] banknotes and coins]]
Two developments have helped to transform Israel's economy since the beginning of the 1990s. The first is waves of [[Aliyah|Jewish immigration]], predominantly from the countries of the former [[Soviet Union|USSR]], that has brought [[Russian immigration to Israel in the 1990s|over one million new citizens to Israel]]. These new Soviet Jewish immigrants, many of them highly educated, had a wellspring of scientific and technical expertise to help spur Israel's burgeoning technology sector, now constitute some 15% of Israel's population.<ref>{{cite news |last=Sherwood |first=Harriet |title=Israel's former Soviet immigrants transform adopted country |newspaper=The Guardian |date=17 August 2011 |url=https://www.theguardian.com/world/2011/aug/17/israel-soviet-immigrants-transform-country |access-date=25 February 2018 |archive-date=12 March 2020 |archive-url=https://web.archive.org/web/20200312190713/https://www.theguardian.com/world/2011/aug/17/israel-soviet-immigrants-transform-country |url-status=live }}</ref> The second development benefiting the Israeli economy is the [[Israeli–Palestinian peace process|peace process]] that begun at the [[Madrid Conference of 1991|Madrid conference]] of October 1991, which led to the signing of accords and later to a peace treaty between Israel and [[Jordan]] (1994).

[[File:השטרות החדשים של ישראל.jpg|thumb|Israeli New Shekel, new banknotes since 2018]]
During the early 2000s, the Israeli economy went into a downturn due to the crashing of the [[dot-com bubble|global dot-com bubble]] which bankrupted many startups established during the height of the bubble. The [[Second Intifada]], which cost Israel billions of dollars in security costs, and a decline in investment and tourism,<ref>{{cite web |url=http://repub.eur.nl/res/pub/10558/EI%202007-39.pdf |title=Economic consequences of intifada: a sequel |last1=De Boer |first1=Paul |last2=Missaglia |first2=Marco |date=September 2007 |work=[[Econometric Institute]] Report |publisher=Erasmus University Rotterdam |access-date=15 October 2012 |archive-date=10 May 2013 |archive-url=https://web.archive.org/web/20130510052453/http://repub.eur.nl/res/pub/10558/EI%202007-39.pdf |url-status=live }}</ref> sent unemployment in Israel to the double digits; growth in one quarter of 2000 was 10%. In 2002, the Israeli economy declined about 4% in one quarter.  Afterward, Israel managed to create a remarkable recovery by opening up new markets to Israeli exporters farther afield, such as in the rapidly [[Economy of East Asia|growing countries of East Asia]]. This was possible thanks to a rebound in the Israeli tech sector, spurred on by the gradual bottoming out of the dotcom crash and a growing increase in demand for computer software, which in turn was due to burgeoning rates of global internet usage at this time. The explosion in demand for security and defense products following 9/11 also allowed Israel to sell even more of its technologies abroad – a situation only made possible due to Israel's prior investments in the technology sector in an effort to curb high levels of domestic unemployment.

In the 2000s, there was an influx of [[Foreign direct investment|foreign investment]] in Israel from companies that formerly shunned the Israeli market. In 2006, foreign investment in Israel totalled $13&nbsp;billion, according to the [[Manufacturers Association of Israel]].<ref name= w>"Israeli Growth", ''Dateline World Jewry'', September 2007</ref> The ''[[Financial Times]]'' said that "bombs drop, yet Israel's economy grows".<ref>[http://www.ft.com/cms/s/bd1cb7ba-fcb1-11db-9971-000b5df10621,dwp_uuid=f98b03ba-4d11-11da-ba44-0000779e2340.html / Middle East / Arab-Israel conflict – Israeli economy shrugs off political turmoil]. ''Financial Times'' (7 May 2007). Retrieved on 8 September 2011.</ref> Moreover, while Israel's total gross external debt is US$95&nbsp;billion, or approximately 41.6% of GDP, since 2001 it has become a net lender nation in terms of net external debt (the total value of assets vs. liabilities in debt instruments owed abroad), which {{as of|2012|6|lc=y}} stood at a significant surplus of US$60&nbsp;billion.<ref>{{cite web |url=http://www.bankisrael.gov.il/en/NewsAndPublications/PressReleases/Pages/19092012.aspx |title=Israel's International Investment Position (IIP), June 2012 |date=19 September 2012 |publisher=Bank of Israel |access-date=15 October 2012 |archive-date=16 January 2013 |archive-url=https://web.archive.org/web/20130116083309/http://www.bankisrael.gov.il/en/NewsAndPublications/PressReleases/Pages/19092012.aspx |url-status=dead }}</ref> The country also maintains a [[Current account (balance of payments)|current account]] surplus in an amount equivalent to about 3% of its gross domestic product in 2010. In 2023, Israel's account surplus was 25.3 billion U.S. dollars.<ref>{{Cite web |title=Israel's current account surplus rises to 25.3 bln USD in 2023: report-Xinhua |url=https://english.news.cn/20240313/96b4ce27110a47488d24c51331600b85/c.html#:~:text=JERUSALEM,%20March%2012%20(Xinhua),annual%20balance%20of%20payments%20report. |access-date=2024-06-29 |website=english.news.cn}}</ref>

[[File:BankIsrael01 ST 06.jpg|thumb|[[Bank of Israel]]]]

The Israeli economy weathered and withstood the [[late-2000s recession]], registering positive GDP growth in 2009 and ending the decade with an unemployment rate lower than that of many of its Western counterparts.<ref name= hanews>{{cite news |title=GDP, jobs figures end 2009 on a high |first=Moti |last=Bassok |url=http://www.haaretz.com/print-edition/business/gdp-jobs-figures-end-2009-on-a-high-1.260636 |newspaper=Haaretz |date=1 January 2010 |access-date=17 October 2012 |archive-date=17 April 2016 |archive-url=https://web.archive.org/web/20160417140704/http://www.haaretz.com/print-edition/business/gdp-jobs-figures-end-2009-on-a-high-1.260636 |url-status=live }}</ref> There are several reasons behind this economic resilience, for example, the fact that the country is a net lender rather than a borrower nation and the government and the Bank of Israel's generally conservative macro-economic policies. Two policies, in particular, can be cited, one is the refusal of the government to succumb to pressure by the banks to appropriate large sums of public money to aid them early in the crisis, thus limiting their risky behavior.<ref>{{cite journal |last=Benchimol |first=J. |year=2016 |title=Money and monetary policy in Israel during the last decade |journal=[[Journal of Policy Modeling]] |volume=38 |issue=1 |pages=103–124 |doi=10.1016/j.jpolmod.2015.12.007 |s2cid=54847945 |url=https://mpra.ub.uni-muenchen.de/69587/1/MPRA_paper_69587.pdf |access-date=11 December 2019 |archive-date=29 July 2020 |archive-url=https://web.archive.org/web/20200729214008/https://mpra.ub.uni-muenchen.de/69587/1/MPRA_paper_69587.pdf |url-status=live }}</ref> The second is the implementation of the recommendations of the Bach'ar commission in the early to mid-2000s which recommended decoupling the banks' [[Commercial bank|depository-]] and [[Investment banking]] activities, contrary to [[Decline of the Glass–Steagall Act|the then-opposite trend]], particularly in the United States, of easing such restrictions which had the effect of encouraging more risk-taking in the financial systems of those countries.<ref>{{cite news |script-title=he:כך ביזבזנו עוד משבר ענק |first=Guy |last=Rolnik |url=http://www.themarker.com/wallstreet/1.549518 |newspaper=TheMarker |date=31 December 2009 |access-date=17 October 2012 |language=he |trans-title=How another Giant Crisis was Wasted |archive-date=6 July 2014 |archive-url=https://web.archive.org/web/20140706000902/http://www.themarker.com/wallstreet/1.549518 |url-status=live }}</ref> American investors today make up the most significant portion of investors in Israel.<ref name=":4" />

===OECD membership===
In May 2007, Israel was invited to open accession discussions with the [[OECD]].<ref>{{cite news |url=http://www.ynetnews.com/articles/0,7340,L-3400955,00.html |title=Israel invited to join the OECD |newspaper=Ynetnews |date=16 May 2007 |access-date=21 May 2007 |archive-date=3 March 2016 |archive-url=https://web.archive.org/web/20160303194937/http://www.ynetnews.com/articles/0,7340,L-3400955,00.html |url-status=live }}</ref> In May 2010, the OECD voted unanimously to invite Israel to join, despite Palestinian objections.<ref name= BBC/> It became a full member on 7 September 2010.<ref name= OECD/><ref>{{cite web |url=http://www.oecd.org/about/membersandpartners/ |title=Members and partners |publisher=Organisation for Economic Co-operation and Development |access-date=15 October 2012 |archive-date=17 May 2019 |archive-url=https://web.archive.org/web/20190517031319/http://www.oecd.org/about/membersandpartners/ |url-status=live }}</ref> The OECD praised Israel's scientific and technological progress and described it as having "produced outstanding outcomes on a world scale."<ref name= BBC>[http://news.bbc.co.uk/2/hi/8672304.stm OECD members vote unanimously to invite Israel to join] {{Webarchive|url=https://web.archive.org/web/20200605205837/http://news.bbc.co.uk/2/hi/8672304.stm |date=5 June 2020 }}. BBC News (10 May 2010). Retrieved on 8 September 2011.</ref>

==Challenges==
Despite economic prosperity, the Israeli economy faces many challenges, some short-term and some long-term. In the short term, its inability to duplicate its success in the [[Telecommunications in Israel|telecommunication industry]] in other growing industries hampers its economic outlook. Its inability to foster large multinational companies in the last decade also calls into question its ability to employ many people in advanced industries.<ref>{{cite web |url=http://startup-nation.com/the-book/ |title=What's Next for the Startup Nation? |access-date=15 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120819031009/http://startup-nation.com/the-book/ |archive-date=19 August 2012  }}</ref> On the long term, Israel is facing challenges of high dependency on the growing number of [[Haredi|Ultra-Orthodox Jews]], who have a low level of official labor force participation among men. This situation could lead to a materially lower [[employment-to-population ratio]] and a higher [[dependency ratio]] in the future.<ref>OECD Economic Outlook: Israel</ref> The governor of the [[Bank of Israel]], [[Stanley Fischer]], stated that the growing poverty amongst the Ultra-Orthodox is hurting the Israeli economy.<ref>{{cite news|url=https://www.haaretz.com/1.5151647|title=BoI Chief: Haredi Unemployment Is Hurting Israel's Economy|date=22 July 2010|access-date=19 January 2019|newspaper=Haaretz|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605205837/https://www.haaretz.com/1.5151647|url-status=live}}</ref> According to the data published by Ian Fursman, 60% of the poor households in Israel are of the [[Haredi Jews]] and the [[Israeli Arabs]]. Together, these two groups represent 25–28% of the Israeli population. Organizations such as The Kemach Foundation, Gvahim, Jerusalem Village, and The Jerusalem Business Networking Forum are addressing these challenges with job placement services and networking events.<ref>{{cite news|url=http://www.jpost.com/In-Jerusalem/City-Front/Helping-business-people-blossom|title=Helping business people blossom|work=The Jerusalem Post|access-date=30 May 2016|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605205837/https://www.jpost.com/in-jerusalem/city-front/helping-business-people-blossom|url-status=live}}</ref><ref>{{cite news|url=http://www.jpost.com/In-Jerusalem/City-Front/Made-in-Israel-336194|title=Made in Israel|work=The Jerusalem Post|access-date=30 May 2016|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605210117/https://www.jpost.com/In-Jerusalem/City-Front/Made-in-Israel-336194|url-status=live}}</ref><ref>{{cite web|url=http://www.timesofisrael.com/native-and-new-israelis-try-to-bridge-the-immigrant-gap/|title=Native and new Israelis try to bridge the immigrant gap|website=The Times of Israel|access-date=30 May 2016|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605205841/https://www.timesofisrael.com/native-and-new-israelis-try-to-bridge-the-immigrant-gap/|url-status=live}}</ref><ref>{{cite news|url=http://www.jpost.com/Israel-News/Employment-agency-for-olim-celebrates-first-career-placement-program-in-Jerusalem-404750|title=Nonprofit Gvahim celebrates first career-placement program for olim in Jerusalem|work=The Jerusalem Post|access-date=30 May 2016|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605205835/https://www.jpost.com/israel-news/employment-agency-for-olim-celebrates-first-career-placement-program-in-jerusalem-404750|url-status=live}}</ref><ref>{{cite book|url=https://books.google.com/books?id=HrGZBQAAQBAJ&q=60%25+of+the+poor+households+in+Israel+are+of+the+Haredi+Jews+and+the+Israeli+Arabs&pg=PA227 |title=Israel Country Study Guide Volume 1 Strategic Information and Developments|date= 3 March 2012|publisher=Lulu.com |access-date=28 January 2018|isbn=9781438774657 }}</ref>

===2023 Israel–Gaza war===
After the [[Gaza war]], the Israeli stock markets and currency nosedived. <ref>{{cite web |last1=Kozul-Wright |first1=Alexander |title=Gaza war extends toll on Israel’s economy |url=https://www.aljazeera.com/economy/2024/8/23/gaza-war-extends-toll-on-israels-economy |website=.aljazeera |date=23 August 2024}}</ref> It is estimated that Israel will lose around $400 billion in the next decade and experience a significant economic shock. Ninety percent of this will result from indirect consequences such as reduced investment, labor market disruptions, and hindered productivity growth.<ref>{{cite web |last1=Egel |first1=Daniel |title=From the Ashes of Hamas-Israel War, Can Economics Drive Peace? |url=https://www.rand.org/pubs/commentary/2023/11/from-the-ashes-of-hamas-israel-war-can-economics-drive.html |website=[[RAND Corporation]] |date=28 November 2023}}</ref> On August 2024, [[Fitch Ratings]] downgraded Israel's credit rating. The [[Bank of Israel]] has counted war-related costs from 2023 to 2025 at up to $55.6 billion. Another consequence of the war was that consumer spending dropped by 27%, imports fell by 42%, and exports declined by 18%.<ref>{{Cite news |last=Ivanova |first=Polina |last2=Zilber |first2=Neri |date=2024-02-19 |title=Israel’s economy shrank at 20% rate after outbreak of war |url=https://www.ft.com/content/763bb384-a974-4222-996f-8aecfbc32074 |url-access=subscription |url-status=live |archive-url=https://archive.today/20240427153202/https://www.ft.com/content/763bb384-a974-4222-996f-8aecfbc32074 |archive-date=27 April 2024 |access-date=2024-12-25 |work=Financial Times}}</ref>
=== Wealth Migrate ===
The 2024 [[Henley & Partners]] Report, indicates that around 1,700 millionaires have departed the country since 2023, seeking investment migration opportunities to mitigate risks and explore alternative residency options. The report announced a remarkable 232% increase in investment migration applications from Israeli citizens in 2023.<ref>{{cite web |last1=MARCONI |first1=DAN |title=Israel’s Millionaires Look to Investment Migration to Mitigate Heightened Risks |url=https://www.henleyglobal.com/publications/henley-private-wealth-migration-report-2024/israels-millionaires-look-investment-migration-mitigate-heightened-risks |website=Henley & Partners |date=2024}}</ref> Factors driving this trend include a 5% depreciation in the shekel's value against the US dollar, a 10% decline in real estate prices in Tel Aviv,<ref>{{cite web |title=Tel Aviv drops in global ranking of top 50 wealthiest cities |url=https://www.timesofisrael.com/tel-aviv-drops-in-global-ranking-of-top-50-wealthiest-cities-as-millionaires-decamp/ |website=timesofisrael |date=9 April 2025}}</ref> Israel's growing international isolation, and the financial pressure resulting from the war in 2023.<ref>{{cite web |title=Israel sees 1,700 millionaires leave due to Gaza war |url=https://www.middleeastmonitor.com/20250409-israel-sees-1700-millionaires-leave-due-to-gaza-war/ |website=middleeastmonitor |date=9 April  2025}}</ref>

===Red Sea crisis===
The [[Red Sea crisis]] caused by the Houthi attacks has severely affected the Israeli economy, disrupting shipping routes, increasing costs, and causing job losses. The port of Eilat, Israel's southern gateway, has suffered almost shut down and bankruptcy, leading to requests for government support.<ref name="18July">{{cite web |first=Yusri |last=Mohammed |date=18 July 2024 |title=Suez Canal revenue drops as some shippers shun Red Sea |url=https://www.reuters.com/business/autos-transportation/suez-canal-revenue-drops-some-shippers-shun-red-sea-2024-07-18/ |access-date=18 July 2024 |website=www.reuters.com |publisher=Reuters}}</ref> Half of the port's workers were at risk of losing their jobs.<ref>{{Cite web |last=Agencies |date=20 March 2024 |title=Eilat Port to lay off half its staff due to Houthi attacks stymieing shipping trade |url=https://www.timesofisrael.com/eilat-port-to-lay-off-half-its-staff-due-to-houthi-attacks-stymieing-shipping-trade/ |website=The Times of Israel |access-date=20 March 2024 |archive-date=20 March 2024 |archive-url=https://web.archive.org/web/20240320151427/https://www.timesofisrael.com/eilat-port-to-lay-off-half-its-staff-due-to-houthi-attacks-stymieing-shipping-trade/ |url-status=live }}</ref> Many ships are avoiding the Red Sea and rerouting around Africa, which makes the journey three weeks longer and more expensive.<ref>{{cite web|url=https://www.axios.com/2023/12/14/us-warns-yemens-houthis-stop-red-sea-attacks|title=U.S. warns Houthis to stop attacks in Red Sea|last=Ravid|first=Barak|date=15 December 2023|website=[[Axios (website)|Axios]]|access-date=15 December 2023|archive-date=15 December 2023|archive-url=https://web.archive.org/web/20231215104039/https://www.axios.com/2023/12/14/us-warns-yemens-houthis-stop-red-sea-attacks|url-status=live}}</ref> Insurance costs for ships in the Red Sea surged, with some Israeli ships seeing a  250% increase or being denied coverage altogether.<ref>{{cite web|url=https://www.timesofisrael.com/how-are-houthi-seizures-in-the-vital-red-sea-shipping-lane-impacting-global-trade/|title=How are Houthi seizures in the vital Red Sea shipping lane impacting global trade?|last1=Bonell|first1=Courtney|last2=McHugh|first2=David|date=14 December 2023|website=[[The Times of Israel]]|access-date=15 December 2023|archive-date=14 December 2023|archive-url=https://web.archive.org/web/20231214172124/https://www.timesofisrael.com/how-are-houthi-seizures-in-the-vital-red-sea-shipping-lane-impacting-global-trade/|url-status=live}}</ref>
=== Boycotts of Israel ===
On 19 July 2024, the [[International Court of Justice]] released an important advisory opinion stating that countries must not recognize, assist, or support the illegal circumstances arising from Israel's occupation of Palestinian territories. The court declared that all nations must avoid any economic or trade relations with Israel concerning the [[Occupied Palestinian territories]] (OPT) or any areas that could reinforce its unlawful presence there. Additionally, it emphasized the need to take steps to prevent trade or investment activities that contribute to sustaining the illegal situation established by Israel in the OPT.<ref>{{cite web |title=19 JULY 2024 ADVISORY OPINION |url=https://www.un.org/unispal/wp-content/uploads/2024/07/186-20240719-adv-01-00-en.pdf |website=United Nations |date=19 July 2024}}</ref><ref>{{cite web |title=Israel/OPT: Ban EU Trade and Business with Israel’s Illegal Settlements in the Occupied Palestinian Territory |url=https://www.amnesty.eu/news/israel-opt-ban-eu-trade-and-business-with-israels-illegal-settlements-in-the-occupied-palestinian-territory/ |website=Amnesty International |date=4 February 2025}}</ref> 
On May 26, 2023, the [[European Trade Union Confederation]] (ETUC), which represents over 45 million workers and their trade unions across Europe, announced a [[Boycotts of Israel|boycott]] of products made in illegal Israeli settlements in the occupied Palestinian territories. The ETUC emphasized the need for regulatory measures to ban the import and export of goods produced in these illicit settlements by entities within the European Union, as stipulated by EU treaties and international law.<ref>{{cite web |title=European trade union to boycott products made in Israel settlements |url=https://www.middleeastmonitor.com/20230526-european-trade-union-to-boycott-products-made-in-israel-settlements/ |website=middleeastmonitor. |date=26 May 2023}}</ref><ref>{{cite web |last1=Kampmark |first1=Binoy |title=Political labelling: The EU’s legal stance on goods from Israel’s illegal settlements |url=https://www.middleeastmonitor.com/20241026-political-labelling-the-eus-legal-stance-on-goods-from-israels-illegal-settlements/ |website=middleeastmonitor |date=26 October 2024}}</ref>

===2023 Israeli judicial reform===
Following the [[2023 Israeli judicial reform]], banks in the country experienced a significant surge in fund withdrawals, occurring at a rate ten times higher than normal. Executives warned that these political changes could adversely affect the economy, resulting in a decline in the shekel's value and a loss of investor confidence.<ref name="Obel">{{Cite web |last=Obel |first=Ash |title=Report: Bank officials believe $4 billion moved out of Israel in recent weeks |url=https://www.timesofisrael.com/report-bank-officials-believe-4-billion-moved-out-of-israel-in-recent-weeks/ |access-date=2023-02-21 |website=The Times of Israel}}</ref> A report from The Times of Israel on March 5, 2023, noted that as the shekel depreciated against the dollar and euro,<ref name=":14">{{Cite news |last1=Lubell |first1=Maayan |last2=Scheer |first2=Steven |date=2023-02-21 |title=Israel shekel nears 3-year low as judicial overhaul spooks investors |work=Reuters |url=https://www.reuters.com/world/middle-east/israel-finance-minister-smotrich-vows-cenbank-independence-2023-02-21/ |access-date=2023-02-21}}</ref><ref>{{Cite news |date=2023-02-21 |title=Shekel weakest for three years against US dollar |work=Globes |url=https://en.globes.co.il/en/article-shekel-weakest-for-three-years-against-us-dollar-1001438962 |access-date=2023-02-21}}</ref> the Tel Aviv Stock Exchange fell compared to stock markets in the EU and the US.<ref>{{cite web |last1=Scheer and Lubell |first1=Steven and Maayan |title=Tel Aviv shares drop amid Netanyahu judiciary plans, rising violence |url=https://www.reuters.com/world/middle-east/tel-aviv-shares-drop-amid-netanyahu-judiciary-plans-rising-violence-2023-01-29/ |website=reuters |date=29 January 2023}}</ref> Numerous companies, particularly in the technology sector, have withdrawn their investments from Israel, leading to an outflow of over $4 billion in just a few weeks.<ref name="Obel">{{Cite web |last=Obel |first=Ash |title=Report: Bank officials believe $4 billion moved out of Israel in recent weeks |url=https://www.timesofisrael.com/report-bank-officials-believe-4-billion-moved-out-of-israel-in-recent-weeks/ |access-date=2023-02-21 |website=The Times of Israel}}</ref>

== Data ==
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation under 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=436,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects | access-date=21 October 2022 | archive-date=21 October 2022 | archive-url=https://web.archive.org/web/20221021202133/https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=436,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | url-status=live }}</ref>
{{static row numbers}}{{sticky header}}
{| class="wikitable sortable sticky-header" style="text-align:center;"
!Year
!GDP<br /><small>(in bn. US$PPP)</small>
!GDP per capita<br /><small>(in US$ PPP)</small>
!GDP<br /><small>(in bn. US$nominal)</small>
!GDP per capita<br /><small>(in US$ nominal)</small>
!GDP growth<br /><small>(real)</small>
!Inflation rate<br /><small>(in Percent)</small>
!Unemployment<br /><small>(in Percent)</small>
!Government debt<br /><small>(in % of GDP)</small>
|-
|1980
|28.4
|7,240.1
|24.9
|6,356.5
|{{Increase}}3.6%
|{{IncreaseNegative}}316.6%
|4.8%
|n/a
|-
|1981
|{{Increase}}32.5
|{{Increase}}8,240.4
|{{Increase}}26.4
|{{Increase}}6,687.2
|{{Increase}}4.7%
|{{IncreaseNegative}}116.8%
|{{IncreaseNegative}}5.1%
|n/a
|-
|1982
|{{Increase}}35.0
|{{Increase}}8,717.7
|{{Increase}}28.3
|{{Increase}}7,040.6
|{{Increase}}1.4%
|{{IncreaseNegative}}120.4%
|{{DecreasePositive}}5.0%
|n/a
|-
|1983
|{{Increase}}37.3
|{{Increase}}9,100.1
|{{Increase}}31.6
|{{Increase}}7,688.7
|{{Increase}}2.6%
|{{IncreaseNegative}}145.6%
|{{DecreasePositive}}4.6%
|n/a
|-
|1984
|{{Increase}}39.5
|{{Increase}}9,514.1
|{{Decrease}}29.9
|{{Decrease}}7,186.1
|{{Increase}}2.2%
|{{IncreaseNegative}}373.8%
|{{IncreaseNegative}}5.9%
|n/a
|-
|1985
|{{Increase}}42.6
|{{Increase}}10,072.8
|{{Decrease}}27.8
|{{Decrease}}6,562.4
|{{Increase}}4.5%
|{{IncreaseNegative}}304.6%
|{{IncreaseNegative}}6.7%
|n/a
|-
|1986
|{{Increase}}45.0
|{{Increase}}10,477.6
|{{Increase}}34.2
|{{Increase}}7,955.1
|{{Increase}}3.6%
|{{IncreaseNegative}}48.2%
|{{IncreaseNegative}}7.1%
|n/a
|-
|1987
|{{Increase}}49.6
|{{Increase}}11,355.8
|{{Increase}}40.8
|{{Increase}}9,349.1
|{{Increase}}7.5%
|{{IncreaseNegative}}19.9%
|{{DecreasePositive}}6.1%
|n/a
|-
|1988
|{{Increase}}53.2
|{{Increase}}11,975.7
|{{Increase}}50.6
|{{Increase}}11,391.5
|{{Increase}}3.6%
|{{IncreaseNegative}}16.2%
|{{IncreaseNegative}}6.4%
|n/a
|-
|1989
|{{Increase}}56.0
|{{Increase}}12,408.2
|{{Increase}}51.5
|{{Increase}}11,394.3
|{{Increase}}1.4%
|{{IncreaseNegative}}20.2%
|{{IncreaseNegative}}8.9%
|n/a
|-
|1990
|{{Increase}}62.0
|{{Increase}}13,308.1
|{{Increase}}60.7
|{{Increase}}13,035.7
|{{Increase}}6.6%
|{{IncreaseNegative}}17.2%
|{{IncreaseNegative}}9.6%
|n/a
|-
|1991
|{{Increase}}67.0
|{{Increase}}13,553.3
|{{Increase}}68.9
|{{Increase}}13,924.0
|{{Increase}}4.6%
|{{IncreaseNegative}}19.0%
|{{IncreaseNegative}}10.6%
|n/a
|-
|1992
|{{Increase}}73.5
|{{Increase}}14,340.4
|{{Increase}}77.0
|{{Increase}}15,021.2
|{{Increase}}7.2%
|{{IncreaseNegative}}11.9%
|{{IncreaseNegative}}11.2%
|n/a
|-
|1993
|{{Increase}}78.1
|{{Increase}}14,841.5
|{{Increase}}77.4
|{{Decrease}}14,708.3
|{{Increase}}3.8%
|{{IncreaseNegative}}10.9%
|{{DecreasePositive}}10.0%
|n/a
|-
|1994
|{{Increase}}85.3
|{{Increase}}15,813.5
|{{Increase}}88.3
|{{Increase}}16,367.6
|{{Increase}}7.0%
|{{IncreaseNegative}}12.3%
|{{DecreasePositive}}7.8%
|n/a
|-
|1995
|{{Increase}}95.5
|{{Increase}}17,233.8
|{{Increase}}104.9
|{{Increase}}18,927.9
|{{Increase}}9.7%
|{{IncreaseNegative}}10.0%
|{{DecreasePositive}}6.9%
|n/a
|-
|1996
|{{Increase}}103.0
|{{Increase}}18,131.5
|{{Increase}}114.5
|{{Increase}}20,153.2
|{{Increase}}5.9%
|{{IncreaseNegative}}11.3%
|{{IncreaseNegative}}8.3%
|n/a
|-
|1997
|{{Increase}}108.8
|{{Increase}}18,677.3
|{{Increase}}118.9
|{{Increase}}20,410.4
|{{Increase}}3.8%
|{{IncreaseNegative}}9.0%
|{{IncreaseNegative}}9.5%
|n/a
|-
|1998
|{{Increase}}114.5
|{{Increase}}19,191.2
|{{Increase}}120.1
|{{Decrease}}20,119.2
|{{Increase}}4.1%
|{{IncreaseNegative}}5.4%
|{{IncreaseNegative}}10.7%
|n/a
|-
|1999
|{{Increase}}120.0
|{{Increase}}19,616.7
|{{Increase}}120.9
|{{Decrease}}19,766.9
|{{Increase}}3.3%
|{{IncreaseNegative}}5.2%
|{{IncreaseNegative}}11.1%
|n/a
|-
|2000
|{{Increase}}133.4
|{{Increase}}21,216.5
|{{Increase}}136.0
|{{Increase}}21,641.3
|{{Increase}}8.7%
|{{Increase}}1.1%
|{{DecreasePositive}}10.9%
|77.4%
|-
|2001
|{{Increase}}136.8
|{{Increase}}21,258.3
|{{Decrease}}134.6
|{{Decrease}}20,918.3
|{{Increase}}0.3%
|{{Increase}}1.1%
|{{IncreaseNegative}}11.6%
|{{IncreaseNegative}}81.3%
|-
|2002
|{{Increase}}138.8
|{{Decrease}}21,137.0
|{{Decrease}}125.1
|{{Decrease}}19,044.9
|{{Decrease}}-0.1%
|{{IncreaseNegative}}5.7%
|{{IncreaseNegative}}12.9%
|{{IncreaseNegative}}87.3%
|-
|2003
|{{Increase}}143.5
|{{Increase}}21,460.9
|{{Increase}}131.3
|{{Increase}}19,634.9
|{{Increase}}1.4%
|{{Increase}}0.7%
|{{IncreaseNegative}}13.4%
|{{IncreaseNegative}}89.7%
|-
|2004
|{{Increase}}154.4
|{{Increase}}22,687.4
|{{Increase}}140.0
|{{Increase}}20,565.8
|{{Increase}}4.8%
|{{Increase}}-0.4%
|{{DecreasePositive}}12.9%
|{{DecreasePositive}}88.3%
|-
|2005
|{{Increase}}165.8
|{{Increase}}23,941.4
|{{Increase}}147.1
|{{Increase}}21,233.8
|{{Increase}}4.1%
|{{Increase}}1.3%
|{{DecreasePositive}}11.2%
|{{DecreasePositive}}85.4%
|-
|2006
|{{Increase}}180.5
|{{Increase}}25,596.8
|{{Increase}}158.7
|{{Increase}}22,501.1
|{{Increase}}5.6%
|{{Increase}}2.1%
|{{DecreasePositive}}10.5%
|{{DecreasePositive}}77.7%
|-
|2007
|{{Increase}}196.6
|{{Increase}}27,390.9
|{{Increase}}184.1
|{{Increase}}25,647.7
|{{Increase}}6.0%
|{{Increase}}0.5%
|{{DecreasePositive}}9.2%
|{{DecreasePositive}}70.9%
|-
|2008
|{{Increase}}206.8
|{{Increase}}28,309.7
|{{Increase}}220.5
|{{Increase}}30,182.5
|{{Increase}}3.3%
|{{Increase}}4.6%
|{{DecreasePositive}}7.7%
|{{DecreasePositive}}70.4%
|-
|2009
|{{Increase}}210.0
|{{Decrease}}28,068.5
|{{Decrease}}212.0
|{{Decrease}}28,330.2
|{{Increase}}0.9%
|{{Increase}}3.3%
|{{IncreaseNegative}}9.4%
|{{IncreaseNegative}}73.0%
|-
|2010
|{{Increase}}224.6
|{{Increase}}29,469.5
|{{Increase}}238.4
|{{Increase}}31,278.0
|{{Increase}}5.7%
|{{Increase}}2.7%
|{{DecreasePositive}}8.3%
|{{DecreasePositive}}69.3%
|-
|2011
|{{Increase}}242.0
|{{Increase}}31,172.7
|{{Increase}}266.8
|{{Increase}}34,366.9
|{{Increase}}5.6%
|{{Increase}}3.4%
|{{DecreasePositive}}7.1%
|{{DecreasePositive}}67.4%
|-
|2012
|{{Increase}}255.7
|{{Increase}}32,336.1
|{{Decrease}}262.3
|{{Decrease}}33,170.0
|{{Increase}}2.6%
|{{Increase}}1.7%
|{{DecreasePositive}}6.9%
|{{DecreasePositive}}67.1%
|-
|2013
|{{Increase}}280.0
|{{Increase}}34,755.0
|{{Increase}}297.7
|{{Increase}}36,957.4
|{{Increase}}4.4%
|{{Increase}}1.5%
|{{DecreasePositive}}6.2%
|{{DecreasePositive}}66.0%
|-
|2014
|{{Increase}}285.4
|{{Increase}}34,755.7
|{{Increase}}314.3
|{{Increase}}38,276.6
|{{Increase}}3.9%
|{{Increase}}0.5%
|{{DecreasePositive}}5.9%
|{{DecreasePositive}}64.9%
|-
|2015
|{{Increase}}300.5
|{{Increase}}35,876.9
|{{Decrease}}303.4
|{{Decrease}}36,221.1
|{{Increase}}2.5%
|{{Increase}}-0.6%
|{{DecreasePositive}}5.2%
|{{DecreasePositive}}63.1%
|-
|2016
|{{Increase}}326.6
|{{Increase}}38,229.6
|{{Increase}}322.1
|{{Increase}}37,701.9
|{{Increase}}4.5%
|{{Increase}}-0.5%
|{{DecreasePositive}}4.8%
|{{DecreasePositive}}61.4%
|-
|2017
|{{Increase}}344.3
|{{Increase}}39,533.6
|{{Increase}}358.2
|{{Increase}}41,131.7
|{{Increase}}4.3%
|{{Increase}}0.2%
|{{DecreasePositive}}4.2%
|{{DecreasePositive}}59.7%
|-
|2018
|{{Increase}}366.9
|{{Increase}}41,320.4
|{{Increase}}376.7
|{{Increase}}42,422.9
|{{Increase}}4.1%
|{{Increase}}0.8%
|{{DecreasePositive}}4.0%
|{{IncreaseNegative}}59.9%
|-
|2019
|{{Increase}}389.0
|{{Increase}}42,977.1
|{{Increase}}402.5
|{{Increase}}44,466.8
|{{Increase}}4.2%
|{{Increase}}0.8%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}58.8%
|-
|2020
|{{Decrease}}386.4
|{{Decrease}}41,930.7
|{{Increase}}413.3
|{{Increase}}44,850.4
|{{Decrease}}-1.9%
|{{Increase}}-0.6%
|{{IncreaseNegative}}4.3%
|{{IncreaseNegative}}70.7%
|-
|2021
|{{Increase}}437.1
|{{Increase}}46,659.3
|{{Increase}}488.5
|{{Increase}}52,151.9
|{{Increase}}8.6%
|{{Increase}}1.5%
|{{IncreaseNegative}}5.0%
|{{DecreasePositive}}68.0%
|-
|2022
|{{Increase}}496.8
|{{Increase}}52,173.1
|{{Increase}}527.2
|{{Increase}}55,358.8
|{{Increase}}6.1%
|{{Increase}}4.5%
|{{DecreasePositive}}3.9%
|{{DecreasePositive}}61.5%
|-
|2023
|{{Increase}}530.0
|{{Increase}}54,750.6
|{{Increase}}564.2
|{{Increase}}58,273.4
|{{Increase}}3.0%
|{{Increase}}3.6%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}57.6%
|-
|2024
|{{Increase}}557.4
|{{Increase}}56,633.2
|{{Increase}}591.3
|{{Increase}}60,082.8
|{{Increase}}3.0%
|{{Increase}}2.5%
|{{DecreasePositive}}3.7%
|{{DecreasePositive}}55.7%
|-
|2025
|{{Increase}}585.1
|{{Increase}}58,474.2
|{{Increase}}618.8
|{{Increase}}61,846.7
|{{Increase}}3.1%
|{{Increase}}2.2%
|{{Steady}}3.7%
|{{DecreasePositive}}55.1%
|-
|2026
|{{Increase}}615.6
|{{Increase}}60,526.4
|{{Increase}}647.4
|{{Increase}}63,650.9
|{{Increase}}3.3%
|{{Increase}}2.0%
|{{Steady}}3.7%
|{{DecreasePositive}}54.7%
|-
|2027
|{{Increase}}649.5
|{{Increase}}62,813.2
|{{Increase}}678.6
|{{Increase}}65,625.6
|{{Increase}}3.5%
|{{Increase}}1.9%
|{{Steady}}3.7%
|{{DecreasePositive}}54.4%
|}

==Sectors==
===Agriculture===
{{Main|Agriculture in Israel}}
[[File:PikiWiki Israel 3584 Gan-Shmuel sb12- 7.jpg|thumb|The [[Kibbutz]]im, collective communities in Israel traditionally based on agriculture, played an important role in Israel's economy until the late 1970s.|alt=Men loading hay bales onto truck at a Kibbutz.]]
In 2017, 2.4% of the country's GDP is derived from [[Agriculture in Israel|agriculture]]. Of a total labor force of 2.7&nbsp;million, 2.6% are employed in agricultural production while 6.3% in services for agriculture.<ref>[http://www.moag.gov.il/agri/files/agriculture/index.html Agriculture in Israel – Facts and Figures 2008 – Israeli ministry of Agriculture Presentation] {{webarchive|url=https://web.archive.org/web/20090809060406/http://www.moag.gov.il/agri/files/agriculture/index.html |date=9 August 2009 }}. Moag.gov.il. Retrieved on 8 September 2011.</ref> While Israel imports substantial quantities of grain (approximately 80% of local consumption), it is largely self-sufficient in other agricultural products and foodstuffs. For centuries, farmers of the region have grown varieties of citrus fruits, such as grapefruit, oranges and lemons. Citrus fruits are still Israel's major agricultural export. In addition, Israel is one of the world's leading greenhouse-food-exporting countries. Israel also produces and exports flowers and cotton. The country exports more than $1.3 billion worth of agricultural products every year, including farm produce as well as $1.2 billion worth of agricultural inputs and technology.<ref>{{cite encyclopedia | url=https://www.jewishvirtuallibrary.org/jsource/Economy/eco3.html | title=Israeli Agro-Technology | encyclopedia=Jewish Virtual Library | access-date=27 March 2013 | archive-date=29 November 2016 | archive-url=https://web.archive.org/web/20161129214850/http://www.jewishvirtuallibrary.org/jsource/Economy/eco3.html | url-status=live }}</ref> Israeli technological innovations in agriculture and water technology have given the Israeli [[Agricultural technology|AgTech]] sector a competitve edge and allows Israeli agtech companies to operate in numerous countries around the world.<ref>{{Cite news |last=Perry |first=Veronica |date= |title=Water Technology and Agriculture: Sustaining Israel's Development |url=https://blogs.timesofisrael.com/water-technology-and-agriculture-sustaining-israels-development/ |work=The Times of Israel}}</ref>

===Financial services===
{{Main|Banking in Israel|Venture capital in Israel}}

[[File:Madpis.jpg|thumb|[[Jerusalem Venture Partners]] (JVP) compound in [[Jerusalem]], one of Israel's largest venture capital firms]]

Israel has over 100 active venture capital funds operating throughout the country with US$10 billion under management. In 2004, international foreign funds from various nations around the world committed over 50 percent of the total dollars invested exemplifying the country's strong and sound reputation as an internationally sought after foreign investment by many countries.<ref>{{cite web |url=http://www.israeltrade.org.au/israel/economic-overview/ |title=Economic Overviews |date=3 November 2009 |publisher=Israel Trade Commission |access-date=18 March 2013 |archive-date=5 June 2020 |archive-url=https://web.archive.org/web/20200605205834/http://www.israeltrade.org.au/israel/economic-overview/ |url-status=live }}</ref> Israel's venture capital sector has rapidly developed from the early 1990s, and has about 70 active venture capital funds (VC), of which 14 international VCs have Israeli offices. Israel's thriving venture capital and [[Business incubator|business-incubator]] industry played an important role in financing the country's flourishing high-tech sector.<ref>[http://www.investinisrael.gov.il/NR/exeres/A19A138D-87A7-416B-8D62-1C968E035E13.htm Venture Capital in Israel] {{webarchive|url=https://web.archive.org/web/20060218080510/http://www.investinisrael.gov.il/NR/exeres/A19A138D-87A7-416B-8D62-1C968E035E13.htm |date=18 February 2006 }}. Investinisrael.gov.il (21 June 2010). Retrieved on 8 September 2011.</ref> In 2008, venture capital investment in Israel, rose 19 percent to $1.9&nbsp;billion.<ref>[https://venturebeat.com/2009/02/18/international-venture-funding-rose-15-percent-in-2008/ International venture funding rose 5 percent in 2008] {{Webarchive|url=https://web.archive.org/web/20120714021930/http://venturebeat.com/2009/02/18/international-venture-funding-rose-15-percent-in-2008/ |date=14 July 2012 }}. VentureBeat (18 February 2009). Retrieved on 8 September 2011.</ref>
[[File:Capital Raised by the Venture Capital Industry in Israel in the 1990’s.webp|thumb|The [[Yozma|Yozma Fund]] kick-started the venture capital industry in [[Israel]] during the 1990s, raising ~$8 billion total.<ref>https://www.researchgate.net/publication/24078427_Venture_capital_start-up_co-evolution_and_the_emergence_development_of_Israel's_new_high_tech_cluster</ref>]]
"Between 1991 and 2000, Israel's annual venture-capital outlays, nearly all private, rose nearly 60-fold, from $58&nbsp;million to $3.3&nbsp;billion; companies launched by Israeli venture funds rose from 100 to 800; and Israel's information-technology revenues rose from $1.6&nbsp;billion to $12.5&nbsp;billion. By 1999, Israel ranked second only to the United States in invested private-equity capital as a share of GDP. Israel led the world in the share of its growth attributable to high-tech ventures: 70 percent."<ref name= Gilder>{{cite journal |title=Silicon Israel – How market capitalism saved the Jewish state |url=https://www.city-journal.org/html/silicon-israel-13208.html |last=Gilder |first=George |journal=City Journal |date=Summer 2009 |volume=19 |issue=3 |access-date=24 August 2018 |archive-date=5 June 2020 |archive-url=https://web.archive.org/web/20200605210113/https://www.city-journal.org/html/silicon-israel-13208.html |url-status=live }}</ref>

Israel's thriving venture capital industry has played an important role in funding the country's booming high-technology sector, with hundreds of prosperous Israeli private equity and venture capital firms.<ref name= ChD>{{cite web |url=http://www.chinadaily.com.cn/bizchina/2017-09/09/content_31763649.htm |title=China-Israel economic, tech cooperation to enter new stage: Israeli minister |date=9 September 2017 |website=China Daily |access-date=11 September 2017 |archive-date=5 June 2020 |archive-url=https://web.archive.org/web/20200605210252/http://www.chinadaily.com.cn/bizchina/2017-09/09/content_31763649.htm |url-status=live }}</ref> The [[2008 financial crisis]] negatively affected the availability of venture capital locally. In 2009, there were 63 [[mergers and acquisitions]] in the Israeli market worth a total of $2.54 billion; 7% below 2008 levels ($2.74 billion), when 82 Israeli companies were merged or acquired, and 33% lower than 2007 proceeds ($3.79 billion) when 87 Israeli companies were merged or acquired.<ref name= VC>[http://www.investinisrael.gov.il/NR/exeres/A19A138D-87A7-416B-8D62-1C968E035E13.htm Venture Capital in Israel] {{webarchive|url=https://web.archive.org/web/20060218080510/http://www.investinisrael.gov.il/NR/exeres/A19A138D-87A7-416B-8D62-1C968E035E13.htm |date=18 February 2006 }}</ref> Numerous Israeli high tech companies have been acquired by various global multinational corporations for their ability to produce profit-driven technologies in addition to their arsenal of reliable corporate management and quality administrative personnel.<ref name= STEM/> In addition to venture capital funds, many of the world's leading investment banks, pension funds, and insurance companies have a strong presence in Israel committing their funds to financially back Israeli high-tech firms and benefit from its prosperous high tech sector. These institutional investors include [[Goldman Sachs]], [[Bear Stearns]], [[Deutsche Bank]], [[JP Morgan]], [[Credit Swiss First Boston|Credit Suisse First Boston]], [[Merrill Lynch]], [[CalPERS]], [[Ontario Teachers Pension Plan]], and [[American International Group|AIG]].<ref>{{cite web|url=http://www.nyjtimes.com/Heritage/News/2003/Aug/InvestinginIsrael.htm |title=Investing in Israel |work=The New York Times |access-date=18 March 2013 |author=Yoram Ettinger |url-status=dead |archive-url=https://web.archive.org/web/20130509230619/http://www.nyjtimes.com/Heritage/News/2003/Aug/InvestinginIsrael.htm |archive-date=9 May 2013 }}</ref>

Israel also has a small but fast growing [[hedge fund]] industry. Within five years between 2007 and 2012, the number of active hedge funds doubled to 60. Israel-based hedge funds have registered an increase of 162% from 2006 to 2012, when they managed a total of $2 billion ([[Israeli new shekel|₪]]8 billion) and employed about 300 people.<ref>{{cite news|url=https://www.haaretz.com/israel-news/business/israel-a-bit-late-the-to-hedge-fund-party-1.5271291|title=Israel Belatedly Joins the Global Hedge Fund Boom|date=26 July 2012|access-date=19 January 2019|newspaper=Haaretz|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605210148/https://www.haaretz.com/israel-news/business/israel-a-bit-late-the-to-hedge-fund-party-1.5271291|url-status=live}}</ref><ref>{{cite web|url=http://www.finalternatives.com/node/21139|title=Israel Stakes Claim As Future Hedge Fund Center – FINalternatives|website=finalternatives.com|access-date=19 January 2019|archive-url=https://web.archive.org/web/20121125072211/http://www.finalternatives.com/node/21139|archive-date=25 November 2012|url-status=dead}}</ref><ref>[http://cooconnect.com/archives/3621 Israeli hedge fund industry enjoys massive growth<!-- Bot generated title -->]{{dead link|date=September 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>{{cite news| url=http://www.hedgefundsreview.com/hedge-funds-review/news/1553260/ash-saluja-cms-cameron-mckenna| title=Hedge Funds Review - Audio: Israel's hedge fund industry shows promise| access-date=16 January 2013| archive-url=https://web.archive.org/web/20121027154554/http://www.hedgefundsreview.com/hedge-funds-review/news/1553260/ash-saluja-cms-cameron-mckenna| archive-date=27 October 2012| url-status=dead}}</ref><ref>{{cite web|url=http://tzurmanagement.com/tzur-management-israel-hedge-fund-survey|title=Tzur Management – Israel Hedge Fund Survey – Tzur Management|website=tzurmanagement.com|access-date=19 January 2019|archive-url=https://web.archive.org/web/20180906124522/http://tzurmanagement.com/tzur-management-israel-hedge-fund-survey|archive-date=6 September 2018|url-status=dead}}</ref> The ever-growing hedge fund industry in Israel is also attracting a myriad of investors from around the world, particularly from the United States.<ref>{{cite web|url=https://en.globes.co.il/en/article-1000790165|title=How Israeli hedge funds can exploit their US potential|website=Globes|date=15 October 2012|access-date=19 January 2019|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730224623/https://en.globes.co.il/en/article-1000790165|url-status=live}}</ref>

In 2022, [[Tel Aviv]] was ranked 53rd on the [[Global Financial Centres Index]].<ref>[https://www.rfl.rw/docs/GFCI32Report2022.09.22v0.3WithEmbargo.pdf The Global Financial Centres Index 32]</ref>

In 2023, despite the occurrence of war and significant events like a legal reform and interest rate rise that shook the capital market and created uncertainty, about 40% of the companies traded on the Tel Aviv Stock Exchange continued to distribute dividends to their shareholders. This was particularly evident in the energy, oil and gas industries, and in the banking and financial services sector. The year marked a record in the total dividend distributed to public shareholders, with about 62% of the distributed amount (16.8 billion shekels), compared to about 55% of the dividends (15.8 billion shekels) in 2022, with the remainder being paid to stakeholders. The average dividend yield of the exchange-listed companies in 2023 was approximately 2.9%, compared to about 2.8% in the previous year. This was the highest return since 2017 and higher than that of 2022, the record year, as the average market value in 2023 was about 9% lower than in 2022, while the total dividend was only about 5% lower than the previous year.<ref>{{cite news |date=9 May 2024 |title=למרות המלחמה והמהפכה המשפטית: כ-40% מחברות הבורסה חילקו דיבידנדים |url=https://www.ynet.co.il/economy/article/hy119mrikt |website=Ynet |access-date=9 May 2024 |archive-date=9 May 2024 |archive-url=https://web.archive.org/web/20240509141933/https://www.ynet.co.il/economy/article/hy119mrikt |url-status=live |last1=זומר |first1=נווית }}</ref>

===High technology===
{{Main|Science and technology in Israel|Silicon Wadi}}
[[File:Weizmann accelerator.jpg|upright|thumb|right|[[Weizmann Institute of Science]], [[Rehovot]]|alt=Orb-tower of Weizmann Institute of Science]]

Science and technology in Israel is one of the country's most highly developed and industrialized sectors. The modern Israeli ecosystem of high technology is highly optimized making up a significant bulk of the Israeli economy. The percentage of Israelis engaged in scientific and technological inquiry, and the amount spent on research and development (R&D) concerning gross domestic product (GDP), is among the highest in the world,<ref>[http://www.investinisrael.gov.il/NR/rdonlyres/6B8717A4-7D79-4562-A57B-1FEA6857A2DB/0/IsraelWhereBreakthroughsHappen020709.pdf Invest In Israel. Where Breakthroughs Happen] {{webarchive|url=https://web.archive.org/web/20120617013701/http://www.investinisrael.gov.il/NR/rdonlyres/6B8717A4-7D79-4562-A57B-1FEA6857A2DB/0/IsraelWhereBreakthroughsHappen020709.pdf |date=17 June 2012 }}</ref> with 140 scientists and technicians per 10,000 employees. In comparison, the same is 85 per 10,000 in the United States and 83 per 10,000 in Japan.<ref>{{cite web |url=http://sun.inc.hse.ru/sites/default/files/Shteinbuk.pdf |title=R&D and Innovation as a Growth Engine |last=Shteinbuk |first=Eduard |date=22 July 2011 |publisher=National Research University – Higher School of Economics |access-date=11 May 2013 |archive-date=8 August 2019 |archive-url=https://web.archive.org/web/20190808102137/http://sun.inc.hse.ru/sites/default/files/Shteinbuk.pdf |url-status=dead }}</ref> Israel ranks fourth in the world in scientific activity, as measured by the number of scientific publications per million citizens. Israel's percentage of the total number of scientific articles published worldwide is almost 10 times higher than its percentage of the world's population.<ref>{{cite news |title=Israel ranks fourth in the world in scientific activity, study finds |first=Ofri |last=Ilani |url=http://www.haaretz.com/print-edition/news/israel-ranks-fourth-in-the-world-in-scientific-activity-study-finds-1.4034 |newspaper=Haaretz |date=17 November 2009 |access-date=17 October 2012 |archive-date=24 September 2015 |archive-url=https://web.archive.org/web/20150924223602/http://www.haaretz.com/print-edition/news/israel-ranks-fourth-in-the-world-in-scientific-activity-study-finds-1.4034 |url-status=live }}</ref> The country is home to over 1,400 life science companies, including about 300 pharmaceutical companies, 600 medical device companies, 450 digital health companies, and 468 biotechnology companies.<ref>{{Cite web |url=https://www.weizmann-usa.org/news-media/in-the-news/reflections-on-israel-s-thriving-biotech-industry/ |title=Reflections on Israel's Thriving Biotech Industry |date=25 December 2019 |access-date=25 September 2021 |archive-date=25 September 2021 |archive-url=https://web.archive.org/web/20210925140351/https://www.weizmann-usa.org/news-media/in-the-news/reflections-on-israel-s-thriving-biotech-industry/ |url-status=live }}</ref><ref>{{Cite web|url=https://www.jpost.com/opinion/israel-the-start-up-nation-is-now-the-biotech-nation-opinion-675850|title=Israel: The 'Start-Up Nation' is now the 'Biotech Nation' – opinion|date=4 August 2021|website=The Jerusalem Post &#124; JPost.com}}</ref><ref>{{Cite web |url=https://blogs.timesofisrael.com/how-israel-became-a-world-leader-in-biotechnology/ |title=Reflections on Israel's Thriving Biotech Industry |access-date=25 September 2021 |archive-date=25 September 2021 |archive-url=https://web.archive.org/web/20210925140748/https://blogs.timesofisrael.com/how-israel-became-a-world-leader-in-biotechnology/ |url-status=live }}</ref> Israeli scientists, engineers, and technicians have contributed to the modern advancement of the natural sciences, [[Agricultural research in Israel|agricultural sciences]], computer sciences, electronics, genetics, medicine, optics, [[Solar power in Israel|solar energy]] and various fields of engineering. The country has one of the world's technologically most literate populations.<ref>{{cite news |url=https://www.bbc.co.uk/news/world-middle-east-14629611 |title=Israel profile – Media |publisher=BBC News  |access-date=14 October 2012 |date=24 July 2012 |archive-date=19 November 2021 |archive-url=https://web.archive.org/web/20211119173519/https://www.bbc.co.uk/news/world-middle-east-14629611 |url-status=live }}</ref> Israel has the second largest number of startup companies globally, behind only the United States, and remains one of the largest centers in the world for technology start-up enterprises.<ref name= Karr/><ref name= Chua219/> As of 2013, around 200 start-ups were being created annually in Israel.<ref name= moital/><ref>{{cite web | url=http://www.iaesi.org.il/_Uploads/dbsAttachedFiles/HongKongbusinessdelegation.pdf | title=Israel Association of Electronics & Software Industries Overview 2011 | publisher=Israel Association of Electronics and Software Industries | access-date=18 March 2013 | url-status=dead | archive-url=https://web.archive.org/web/20130513071626/http://www.iaesi.org.il/_Uploads/dbsAttachedFiles/HongKongbusinessdelegation.pdf | archive-date=13 May 2013 }}</ref> In 2019, there were nearly 7,000 active start-ups operating throughout the country.<ref>{{Cite web |url=https://www.calcalistech.com/ctech/articles/0,7340,L-3766973,00.html |title=Google Wants in on 6,000 Israeli Startups Within the Next 3 Years, Says Exec |date=24 July 2019 |access-date=18 March 2022 |archive-date=18 March 2022 |archive-url=https://web.archive.org/web/20220318213532/https://www.calcalistech.com/ctech/articles/0,7340,L-3766973,00.html |url-status=live }}</ref> In 2021, there were 79 Israeli-established tech [[unicorn (finance)|unicorns]], with 32 of them headquartered in Israel.<ref>{{Cite web |url=https://www.timesofisrael.com/33-unicorns-and-25b-in-funding-israeli-tech-sector-sets-new-records-in-2021/ |title=33 unicorns and $25b in funding: Israeli tech sector sets new records in 2021 |website=[[The Times of Israel]] |access-date=18 March 2022 |archive-date=13 December 2021 |archive-url=https://web.archive.org/web/20211213125439/https://www.timesofisrael.com/33-unicorns-and-25b-in-funding-israeli-tech-sector-sets-new-records-in-2021/ |url-status=live }}</ref> More than one-third of cybersecurity unicorns in the world were Israeli in 2021.<ref>{{Cite web |url=https://www.timesofisrael.com/israel-cybersecurity-firms-raise-record-3-4b-41-of-global-sector-investment/ |title=Israel cybersecurity firms raise record $3.4b, 41% of global sector investment |website=[[The Times of Israel]] |access-date=21 March 2022 |archive-date=21 March 2022 |archive-url=https://web.archive.org/web/20220321125645/https://www.timesofisrael.com/israel-cybersecurity-firms-raise-record-3-4b-41-of-global-sector-investment/ |url-status=live }}</ref> Israel is also home to nearly 400 research and development centers owned by various multinational companies, including prominent high-technology giants such as [[Google]], [[Microsoft]], and [[Intel]].<ref>{{Cite web |url=https://finder.startupnationcentral.org/multinationals/search |title="Start-Up Nation Finder – Israeli innovation network". |access-date=1 September 2021 |archive-date=27 September 2021 |archive-url=https://web.archive.org/web/20210927010717/https://finder.startupnationcentral.org/multinationals/search |url-status=live }}</ref><ref>{{Cite news |url=https://en.globes.co.il/en/article-five-google-features-developed-in-israel-1001285985 |title=Five Google features developed in Israel |newspaper=Globes |date=16 May 2019 |access-date=1 September 2021 |archive-date=1 September 2021 |archive-url=https://web.archive.org/web/20210901234000/https://en.globes.co.il/en/article-five-google-features-developed-in-israel-1001285985 |url-status=live }}</ref><ref>{{Cite web |url=https://www.microsoftrnd.co.il/ |title=Microsoft R&D Israel |access-date=1 September 2021 |archive-date=3 September 2021 |archive-url=https://web.archive.org/web/20210903201755/https://www.microsoftrnd.co.il/ |url-status=live }}</ref><ref>{{Cite web |url=https://www.intel.com/content/www/us/en/corporate-responsibility/intel-in-israel.html |title=Intel in Israel |access-date=1 September 2021 |archive-date=29 July 2021 |archive-url=https://web.archive.org/web/20210729062542/https://www.intel.com/content/www/us/en/corporate-responsibility/intel-in-israel.html |url-status=live }}</ref>

Israel is also a major [[semiconductor]] design hub. The country is home to numerous chip design centers owned by major multinational corporations, and is considered as having one of the most advanced chip design industries in the world. In 2021, a total of 37 multinational corporations were operating in Israel in the semiconductor field.<ref>{{Cite web |url=https://www.timesofisrael.com/as-global-demand-for-microchips-surges-tech-giants-go-all-in-on-israel/ |title=As global demand for microchips surges, tech giants go all-in on Israel |website=[[The Times of Israel]] |access-date=20 March 2022 |archive-date=20 March 2022 |archive-url=https://web.archive.org/web/20220320203733/https://www.timesofisrael.com/as-global-demand-for-microchips-surges-tech-giants-go-all-in-on-israel/ |url-status=live }}</ref><ref>{{Cite news |url=https://en.globes.co.il/en/article-israel-seen-as-major-player-as-global-chip-war-intensifies-1001366716 |title=Israel seen as major player as global chip war intensifies |newspaper=Globes |date=4 August 2021 |access-date=20 March 2022 |archive-date=5 July 2022 |archive-url=https://web.archive.org/web/20220705041914/https://en.globes.co.il/en/article-israel-seen-as-major-player-as-global-chip-war-intensifies-1001366716 |url-status=live }}</ref>

In 1998, [[Tel Aviv]] was named by ''[[Newsweek]]'' as one of the ten technologically most influential cities in the world.<ref>{{cite web |url=https://www.jewishvirtuallibrary.org/jsource/Economy/telaviv.html |title=Tel Aviv One of The World's Top High-Tech Centers |work=Jewish Virtual Library |publisher=American-Israeli Cooperative Enterprise |access-date=14 October 2012 |archive-date=14 July 2002 |archive-url=https://web.archive.org/web/20020714002005/http://www.jewishvirtuallibrary.org/jsource/Economy/telaviv.html |url-status=dead }}</ref> In 2012, the city was also named one of the best places for high-tech startup companies, placed second behind its [[Silicon Valley|California counterpart]].<ref>{{cite news | url=http://go.bloomberg.com/tech-deals/2012-11-21-after-silicon-valley-tel-aviv-ranks-best-for-tech-startups-study/ | publisher=Bloomberg | title=After Silicon Valley, Tel Aviv Ranks Best for Tech Startups: Study | access-date=16 January 2013 | archive-date=27 November 2012 | archive-url=https://web.archive.org/web/20121127230947/http://go.bloomberg.com/tech-deals/2012-11-21-after-silicon-valley-tel-aviv-ranks-best-for-tech-startups-study/ | url-status=live }}</ref><ref>{{cite web|url=http://www.israel21c.org/tel-aviv-named-top-startup-center/|title=Tel Aviv named top startup center|first=Viva Sarah|last=Press|website=Israel21c|date=9 December 2012|access-date=19 January 2019|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605210219/https://www.israel21c.org/tel-aviv-named-top-startup-center/|url-status=live}}</ref>
In 2013, ''[[The Boston Globe]]'' ranked Tel Aviv as the second-best city for business start-ups, after [[Silicon Valley]].<ref>{{cite news |url=http://www.ynetnews.com/articles/0,7340,L-4415932,00.html |title=Tel Aviv No. 2 city for tech startups |newspaper=Ynetnews |date=11 August 2013 |publisher=Ynetnews.com |access-date=28 January 2018 |last1=Eichner |first1=Itamar |archive-date=5 June 2020 |archive-url=https://web.archive.org/web/20200605205836/https://www.ynetnews.com/articles/0,7340,L-4415932,00.html |url-status=live }}</ref> In 2020, StartupBlink ranked Israel as having the third best [[startup ecosystem]] in the world, behind only the United States and [[United Kingdom]].<ref>{{Cite web |url=https://www.calcalistech.com/ctech/articles/0,7340,L-3866873,00.html |title=Israel is ranked third in the world for tech, but can it hold its spot? |date=29 October 2020 |access-date=18 March 2022 |archive-date=24 January 2022 |archive-url=https://web.archive.org/web/20220124025322/https://www.calcalistech.com/ctech/articles/0,7340,L-3866873,00.html |url-status=live }}</ref>

As a result of the country's highly prolific and dynamic start-up culture, Israel is often referred to as the "[[Start-up Nation|Start-Up Nation]]."<ref>{{cite news|url=http://timesofindia.indiatimes.com/trend-tracking/how-israel-became-startup-nation/articleshow/57465402.cms|title=How Israel turned itself into a startup nation – Times of India|work=The Times of India|access-date=13 August 2017|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804031629/https://timesofindia.indiatimes.com/trend-tracking/how-israel-became-startup-nation/articleshow/57465402.cms|url-status=live}}</ref><ref>{{cite news|url=http://www.economist.com/node/21543151|title=What next for the start-up nation?|date=21 January 2012|newspaper=The Economist|access-date=13 August 2017|issn=0013-0613|archive-date=25 July 2017|archive-url=https://web.archive.org/web/20170725154615/http://www.economist.com/node/21543151|url-status=live}}</ref><ref>{{cite web | last=Rogers | first=Stewart | title=Israel: 'Startup Nation' — the good, the great, and the one fatal flaw | website=VentureBeat | date=6 October 2017 | url=https://venturebeat.com/2017/10/06/israel-startup-nation-the-good-the-great-and-the-one-fatal-flaw/ | access-date=2 April 2018 | archive-date=13 May 2020 | archive-url=https://web.archive.org/web/20200513163520/https://venturebeat.com/2017/10/06/israel-startup-nation-the-good-the-great-and-the-one-fatal-flaw/ | url-status=live }}</ref> and the "Silicon Valley of the Middle East".<ref name= ChD/> Programs that send people to Israel to explore the "Start-Up Nation" economy include TAVtech Ventures and TAMID Group.<ref>{{cite web|url=https://www.schusterman.org/tamid-israel-investment-group|title=The TAMID Israel Investment Group|website=schusterman.org|access-date=13 August 2017|archive-date=14 August 2017|archive-url=https://web.archive.org/web/20170814031415/https://www.schusterman.org/tamid-israel-investment-group|url-status=dead}}</ref><ref>{{cite news|url=https://www.israel21c.org/ivy-leaguers-on-winter-break-learn-coding-in-israel/|title=Ivy Leaguers on winter break learn coding in Israel|work=Israel21c|access-date=13 August 2017|archive-date=18 August 2018|archive-url=https://web.archive.org/web/20180818052510/https://www.israel21c.org/ivy-leaguers-on-winter-break-learn-coding-in-israel/|url-status=live}}</ref><ref>{{cite news|url=http://forward.com/scribe/360493/tavtech-launching-the-next-generation-of-the-startup-nation/|title=TavTech: Launching The Next Generation of the Startup Nation|work=The Forward|access-date=13 August 2017|archive-date=5 August 2020|archive-url=https://web.archive.org/web/20200805175833/https://forward.com/scribe/360493/tavtech-launching-the-next-generation-of-the-startup-nation/|url-status=live}}</ref> This success has been attributed by some to widespread service in the [[Israel Defense Forces]] and its development of talent which then fuels the high-tech industry upon discharge.

In recent years, the industry has faced a shortage of technology specialists; 15% of positions in the high technology sector of Israel were unfilled as of 2019.<ref name=":0">{{cite web|url=https://www.jpost.com/Jpost-Tech/Israeli-tech-sector-faces-shortage-of-15000-workers-574436|title=Israeli tech sector faces shortage of 15,000 workers – Hi tech news – Jerusalem Post|website=The Jerusalem Post|date=16 December 2018|access-date=5 October 2019|archive-date=2 October 2019|archive-url=https://web.archive.org/web/20191002165653/https://www.jpost.com/Jpost-Tech/Israeli-tech-sector-faces-shortage-of-15000-workers-574436|url-status=live}}</ref><ref>{{cite web|url=https://8allocate.com/article/how-israeli-companies-respond-to-local-tech-talent-shortage/|title=How Israeli Companies Respond to Local Tech Talent Shortage|date=14 March 2019|website=8allocate|access-date=5 October 2019|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605210519/https://8allocate.com/article/how-israeli-companies-respond-to-local-tech-talent-shortage/|url-status=live}}</ref> However, the largest number of unfilled job positions (31%) are in [[software engineering]] specialities: [[DevOps]], [[Back-end (computing)|back-end]], [[data science]], [[machine learning]] and [[artificial intelligence]].<ref name=":1">{{cite web|url=https://www.timesofisrael.com/15000-tech-worker-shortfall-pushing-firms-to-seek-talent-offshore/|title=15,000 tech worker shortfall pushing firms to seek talent offshore|last=Solomon|first=Shoshanna|website=The Times of Israel|access-date=5 October 2019|archive-date=8 November 2019|archive-url=https://web.archive.org/web/20191108074936/https://www.timesofisrael.com/15000-tech-worker-shortfall-pushing-firms-to-seek-talent-offshore/|url-status=live}}</ref> Therefore, salaries of specialists in the Israeli market also increased significantly. To solve this problem, IT companies look for filling the gaps abroad. Consequently, they employ about 25% of their entire workforce overseas. Most companies choose to hire employees from [[Ukraine]] (45%) and the United States (with 16%) are the second most popular [[offshoring]] destination country.<ref>{{cite web|url=https://8allocate.com/article/how-it-outsourcing-to-ukraine-helps-israeli-companies-stay-ahead-of-the-curve/|title=How IT Outsourcing To Ukraine Helps Israeli Companies Stay Ahead of the Curve|date=1 February 2019|website=8allocate|access-date=5 October 2019|archive-date=5 June 2020|archive-url=https://web.archive.org/web/20200605205837/https://8allocate.com/article/how-it-outsourcing-to-ukraine-helps-israeli-companies-stay-ahead-of-the-curve/|url-status=live}}</ref><ref>{{cite journal|date=December 2018|title=Start Up Nation Central Human Capital Report 2018|url=https://www.startupnationcentral.org/wp-content/uploads/2018/12/Start-Up-Nation-Central-Human-Capital-Report-2018.pdf|journal=Start-Up Nation Central|pages=7, 16|access-date=5 October 2019|archive-date=31 July 2020|archive-url=https://web.archive.org/web/20200731005529/https://www.startupnationcentral.org/wp-content/uploads/2018/12/Start-Up-Nation-Central-Human-Capital-Report-2018.pdf|url-status=live}}</ref> In 2017, the [[Council for Higher Education in Israel]] launched a five-year program to increase the number of graduates from computer science and engineering programs by 40%.<ref name=":0" /><ref name=":1" />

===Energy===
{{main|Energy in Israel}}
[[File:Levant Basin.png|right|thumb|Known oil and gas fields in the Levant Basin (US EIA)]]
[[File:Fossil fuel consumption in Israel.svg|right|thumb|Consumption of fossil fuel energy sources in Israel since 1980.  Coal consumption rose steadily since 1980 when it was negligible.  Natural gas consumption was nearly zero in 2003 and has risen steadily since.]]

Historically, Israel relied on external imports for meeting most of its energy needs, spending an amount equivalent to over 5% of its GDP per year in 2009 on imports of energy products.<ref name= gas1>{{cite news |title=Gas discovery tempers Israeli recession blues |first=Amotz |last=Asa-El |url=http://articles.marketwatch.com/2009-01-27/news/30797823_1_gas-discovery-delek-group-natural-gas/2 |newspaper=MarketWatch |date=27 January 2009 |access-date=17 October 2012 |url-status=dead |archive-url=https://archive.today/20130128053526/http://articles.marketwatch.com/2009-01-27/news/30797823_1_gas-discovery-delek-group-natural-gas/2 |archive-date=28 January 2013  }}</ref> The transportation sector relies mainly on [[gasoline]] and [[diesel fuel]], while the majority of electricity production is generated using imported coal. As of 2013, Israel was importing about 100 mln barrels of oil per year.<ref>[https://www.eia.gov/beta/international/country.cfm?iso=ISR Israel's Key Energy Statistics] {{Webarchive|url=https://web.archive.org/web/20170731035659/https://www.eia.gov/beta/international/country.cfm?iso=ISR |date=31 July 2017 }} – [[Energy Information Administration]] site</ref> The country possesses negligible reserves of [[crude oil]] but does have domestic [[natural gas]] resources which were discovered in more significant quantities starting in 2009, after many decades of previously unsuccessful [[hydrocarbon exploration|exploration]].<ref name= Gas1/><ref name= eiarpt>{{cite web|title=Oil and natural gas in the Eastern Mediterranean region (summer 2013 report)|publisher=[[Energy Information Administration|U.S. Energy Information Administration]]|date=15 August 2013|url=http://www.eia.gov/countries/regions-topics.cfm?fips=EM|access-date=24 August 2013|url-status=dead|archive-url=https://web.archive.org/web/20130901220817/http://www.eia.gov/countries/regions-topics.cfm?fips=EM|archive-date=1 September 2013}}</ref><ref name= gas6>{{cite news |first=Charles |last=Levinson |author2=Chazan, Guy |title=Big Gas Find Sparks a Frenzy in Israel |url=https://www.wsj.com/articles/SB10001424052970204204004576049842786766586 |work=The Wall Street Journal |date=30 December 2010 |access-date=1 January 2011 |archive-date=23 May 2019 |archive-url=https://web.archive.org/web/20190523213806/https://www.wsj.com/articles/SB10001424052970204204004576049842786766586 |url-status=live }}</ref><ref name= gas10>{{cite news |last=Bar-Eli |first=Avi |title=400 Drills in 60 Years: Is there Oil in Israel? |url=http://www.themarker.com/markets/1.631559 |access-date=27 April 2011 |newspaper=[[TheMarker]] |date=26 April 2011 |language=he |archive-date=6 November 2018 |archive-url=https://web.archive.org/web/20181106212146/https://www.themarker.com/markets/1.631559 |url-status=live }}</ref><ref>{{cite news|last=Udasin|first=Sharon|title=New Natural Gas Wealth Means Historic Change for Israel|url=http://news.nationalgeographic.com/news/energy/2012/07/120703-israel-new-natural-gas|archive-url=https://web.archive.org/web/20120707043556/http://news.nationalgeographic.com/news/energy/2012/07/120703-israel-new-natural-gas/|url-status=dead|archive-date=7 July 2012|access-date=25 August 2012|newspaper=[[National Geographic Society|National Geographic News]]|date=3 July 2012|location=part of "The Great Energy Challenge" series}}</ref>

====Natural gas====
{{Main|Natural gas in Israel}}
Until the early 2000s, natural gas use in Israel was minimal. In the late 1990s, the government of Israel decided to encourage the usage of natural gas because of environmental, cost, and resource diversification reasons. At the time however, there were no domestic sources of natural gas and the expectation was that gas would be supplied from overseas in the form of [[Liquefied natural gas|LNG]] and by a future pipeline from Egypt (which eventually became the [[Arish–Ashkelon pipeline]]). Plans were made for the [[Israel Electric Corporation]] to construct several natural gas-driven power plants, for erecting a national gas distribution grid, and for an LNG import terminal.

{| class="wikitable"
|+ Natural Gas Usage in Israel<ref>{{cite web|title=Delivery System|url=http://www.ingl.co.il/he/%D7%9E%D7%A2%D7%A8%D7%9B%D7%AA-%D7%94%D7%94%D7%95%D7%9C%D7%9B%D7%94.html|publisher=Israel Natural Gas Lines, Ltd.|access-date=24 March 2012|url-status=dead|archive-url=https://archive.today/20120904083001/http://www.ingl.co.il/he/%D7%9E%D7%A2%D7%A8%D7%9B%D7%AA-%D7%94%D7%94%D7%95%D7%9C%D7%9B%D7%94.html|archive-date=4 September 2012}}</ref>
! 2004
! 2005
! 2006
! 2007
! 2008
! 2009
! 2010
! 2014
! 2016
! 2018<sup>*</sup>
! 2020<sup>*</sup>
! 2022<sup>*</sup>
! 2024<sup>*</sup>
! 2026<sup>*</sup>
! 2028<sup>*</sup>
! 2030<sup>*</sup>
|- style="text-align:right;"
|1.2
|1.6
|2.3
|2.7
|3.7
|4.2
|5.2
|7.6
|9.5
|10.1
|11.1
|11.7
|13
|14.3
|15.3
|16.8
|-
|colspan="16"|<small>Figures are in Billion Cubic Meters (BCM) per year.</small> <sup>*</sup><small>Projected</small>
|}

====Recent discoveries ====
In 2000, a 33-billion-cubic-metre (BCM), or 1,200-billion-cubic-foot, natural-gas field was located offshore [[Ashkelon]], with commercial production starting in 2004. {{As of|2014}} however, this field is nearly depleted—earlier than expected due to increased pumping to partially compensate for the loss of imported Egyptian gas in the wake of unrest associated with the [[Egyptian Revolution of 2011|fall of the Mubarak regime in 2011]]. In 2009, a significant gas find named [[Tamar gas field|Tamar]], with [[proven reserves]] of 223 BCM or {{convert|223|e9m3|disp=out}} (307 BCM total proven + probable) was located in deep water approximately {{convert|90|km|mi|-1|abbr=on}} west of [[Haifa]], as well as a smaller 15 BCM ({{convert|15|e9m3|disp=out}}) field situated nearer the coastline.<ref name= gas4>{{cite press release |title=Delek Group Subsidiaries Announce Preliminary Results of 3D Seismic Survey & Updates on Tamar & Mari-B Fields |publisher=[[Delek Group]] |date=3 June 2010 |url=http://ir.delek-group.com/phoenix.zhtml?c=160695&p=irol-newsArticle&ID=1433914 |archive-url=https://archive.today/20130121124140/http://ir.delek-group.com/phoenix.zhtml?c=160695&p=irol-newsArticle&ID=1433914 |url-status=dead |archive-date=21 January 2013 |access-date=3 June 2010 }}</ref><ref name= gas2>{{cite news |title=Tamar offshore field promises even more gas than expected |first=Avi |last=Bar-Eli |url=http://www.haaretz.com/print-edition/business/tamar-offshore-field-promises-even-more-gas-than-expected-1.281861 |newspaper=Haaretz |date=12 August 2009 |access-date=17 October 2012 |archive-date=31 July 2017 |archive-url=https://web.archive.org/web/20170731042041/http://www.haaretz.com/print-edition/business/tamar-offshore-field-promises-even-more-gas-than-expected-1.281861 |url-status=live }}</ref><ref name= gas3>{{cite news |title=Noble increases Tamar gas reserve estimate 15 pct |first=Steven |last=Scheer |url=https://www.reuters.com/article/2010/06/03/israel-naturalgas-idUSLDE65209Q20100603 |work=Reuters|date=3 June 2010 |access-date=17 October 2012 |archive-date=24 September 2015 |archive-url=https://web.archive.org/web/20150924145408/http://www.reuters.com/article/2010/06/03/israel-naturalgas-idUSLDE65209Q20100603 |url-status=dead }}</ref><ref name= TamarUpd>{{cite web|title=Tamar Reserves Update|url=http://maya.tase.co.il/bursa/report.asp?report_cd=875826-00&CompCd=232&Type=Pdf|publisher=Isramco Negev 2, LP.|access-date=2 February 2014|page=2|date=1 February 2014|archive-date=29 March 2016|archive-url=https://web.archive.org/web/20160329184559/http://maya.tase.co.il/bursa/report.asp?report_cd=875826-00&CompCd=232&Type=Pdf|url-status=live}}</ref> Furthermore, results of 3D seismic surveys and test drilling conducted since 2010 have confirmed that an estimated 621 BCM ({{convert|621|e9m3|disp=out}}) natural-gas deposit named [[Leviathan gas field|Leviathan]] exists in a large underwater geological formation nearby the large gas field already discovered in 2009.<ref>{{cite news|last1=Solomon|first1=Shoshanna|last2=Khan|first2=Sarmad|title=Israel Shares Rise as Gas Field Reserves Are Increased|url=https://www.bloomberg.com/news/2014-07-13/dubai-stocks-climb-on-property-profit-prospects-abu-dhabi-gains.html|access-date=13 July 2014|publisher=[[Bloomberg News]]|date=13 July 2014|archive-date=26 October 2014|archive-url=https://web.archive.org/web/20141026053728/http://www.bloomberg.com/news/2014-07-13/dubai-stocks-climb-on-property-profit-prospects-abu-dhabi-gains.html|url-status=live}}</ref><ref name= gas5>{{cite press release |title=Significant Discovery Announced at Leviathan-1 |publisher=[[Delek Group]] |date=29 December 2010 |url=http://ir.delek-group.com/phoenix.zhtml?c=160695&p=irol-newsArticle&ID=1511164 |archive-url=https://archive.today/20130121090330/http://ir.delek-group.com/phoenix.zhtml?c=160695&p=irol-newsArticle&ID=1511164 |url-status=dead |archive-date=21 January 2013 |access-date=30 December 2010 }}</ref><ref>{{cite news|last=Barkat|first=Amiram|title=Leviathan gas reserves raised again|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000840788|access-date=1 May 2013|newspaper=[[Globes (newspaper)|Globes]]|date=1 May 2013|author2=Koren, Hillel|archive-date=16 September 2013|archive-url=https://web.archive.org/web/20130916032306/http://www.globes.co.il/serveen/globes/docview.asp?did=1000840788|url-status=live}}</ref>

The Tamar field began commercial production on 30 March 2013 after four years of development.<ref>{{cite news|last=Solomon|first=Shoshanna|title=Israel Begins Gas Production at Tamar Field in Boost to Economy|url=https://www.bloomberg.com/news/2013-03-30/israel-begins-gas-production-at-tamar-field-in-boost-to-economy.html|access-date=30 March 2013|date=30 March 2013|author2=Ackerman, Gwen|publisher=[[Bloomberg News]]|archive-date=31 March 2013|archive-url=https://web.archive.org/web/20130331221346/http://www.bloomberg.com/news/2013-03-30/israel-begins-gas-production-at-tamar-field-in-boost-to-economy.html|url-status=live}}</ref> The supply of gas from Tamar was expected to aid the Israeli economy, which had suffered losses of more than [[Israeli new shekel|₪]]20 billion between 2011 and 2013 resulting from the disruption of gas supplies from neighboring Egypt (and which are not expected to resume due to Egypt's decision to indefinitely suspend its gas supply agreement to Israel).<ref>{{cite news|last=Barkat|first=Amiram|title=Israel in talks to export gas via Egypt|url=http://www.globes.co.il/en/article-1000904162|access-date=18 April 2013|newspaper=[[Globes (newspaper)|Globes]]|date=24 December 2013|archive-date=13 October 2017|archive-url=https://web.archive.org/web/20171013150407/http://www.globes.co.il/en/article-1000904162|url-status=live}}</ref><ref>{{cite news|last=Barkat|first=Amiram|script-title=he:עצמאות אנרגטית: החלה הזרמת הגז הטבעי ממאגר "תמר"; צפוי להגיע לישראל תוך 24 שעות|url=http://www.globes.co.il/news/article.aspx?did=1000833050|access-date=30 March 2013|newspaper=[[Globes (newspaper)|Globes]]|date=30 March 2013|language=he|trans-title=Energy Independence: Gas from Tamar Expected to Arrive in 24 Hours|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804130409/https://www.globes.co.il/news/article.aspx?did=1000833050|url-status=live}}</ref> As a result, Israel, as well as its other neighbor Jordan, which also suffered from disruption of gas deliveries from Egypt, had to resort to importing significantly more expensive and polluting liquid heavy fuels as substitute sources of energy. The ensuing energy crisis in Israel was lifted once the Tamar field came online in 2013, while Jordan committed to a US$10 billion, 15-year gas supply deal totaling 45 BCM from the Israeli Leviathan field which is scheduled to come online in late 2019.<ref>{{cite news|title=Leviathan partners say all conditions met to supply natgas to Jordan|url=https://www.reuters.com/article/israel-jordan-natgas/leviathan-partners-say-all-conditions-met-to-supply-natgas-to-jordan-idUSL5N1QP1NO|access-date=10 March 2018|work=[[Reuters]]|date=7 March 2018|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730220544/https://www.reuters.com/article/israel-jordan-natgas/leviathan-partners-say-all-conditions-met-to-supply-natgas-to-jordan-idUSL5N1QP1NO|url-status=live}}</ref> The agreement is estimated to save Jordan US$600 million per year in energy costs.<ref>{{cite news|last1=Omari|first1=Raed|title=Lands for Israel gas pipeline acquired|url=http://www.jordantimes.com/news/local/lands-israel-gas-pipeline-acquired%E2%80%99|access-date=10 March 2018|work=[[The Jordan Times]]|date=8 March 2018|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730223316/http://www.jordantimes.com/news/local/lands-israel-gas-pipeline-acquired%E2%80%99|url-status=live}}</ref> In 2018, the owners of the Tamar and Leviathan fields announced that they are negotiating an agreement with a consortium of Egyptian firms for the supply of up to 64 BCM of gas over 10 years valued at up to US$15 billion.<ref>{{cite news|title=Israel announces major gas deal with Egypt|url=http://www.dw.com/en/israel-announces-major-gas-deal-with-egypt/a-42647022|access-date=10 March 2018|publisher=[[Deutsche Welle]]|date=19 February 2018|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804135113/https://www.dw.com/en/israel-announces-major-gas-deal-with-egypt/a-42647022|url-status=live}}</ref> In early 2012 the Israeli cabinet announced plans to set up a [[sovereign wealth fund]] (called "the [[Israeli Citizens' Fund]]").<ref>{{cite news|title=Cabinet outlines plan for sovereign wealth fund|url=http://www.jpost.com/Business/BusinessNews/Article.aspx?id=258495|access-date=20 February 2012|newspaper=[[The Jerusalem Post]]|date=19 February 2012|author=Shemer, Nadav|author2=Udasin, Sharon|archive-date=27 February 2012|archive-url=https://web.archive.org/web/20120227182904/http://www.jpost.com/Business/BusinessNews/Article.aspx?id=258495|url-status=live}}</ref>

{| class="wikitable"
|-
! Field<ref>[http://www.energytribune.com/articles.cfm?aid=1875 Israel's Natural Gas Bonanza] {{webarchive|url=https://web.archive.org/web/20090722040619/http://www.energytribune.com/articles.cfm?aid=1875 |date=22 July 2009 }}. ''Energy Tribune''. Retrieved on 8 September 2011.</ref>
! Discovered
! Production
! Estimated size
|-
| Noa North
| 1999<ref>{{cite journal|last=Beckwith|first=Robin|title=Israel's Gas Bonanza|journal=Journal of Petroleum Technology|volume=63|issue=3|date=March 2011|url=http://www.spe.org/jpt/print/archives/2011/03/12Israel.pdf|access-date=5 February 2012|page=46|archive-url=https://web.archive.org/web/20120610043943/http://www.spe.org/jpt/print/archives/2011/03/12Israel.pdf|archive-date=10 June 2012|url-status=dead|doi=10.2118/0311-0046-JPT}}</ref>
| 2012 to 2014
| originally, {{convert|50|e9cuft|e9m3|abbr=off}}; field depleted
|-
| Mari-B
| 2000
| 2004 to 2015
| originally, {{convert|1|e12cuft|e9m3|abbr=off}}; field depleted
|-
| [[Tamar gas field|Tamar]]
| 2009
| 2013
| {{convert|10.8|e12cuft|e9m3|abbr=off}}<ref name= TamarUpd/>
|-
| Dalit
| 2009
| Not in production
| {{convert|700|e9cuft|e9m3|abbr=off}}
|-
| [[Leviathan gas field|Leviathan]]
| 2010
| 2019
| {{convert|22|e12cuft|e9m3|abbr=off}}
|-
| Dolphin
| 2011
| Not in production
| {{convert|81.3|e9cuft|e9m3|abbr=off}}<ref>{{cite news|last=Yeshayahou|first=Koby|title=Dolphin gas field estimate cut by 85%|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000723882&fid=1725|access-date=26 July 2012|newspaper=[[Globes (newspaper)|Globes]]|date=12 February 2012|archive-date=17 February 2012|archive-url=https://web.archive.org/web/20120217201408/http://www.globes.co.il/serveen/globes/docview.asp?did=1000723882&fid=1725|url-status=live}}</ref>
|-
| [[Tanin gas field|Tanin]]
| 2012
| Not in production
| {{convert|1.2|-|1.3|e12cuft|e9m3|abbr=off}}
|-
| [[Karish gas field|Karish]]
| 2013
| 2022
| {{convert|2.3|-|3.6|e12cuft|e9m3|abbr=off}}
|}

====Electricity====
{{Main|Electricity sector in Israel}}
{{update|section|date=February 2020}}
[[File:Israel electricity production.svg|thumb|]]
[[File:Israel renewable electricity production.svg|thumb|]]
Since the founding of the state through the mid-2010s decade, the state-owned utility, [[Israel Electric Corporation]] (IEC) had an effective monopoly on power generation in the country. In 2010 the company sold 52,037&nbsp;GWh of electricity. Until the mid-2010s the country also faced a persistently low operating reserve, which is mostly the result of Israel being an "electricity island". Most countries have the capability of relying on power drawn from producers in adjacent countries in the event of a power shortage. Israel's grid however, is unconnected to those of neighboring countries. This is mostly due to political reasons but also to the considerably less-developed nature of the power systems of Jordan and Egypt, whose systems constantly struggle to meet domestic demand and whose per-capita electric generation is less than one fifth that of Israel's. Nevertheless, while operating reserves in Israel were low, the country possessed sufficient generation and transmission capacity to meet domestic electricity needs and unlike in the countries surrounding it, [[rolling blackout]]s have historically been quite rare, even at periods of extreme demand.

Facing the increasing demand for electricity and concerned about the low reserve situation, the government of Israel began taking steps to increase the supply of electricity and operating reserve, as well to reduce the monopoly position of the IEC and increase competition in the [[electricity market]] starting in the second half of the 2000s decade. It instructed the IEC to construct several new power stations and encouraged private investment in the generation sector. By 2015, the IEC's share of total nationwide installed electric generation capacity had fallen to about 75%, with the company then possessing an installed generation capacity of about 13.6 gigawatts (GW). Since 2010, [[Independent Power Producer]]s have constructed three new gas-fired [[combined cycle]] power stations with a total generation capacity of about 2.2 GW, while various industrial concerns constructed on-premises [[cogeneration]] facilities with a total electricity output of about 1 GW, and which are licensed by the electric authority to sell surplus electricity to the national grid at competitive rates. Also under construction is a 300 MW [[Pumped-storage hydroelectricity|pumped storage]] facility, with two more in planning, plus several solar-powered plants.

In addition to the above steps, Israel and [[Cyprus]] are considering implementing the proposed [[EuroAsia Interconnector]] project. This consists of laying a 2000MW [[high-voltage direct current|HVDC]] [[submarine power cable|undersea power cable]] between them and between Cyprus and Greece, thus connecting [[Israel]] to the greater European power grid.<ref>{{cite news|title=Israel, Cyprus in underwater electricity cable deal|url=https://www.google.com/hostednews/afp/article/ALeqM5iqfv2OhTRHvxJ_ehm4cpQJ5-7k5Q|access-date=25 March 2012|date=4 March 2012|agency=[[Agence France-Presse]]|archive-date=26 March 2014|archive-url=https://web.archive.org/web/20140326235608/http://www.google.com/hostednews/afp/article/ALeqM5iqfv2OhTRHvxJ_ehm4cpQJ5-7k5Q|url-status=dead}}</ref> If carried out, this will allow a further increase in the country's operating reserve as well as sell surplus electricity abroad.

In 2016, total nationwide electricity production was 67.2 GWh, of which 55.2% was generated using natural gas and 43.8% using coal – the first time the share of electricity production using natural gas exceeded that generated using coal.

{| class="wikitable"
|+ Share of Total Electricity Generation Capacity at Full Output<br />by Plant Type and Fuel Types Used by the IEC in 2010
!
! Coal
! [[Fuel oil]]
! Natural gas
! [[Diesel fuel|Diesel]]
|- style="text-align:right;"
||'''[[nameplate capacity|Installed capacity]] by plant type'''
||39.7%
||3.4%
||39.8%
||18.9%
|- style="text-align:right;"
||'''Total annual generation by fuel source'''
||61.0%
||0.9%
||36.6%
||1.5%
|}

====Solar power====
{{Main|Solar power in Israel}}
[[File:Solar dish at Ben-Gurion National Solar Energy Center in Israel.jpg|thumb|The [[Negev Desert]] is home to the Israeli solar research industry, in particular the [[National Solar Energy Center]] and the [[Arava Valley]], which is the sunniest area of Israel.|alt=Large solar dish scaffolding at Ben-Gurion National Solar Energy Center.]]
Solar power in Israel and the Israeli solar energy industry has a history that dates to the founding of the country. In the 1950s, [[Levi Yissar]] developed a solar water heater to help assuage an energy shortage in the new country.<ref name= Bach>Petrotyranny by John C. Bacher, [[David Suzuki]], published by Dundurn Press Ltd., 2000; reference is at Page 70 [https://books.google.com/books?id=P7LPZk8NuBgC&dq=Levi+Yissar&pg=PA70 Petrotyranny] {{Webarchive|url=https://web.archive.org/web/20230412035221/https://books.google.com/books?id=P7LPZk8NuBgC&dq=Levi+Yissar&pg=PA70 |date=12 April 2023 }}</ref> By 1967 around one in twenty households heated their water with the sun and 50,000 solar heaters had been sold.<ref name= Bach/> With the [[1973 oil crisis]], [[Harry Zvi Tabor]], the father of Israel's solar industry, developed the prototype solar water heater that is now used in over 90% of Israeli homes.<ref name= BW>{{cite news |title=At the Zenith of Solar Energy |first=Neal |last=Sandler |url=http://www.businessweek.com/stories/2008-03-26/at-the-zenith-of-solar-energybusinessweek-business-news-stock-market-and-financial-advice |archive-url=https://web.archive.org/web/20121105185413/http://www.businessweek.com/stories/2008-03-26/at-the-zenith-of-solar-energybusinessweek-business-news-stock-market-and-financial-advice |url-status=dead |archive-date=5 November 2012 |newspaper=Bloomberg Businessweek |date=26 March 2008 |access-date=17 October 2012}}</ref>

===Industrial manufacturing===
Israel has a large industrial capacity. It has a well-developed chemical industry with many of its products aimed at the export market. Most of the chemical plants are located in [[Ramat Hovav]], the [[Haifa Bay]] area and near the [[Dead Sea]]. [[Israel Chemicals]] is one of the largest fertilizer and chemical companies in Israel and its subsidiary, the [[Dead Sea Works]] in [[Sdom]] is the world's fourth-largest producer and supplier of [[potash]] products.<ref name= H2O>{{cite web |url=http://www.wateronline.com/doc.mvc/Dead-Sea-Works-Sdom-Israel-0001 |title=Case Study: Dead Sea Works – Sdom, Israel |publisher=Water Online |access-date=15 October 2012 |url-status=dead |archive-url=https://archive.today/20130209015523/http://www.wateronline.com/doc.mvc/Dead-Sea-Works-Sdom-Israel-0001 |archive-date=9 February 2013  }}</ref> The company also produces other products such as [[magnesium chloride]], industrial salts, de-icers, bath salts, table salt, and raw materials for the cosmetic industry.<ref name= H2O/> Industrial production of metals, machinery and electrical equipment, construction materials, consumer goods, and textiles, as well as food processing also form a significant part of the manufacturing sector. Machinery and equipment manufactured in Israel includes computer equipment, medical equipment, agricultural equipment, and robots.<ref>{{cite news | url=https://en.globes.co.il/en/article-israels-exports-on-the-rise-1001177295 | title=Medical equipment leads rise in Israel's exports | newspaper=Globes | date=16 February 2017 | access-date=18 March 2022 | archive-date=1 December 2021 | archive-url=https://web.archive.org/web/20211201141337/https://en.globes.co.il/en/article-israels-exports-on-the-rise-1001177295 | url-status=live }}</ref> Israel has a successful [[semiconductor device fabrication]] industry, with several semiconductor manufacturing facilities in the country.<ref>{{Cite web |url=http://images.mofcom.gov.cn/il/accessory/201201/1326371902770.pdf |title=An overview of the Israeli semiconductor industry |access-date=31 March 2022 |archive-date=21 October 2021 |archive-url=https://web.archive.org/web/20211021092619/http://images.mofcom.gov.cn/il/accessory/201201/1326371902770.pdf |url-status=live }}</ref>

One of the country's largest employers is [[Israel Aerospace Industries]] which produces mainly aviation, space, and defense products. In 2017 the company had an order backlog of 11.4 billion US dollars.<ref>{{cite news|last1=Azulai|first1=Yuval|title=בלעדי: מנכ"ל התעשייה האווירית מדבר על הכל בראיון סוער|url=http://www.globes.co.il/news/article.aspx?did=1001207528|access-date=14 October 2017|newspaper=[[Globes (newspaper)|Globes]]|date=13 October 2017|language=he|trans-title=IAI CEO tells all in exclusive interview|archive-date=5 August 2020|archive-url=https://web.archive.org/web/20200805074131/https://www.globes.co.il/news/article.aspx?did=1001207528|url-status=live}}</ref> There are numerous other aerospace companies. Israeli aerospace companies are primarily sub-suppliers, focusing on fields such as machining, electronic systems and components, and composite materials.<ref>{{cite web|title=Aerospace Industry|url=https://investinisrael.gov.il/ExploreIsrael/sectors/Pages/Aerospace.aspx|url-status=live|website=InvestinIsrael.gov.il|archive-url=https://web.archive.org/web/20180702113457/http://investinisrael.gov.il:80/ExploreIsrael/sectors/Pages/Aerospace.aspx |archive-date=2 July 2018 }}</ref> Israel is a major manufacturer and exporter of [[unmanned aerial vehicle]]s.<ref>{{Cite web |url=https://www.jpost.com/israel-news/how-israel-became-a-leader-in-drone-technology-595209 |title=How Israel became a leader in drone technology |date=13 July 2019 |access-date=18 March 2022 |archive-date=18 March 2022 |archive-url=https://web.archive.org/web/20220318223538/https://www.jpost.com/israel-news/how-israel-became-a-leader-in-drone-technology-595209 |url-status=live }}</ref> Israel also has a significant pharmaceutical industry and is home to [[Teva Pharmaceutical Industries]], one of the world's largest pharmaceutical companies, which employed 40,000 people as of 2011. It specializes in [[generic drug|generic]] and proprietary pharmaceuticals and active pharmaceutical ingredients. It is the largest generic drug manufacturer in the world and one of the 15 largest pharmaceutical companies worldwide.<ref>{{cite web|url=http://www.fiercepharma.com/special-reports/top-10-generic-drug-companies-2010/teva-top-10-generic-drug-companies-2010|archive-url=https://web.archive.org/web/20110424201744/http://www.fiercepharma.com/special-reports/top-10-generic-drug-companies-2010/teva-top-10-generic-drug-companies-2010|url-status=dead|archive-date=24 April 2011|title=Teva – Top 10 Generic Drug Companies 2010 – FiercePharma|date=24 April 2011}}</ref><ref>{{cite web|url=http://www.biojerusalem.org.il/database_company.asp?ID=76|archive-url=https://web.archive.org/web/20110721143023/http://www.biojerusalem.org.il/database_company.asp?ID=76|url-status=dead|archive-date=21 July 2011|title=Teva Pharmaceutical Industries – Jerusalem – BioJerusalem|date=21 July 2011|access-date=19 January 2019}}</ref> In addition, Israel also has a shipbuilding industry through the company [[Israel Shipyards]], which has one of the largest shipbuilding and repair facilities in the Eastern Mediterranean. For the civilian market, it builds merchant ships and other civilian watercraft as well as machinery for ports and heavy industries. It also builds naval craft for the defense market.<ref>{{Cite web |url=https://www.israel-shipyards.com/recent-deliveries.asp |title=Shipyard's Deliveries |access-date=1 September 2021 |archive-date=5 April 2023 |archive-url=https://web.archive.org/web/20230405213030/https://www.israel-shipyards.com/recent-deliveries.asp |url-status=live }}</ref><ref>{{Cite web |url=https://www.shlomo.co.il/group/protfolio/israel-shipyards-ltd-isl |title=Israel Shipyards (ISL) |access-date=1 September 2021 |archive-date=1 September 2021 |archive-url=https://web.archive.org/web/20210901231323/https://www.shlomo.co.il/group/protfolio/israel-shipyards-ltd-isl |url-status=dead }}</ref>

====Diamond industry====
{{Main|Diamond industry in Israel}}
Israel is one of the world's three major centers for [[Diamond cutting|polished]] [[diamonds]], alongside Belgium and India. Israel's net polished diamond exports slid 22.8 percent in 2012 as polished diamond exports fell to $5.56 billion from $7.2 billion in 2011. Net exports of rough diamonds dropped 20.1 percent to $2.8 billion and net exports of polished diamonds slipped 24.9 percent to $4.3 billion, while net rough diamond imports dropped 12.9 percent to $3.8 billion. Net exports and imports dropped during the [[Great Recession]], particularly within the Eurozone, affected by the [[European sovereign-debt crisis]], and the United States. The United States is the largest market accounting for 36% of overall export market for polished diamonds while Hong Kong remains at second with 28 percent and Belgium at 8 percent coming in third.<ref>{{cite web|url=https://www.jewellerybusiness.com/news/israel-s-2012-polished-diamond-exports-decline/|title=Israel's 2012 polished diamond exports decline|date=5 January 2013|website=Jewellery Business|access-date=19 January 2019|archive-date=18 November 2018|archive-url=https://web.archive.org/web/20181118095820/https://www.jewellerybusiness.com/news/israel-s-2012-polished-diamond-exports-decline/|url-status=live}}</ref><ref>{{cite news | url=http://www.ynetnews.com/articles/0,7340,L-4332282,00.html | title=Diamond Exports | newspaper=Ynetnews | date=15 January 2013 | access-date=16 January 2013 | archive-date=29 November 2018 | archive-url=https://web.archive.org/web/20181129103246/https://www.ynetnews.com/articles/0,7340,L-4332282,00.html | url-status=live }}</ref><ref>{{cite news | url=http://uk.reuters.com/article/2013/01/02/uk-israel-diamonds-exports-idUKBRE9010CH20130102 | work=Reuters| first=Steven | last=Scheer | title=Israel 2012 diamond exports fall, may rebound if no more crises | date=2 January 2013 | access-date=17 January 2013 | archive-date=24 June 2018 | archive-url=https://web.archive.org/web/20180624041250/https://uk.reuters.com/article/uk-israel-diamonds-exports/israel-2012-diamond-exports-fall-may-rebound-if-no-more-crises-idUKBRE9010CH20130102 | url-status=dead }}</ref><ref>{{cite web|url=http://www.diamonds.net/News/NewsItem.aspx?ArticleID=41965&ArticleTitle=Israels+Polished+Diamond+Exports+-22%25+in+2012|title=Diamonds.net – Israel's Polished Diamond Exports −22% in 2012|date=3 January 2013|website=diamonds.net|access-date=19 January 2019|archive-date=5 August 2020|archive-url=https://web.archive.org/web/20200805081232/https://www.diamonds.net/News/NewsItem.aspx?ArticleID=41965&ArticleTitle=Israels+Polished+Diamond+Exports+-22%25+in+2012|url-status=live}}</ref> {{As of|2016}}, cut diamonds were Israel's largest export product, comprising 23.2% of all exports.<ref name ="OEC" />

====Defense contracting====
{{main|Defense industry in Israel}}
Israel is one of the world's major exporters of military equipment, accounting for 10% of the world total in 2007. Three Israeli companies were listed on the 2010 [[Stockholm International Peace Research Institute]] index of the world's top 100 arms-producing and military service companies: [[Elbit Systems]], [[Israel Aerospace Industries]] and [[RAFAEL]].<ref>{{cite news|last=Rosenberg |first=Israel David |title=For arms, Mideast is buyer's, not a seller's, market |url=http://gantdaily.com/2012/02/27/for-arms-mideast-is-buyers-not-a-sellers-market/ |access-date=6 March 2012 |newspaper=Gant Daily |date=27 February 2012 |agency=The Media Line |location=[[Jerusalem]], Israel |url-status=dead |archive-url=https://web.archive.org/web/20140701070903/http://gantdaily.com/2012/02/27/for-arms-mideast-is-buyers-not-a-sellers-market/ |archive-date=1 July 2014  }}</ref><ref>{{cite web|title=The SIPRI Top 100 arms-producing and military services companies, 2010 |url=http://www.sipri.org/research/armaments/production/Top100 |publisher=[[Stockholm International Peace Research Institute]] |access-date=6 March 2012 |url-status=dead |archive-url=https://web.archive.org/web/20110524090136/http://www.sipri.org/research/armaments/production/Top100 |archive-date=24 May 2011  }}</ref> The Defense industry in Israel is a strategically important sector and a large employer within the country. It is also a major player in the global arms market and is the 11th largest arms exporter in the world as of 2012.<ref name= SIPRI>[http://armstrade.sipri.org/armstrade/page/toplist.php Top List TIV Tables-SIPRI] {{Webarchive|url=https://web.archive.org/web/20130214003447/http://armstrade.sipri.org/armstrade/page/toplist.php |date=14 February 2013 }}. Armstrade.sipri.org. Retrieved on 9 May 2012.</ref> Total arms transfer agreements topped 12.9 billion between 2004 and 2011.<ref>{{cite web|url=https://www.jpost.com/Defense/Israel-among-top-arms-exporters-and-importers|title=Israel among top arms exporters and importers – Defense – Jerusalem Post|website=The Jerusalem Post|date=28 August 2012|access-date=19 January 2019|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730233750/https://www.jpost.com/Defense/Israel-among-top-arms-exporters-and-importers|url-status=live}}</ref> Israeli defense equipment exports have reached 7 billion U.S. dollars in 2012, making it a 20 percent increase from the amount of defense-related exports in 2011. Much of the exports are sold to the United States and Europe. Other major regions that purchase Israeli defense equipment include [[Southeast Asia]] and [[Latin America]].<ref>{{cite web|url=http://www.armyrecognition.com/january_2013_army_military_defense_industry_news/defense_equipment_and_arms_exports_from_israel_to_reach_7_billion_in_2012_1101134.html|archiveurl=https://web.archive.org/web/20130118233505/http://www.armyrecognition.com/january_2013_army_military_defense_industry_news/defense_equipment_and_arms_exports_from_israel_to_reach_7_billion_in_2012_1101134.html|url-status=dead|title=Defense equipment and arms exports from Israel to reach $7 billion in 2012 1101134 – Army Recognition<!-- Bot generated title -->|archivedate=18 January 2013}}</ref><ref>{{cite news|url=https://www.haaretz.com/.premium-israel-arms-sales-leaped-20-in-2012-1.5223822|title=Israel's Arms Exports Increased by 20 Percent in 2012|first=Amos|last=Harel|date=10 January 2013|access-date=19 January 2019|newspaper=Haaretz|archive-date=31 July 2020|archive-url=https://web.archive.org/web/20200731015821/https://www.haaretz.com/.premium-israel-arms-sales-leaped-20-in-2012-1.5223822|url-status=live}}</ref><ref>{{cite news|url=https://www.haaretz.com/israel-news/business/.premium-military-industries-bask-in-iron-dome-success-1.5199537|title=Israel's Arms Industry Hoping Success of Iron Dome Will Bring It Sales|first=Ora|last=Coren|date=22 November 2012|access-date=19 January 2019|newspaper=Haaretz|archive-date=31 July 2020|archive-url=https://web.archive.org/web/20200731024534/https://www.haaretz.com/israel-news/business/.premium-military-industries-bask-in-iron-dome-success-1.5199537|url-status=live}}</ref> [[India]] is also major country for Israeli arms exports and has remained Israel's largest arms market in the world.<ref>{{cite web|url=https://www.brookings.edu/opinions/israel-india-new-allies/|title=Israel & India: New Allies|first=Bruce|last=Riedel|date=30 November 2001|access-date=19 January 2019|archive-date=15 July 2020|archive-url=https://web.archive.org/web/20200715034902/https://www.brookings.edu/opinions/israel-india-new-allies/|url-status=live}}</ref><ref>{{cite news |url=http://articles.economictimes.indiatimes.com/2012-09-23/news/34022998_1_defence-supplier-india-and-israel-anti-ballistic-missile-systems |work=The Times of India |title=$10 bn business: How Israel became India's most important partner in arms bazaar |date=23 September 2012 |access-date=16 January 2013 |archive-date=5 March 2016 |archive-url=https://web.archive.org/web/20160305025921/http://articles.economictimes.indiatimes.com/2012-09-23/news/34022998_1_defence-supplier-india-and-israel-anti-ballistic-missile-systems |url-status=dead }}</ref> Israel is considered to be the leading [[UAV]] exporter in the world.<ref>[http://www.upi.com/Business_News/Security-Industry/2013/04/26/Israel-builds-up-its-war-robot-industry/UPI-54601367005342/ Israel builds up its war robot industry] {{Webarchive|url=https://web.archive.org/web/20200804135600/http://www.upi.com/Business_News/Security-Industry/2013/04/26/Israel-builds-up-its-war-robot-industry/UPI-54601367005342/ |date=4 August 2020 }}. United Press International. 26 April 2013.</ref> According to the [[Stockholm International Peace Research Institute]], Israeli defense companies were behind 41% of all drones exported in 2001–2011.<ref>[http://defense-update.com/20130503_israel-as-unmanned-air-systems-super-power.html "Israel – an unmanned air systems (UAS) super power"] {{Webarchive|url=https://web.archive.org/web/20200806011346/http://defense-update.com/20130503_israel-as-unmanned-air-systems-super-power.html |date=6 August 2020 }}. Defense Update.</ref> Israel's defense exports in 2021 reached US$11.2 billion in sales. Exports to Arab countries that joined the [[Abraham Accords]] made up 7% of all Israeli defense exports.<ref>{{cite news|url=https://www.jpost.com/israel-news/article-703910|title=Defense exports in 2021 reach 20-year high with $11.2b in sales|first=Anna|last=Ahronheim|date=12 April 2022|access-date=13 April 2022|work=The Jerusalem Post|archive-date=13 April 2022|archive-url=https://web.archive.org/web/20220413012352/https://www.jpost.com/israel-news/article-703910|url-status=live}}</ref>

===Tourism===
{{Main|Tourism in Israel}}
Israel is a major tourist destination, especially for those of [[Jewish]] ancestry, with 4.55 million foreign tourists visiting the country in 2019 (about one tourist per two Israelis),<ref name=":2">{{cite news |title=Israel welcomes record-breaking 4.55 million tourists in 2019 |work=The Jerusalem Post |url=https://www.jpost.com/israel-news/israel-welcomes-record-breaking-455-million-tourists-in-2019-612456 |access-date=19 February 2021 |archive-date=2 February 2021 |archive-url=https://web.archive.org/web/20210202010854/https://www.jpost.com/Israel-News/Israel-welcomes-record-breaking-455-million-tourists-in-2019-612456 |url-status=live }}</ref><ref name=":3">{{cite web |date=29 December 2019 |title=Israel Welcomes Record 4.55 Million Tourists In 2019, Says Ministry |url=https://nocamels.com/2019/12/israel-record-4-55-million-tourists-2019/ |access-date=19 February 2021 |website=NoCamels |archive-date=21 June 2021 |archive-url=https://web.archive.org/web/20210621101127/https://nocamels.com/2019/12/israel-record-4-55-million-tourists-2019/ |url-status=live }}</ref> yielding a 25% growth since 2016 and contributed [[Israeli new shekel|₪]]20 billion to the economy, making it an all-time record at that time.<ref name= xin>{{cite web|last=Yan|date=3 January 2018|title=Israel sees record 3.6 mln inbound tourists in 2017|url=http://www.xinhuanet.com/english/2018-01/03/c_136867704.htm|archive-url=https://web.archive.org/web/20180124195618/http://www.xinhuanet.com/english/2018-01/03/c_136867704.htm|url-status=dead|archive-date=24 January 2018|agency=Xinhua News Agency}}</ref><ref name= IL21c1>{{cite web|last=Amir|first=Rebecca Stadlen|date=3 January 2018|title=Israel sets new record with 3.6 million tourists in 2017|url=https://www.israel21c.org/israel-sets-new-record-with-3-6-million-tourists-in-2017/|website=Israel21|access-date=24 January 2018|archive-date=24 June 2019|archive-url=https://web.archive.org/web/20190624233112/https://www.israel21c.org/israel-sets-new-record-with-3-6-million-tourists-in-2017/|url-status=live}}</ref><ref name= auto4>{{cite news|last=Raz-Chaimovich|first=Michal|date=27 December 2017|title=Record 3.6m tourists visit Israel in 2017|url=http://www.globes.co.il/en/article-record-36m-tourists-visit-israel-in-2017-1001217309|website=Globes|access-date=28 January 2018|archive-date=14 September 2018|archive-url=https://web.archive.org/web/20180914131914/http://www.globes.co.il/en/article-record-36m-tourists-visit-israel-in-2017-1001217309|url-status=live}}</ref><ref name= auto5>{{cite web|date=4 January 2018|title=Israel Sees Record 3.6 Million Tourists in 2017|url=http://www.atlantajewishtimes.timesofisrael.com/israel-sees-record-3-6-million-tourists-in-2017|url-status=dead|archive-url=https://web.archive.org/web/20180111022050/http://atlantajewishtimes.timesofisrael.com/israel-sees-record-3-6-million-tourists-in-2017/|archive-date=11 January 2018|website=Atlanta Jewish Times}}</ref> The most popular paid visited [[tourist attraction|site]] is [[Masada]].<ref name= Ynet08>{{cite news |url=http://www.ynetnews.com/articles/0,7340,L-3698864,00.html |title=Masada tourists' favorite spot in Israel |newspaper=[[Ynetnews]] |date=8 April 2009 |access-date=8 April 2009 |last1=Timor |first1=Ilai |archive-date=22 November 2018 |archive-url=https://web.archive.org/web/20181122125335/https://www.ynetnews.com/articles/0,7340,L-3698864,00.html |url-status=live }}</ref>

==External trade==
{{See also|Foreign relations of Israel|Free trade agreements of Israel}}
[[File:Israel exports bubble map 2016.png|thumb|Map of Israeli exports in 2016|alt=World map of Israeli exports in 2016]]
In 2016, Israeli goods exports totaled US$55.8 billion.<ref>{{cite web |url= https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/all/show/2016/ |title= OEC – Products exported by Israel (2016) |publisher= Atlas.media.mit.edu |access-date= 12 March 2018 |archive-date= 13 May 2019 |archive-url= https://web.archive.org/web/20190513002856/https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/all/show/2016/ |url-status= dead }}</ref> It imported US$61.9 billion worth of goods in the same year.<ref>{{cite web |url=https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/all/show/2016/ |title=OEC – Products imported by Israel (2016) |publisher=Atlas.media.mit.edu |access-date=12 March 2018 |archive-date=11 May 2019 |archive-url=https://web.archive.org/web/20190511212513/https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/all/show/2016/ |url-status=dead }}</ref> In 2017 total exports (goods and services) amounted to US$102.3 billion, while imports totaled $96.7 billion.<ref>{{cite web|url=https://www.cbs.gov.il/he/Pages/default.aspx|title=הלשכה המרכזית לסטטיסטיקה – cbs.gov.il|website=cbs.gov.il|access-date=31 May 2021|archive-date=14 April 2020|archive-url=https://web.archive.org/web/20200414113825/https://www.cbs.gov.il/he/pages/default.aspx|url-status=live}}</ref>
Israel usually posts a modest trade deficit in goods. Its main goods imports consist of raw materials, crude oil, production inputs and finished consumer goods. Most of its exports are high-value-added items such as electronic components and other high-technology equipment, tools, and machinery, [[Diamond cutting|cut]] diamonds, refined petrochemicals, and pharmaceuticals. It normally posts a substantial trade surplus in services thanks to tourism and service industries such as software development, engineering services, and biomedical and scientific research and development. Therefore, overall external trade is positive, contributing to a significant [[Current account (balance of payments)|current account]] surplus which as of 2017 stood at 4.7% of GDP.<ref name= CIA/>

The United States is Israel's largest trading partner, and Israel is the United States' 26th-largest trading partner;<ref>{{cite web |url=http://www.ustr.gov/countries-regions/europe-middle-east/middle-east/north-africa/israel |title=MAX – Unsupported Browser Warning |publisher=Ustr.gov |access-date=28 January 2018 |archive-url=https://web.archive.org/web/20180129140431/https://ustr.gov/countries-regions/europe-middle-east/middle-east/north-africa/israel |archive-date=29 January 2018 |url-status=dead }}</ref> two-way trade totaled some $24.5&nbsp;billion in 2010, up from $12.7&nbsp;billion in 1997. The principal U.S. exports to Israel include computers, integrated circuits, aircraft parts and other defense equipment, wheat, and automobiles. Israel's chief exports to the U.S. include cut diamonds, jewelry, [[integrated circuit]]s, printing machinery, and telecommunications equipment. The two countries signed a [[free trade]] agreement (FTA) in 1985 that progressively eliminated [[tariff]]s on most goods traded between the two countries over the following ten years. An agricultural trade accord was signed in November 1996, which addressed the remaining goods not covered in the FTA. Some non-tariff barriers and tariffs on goods remain, however. Israel also has trade and cooperation agreements in place with the [[European Union]] and Canada, and is seeking to conclude such agreements with a number of other countries, including [[Turkey]], Jordan and several countries in Eastern Europe.

In regional terms, the European Union is the top destination for Israeli exports. In the four-month period between October 2011 and January 2012, Israel exported goods totalling $5 billion to the EU – amounting to 35% of Israel's overall exports. During the same period, Israeli exports to [[East Asia]] and the [[Far East]] totaled some $3.1 billion.<ref>{{cite news |title=Asia overtakes U.S. as target market for Israeli exports |url=http://www.haaretz.com/business/asia-overtakes-u-s-as-target-market-for-israeli-exports-1.416761 |access-date=6 March 2012 |newspaper=[[Haaretz]] |date=6 March 2012 |author=Coren, Ora |author2=Bassok, Moti |archive-date=24 September 2015 |archive-url=https://web.archive.org/web/20150924050139/http://www.haaretz.com/business/asia-overtakes-u-s-as-target-market-for-israeli-exports-1.416761 |url-status=live }}</ref>

Until 1995, Israel's trade with the [[Arab world]] was minimal due to the [[Arab League boycott]], which was begun against the Jewish community of Palestine in 1945. Arab nations not only refused to have direct trade with Israel (the primary boycott), but they also refused to do business with any corporation that operated in Israel (secondary boycott), or any corporation that did business with a corporation that did business with Israel (tertiary boycott).

In 2013, commercial trade between Israel and the [[Palestinian territories]] were valued at US$20 billion annually.<ref>{{cite news|url=https://www.ynetnews.com/articles/0,7340,L-4361410,00.html|title=Israeli-Palestinian business arbitration center established|date=28 March 2013|website=Ynetnews|access-date=19 January 2019|last1=Kane|first1=Hadar|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730223732/https://www.ynetnews.com/articles/0,7340,L-4361410,00.html|url-status=live}}</ref>

In 2012, ten companies were responsible for 47.7% of Israel's exports. These companies were [[Intel]] Israel, [[Elbit Systems]], [[Oil Refineries Ltd]], [[Teva Pharmaceuticals]], [[Iscar]], [[Israel Chemicals]], [[Makhteshim Agan]], [[Paz Oil Company]], [[Israel Aerospace Industries]] and the [[Indigo Digital Press|Indigo division of Hewlett-Packard]]. The Bank of Israel and Israel's Export Institute have warned that the country is too dependent on a small number of exporters.<ref>{{cite news|last=Cohen|first=Ora|title=Israel 'dangerously reliant on handful of exports'|url=http://www.haaretz.com/business/israel-dangerously-reliant-on-handful-of-exports.premium-1.534670|access-date=9 July 2013|newspaper=Haaretz|date=9 July 2013|archive-date=9 July 2013|archive-url=https://web.archive.org/web/20130709071529/http://www.haaretz.com/business/israel-dangerously-reliant-on-handful-of-exports.premium-1.534670|url-status=live}}{{subscription required|s}}</ref>

===Export destinations and import origins===

{|
|-
|
{| class="wikitable sortable"
|+ Top ten export destinations for Israel in 2016
!&nbsp;!!Country/Area!!Volume (bln. US $)!!% of exports!!Primary export(s)
|-
|1
|{{flag|United States}}
|17.6
|32%
|[[Diamond cutting|Cut diamonds]], medicaments<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/usa/show/2016/ |title=OEC – Products that Israel exports to the United States (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 |archive-date=17 June 2019 |archive-url=https://web.archive.org/web/20190617231249/https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/usa/show/2016/ |url-status=dead }}</ref>
|-
|2
|{{flag|Hong Kong}}
|4.44
|8%
|Cut diamonds<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/hkg/show/2016/ |title=OEC – Products that Israel exports to Hong Kong (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|3
|{{flagicon|United Kingdom}} [[United Kingdom]]
|3.91
|7%
|Medicaments<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/gbr/show/2016/ |title=OEC – Products that Israel exports to the United Kingdom (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|4
|{{flag|China}}
|3.33
|6%
|Electrical equipment, integrated circuits<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/chn/show/2016/ |title=OEC – Products that Israel exports to China (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|5
|{{flag|Belgium}} / {{flag|Luxembourg}}
|2.51
|4.5%
|Cut diamonds (as of 2015)<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/blx/show/2015/ |title=OEC – Products that Israel exports to Belgium-Luxembourg (2015) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 |archive-date=22 April 2017 |archive-url=https://web.archive.org/web/20170422034145/http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/blx/show/2015/ |url-status=dead }}</ref>
|-
|6
|{{flag|India}}
|2.4
|4.3%
|Cut diamonds<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/ind/show/2016/ |title=OEC – Products that Israel exports to India (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|7
|{{flag|Netherlands}}
|2.14
|3.8%
|Medicaments, computer equipment<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/nld/show/2016/ |title=OEC – Products that Israel exports to the Netherlands (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|8
|{{flag|Germany}}
|1.52
|2.7%
|Varied<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/deu/show/2016/ |title=OEC – Products that Israel exports to Germany (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|9
|{{flag|Switzerland}}
|1.47
|2.6%
|Cut diamonds<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/che/show/2016/ |title=OEC – Products that Israel exports to Switzerland (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|10
|{{flag|France}}
|1.45
|2.6%
|Varied<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/fra/show/2016/ |title=OEC – Products that Israel exports to France (2016) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|- class="sortbottom"
|colspan="5"|<small>Source: [http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/show/all/2016/ The Observatory of Economic Complexity] {{Webarchive|url=https://web.archive.org/web/20190511085821/http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/isr/show/all/2016/ |date=11 May 2019 }}, MIT</small>
|}
|
{| class="wikitable sortable"
|+ Top ten import origins for Israel in 2016
!&nbsp;!!Country!!Volume (bln. US $)!!% of imports!!Primary import(s)
|-
|1
|{{flag|United States}}
|8.1
|13%
|Diamonds, electronics<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/usa/show/2016/ |title=What does Israel import from the United States (2016) |publisher=Atlas.media.mit.edu |access-date=5 May 2018 |archive-date=17 June 2019 |archive-url=https://web.archive.org/web/20190617231249/https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/usa/show/2016/ |url-status=dead }}</ref>
|-
|2
|{{flag|China}} (not including Hong Kong)
|5.9
|9.5%
|Varied<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/chn/show/2016/ |title=What does Israel import from China (2016) |publisher=Atlas.media.mit.edu |access-date=5 May 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|3
|{{flag|Switzerland}}
|4.29
|6.9%
|Oil, chemicals, diamonds<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/che/show/2016/ |title=What does Israel import from Switzerland (2016) |publisher=Atlas.media.mit.edu |access-date=5 May 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|4
|{{flag|Germany}}
|4.07
|6.6%
|Varied<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/deu/show/2016/ |title=What does Israel import from Germany (2016) |publisher=Atlas.media.mit.edu |access-date=5 May 2018 }}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|5
|{{flag|Belgium}} / {{flag|Luxembourg}}
|3.91
|6.3%
|Diamonds (as of 2015)<ref>{{cite web |url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/blx/show/2015/ |title=What does Israel import from Belgium-Luxembourg (2015) |publisher=Atlas.media.mit.edu |access-date=28 January 2018 |archive-date=22 April 2017 |archive-url=https://web.archive.org/web/20170422033551/http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/blx/show/2015/ |url-status=dead }}</ref>
|-
|6
|{{flag|United Kingdom}}
|3.67
|5.9%
|Oil<ref>{{cite web|url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/gbr/show/2016/|title=What does Israel import from the United Kingdom? (2016)|year=2017|publisher=[[The Observatory of Economic Complexity]]|access-date=5 May 2018}}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|7
|{{flag|Netherlands}}
|2.7
|4.4%
|Computers and electronics<ref>{{cite web|url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/nld/show/2016/|title=What does Israel import from the Netherlands? (2016)|year=2017|publisher=[[The Observatory of Economic Complexity]]|access-date=5 May 2018}}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|8
|{{flag|Italy}}
|2.69
|4.4%
|Varied<ref>{{cite web|url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/ita/show/2016/|title=What does Israel import from Italy? (2016)|year=2017|publisher=[[The Observatory of Economic Complexity]]|access-date=5 May 2018}}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|-
|9
|{{flag|Turkey}}
|2.6
|4.2%
|Varied<ref>{{cite web|url=http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/tur/show/2015/|title=Products that Israel imports from Turkey (2015)|website=The Observatory of Economic Complexity|access-date=19 January 2019|archive-date=22 April 2017|archive-url=https://web.archive.org/web/20170422032946/http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/tur/show/2015/|url-status=dead}}</ref>
|-
|10
|{{flag|Japan}}
|2.35
|3.8%
|Cars, photo lab equipment<ref>{{cite web|url=https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/jpn/show/2016/|title=What does Israel import from Japan? (2016)|year=2017|publisher=[[The Observatory of Economic Complexity]]|access-date=5 May 2018}}{{Dead link|date=January 2021 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
|- class="sortbottom"
|colspan="5"|<small>Source: [http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/show/all/2016/ The Observatory of Economic Complexity] {{Webarchive|url=https://web.archive.org/web/20190511220413/http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/isr/show/all/2016/ |date=11 May 2019 }}, MIT</small>
|}
|}

==Rankings==
{{Further|International rankings of Israel}}

The [[Global Competitiveness Report]] of 2016 to 2017 ranked Israel as having the world's second most innovative economy.<ref>{{cite web|url=https://www.weforum.org/agenda/2016/11/the-most-innovative-countries-in-the-world/|title=The most innovative country in the world takes top spot again|website=World Economic Forum|date=2 November 2016|access-date=21 January 2017|archive-date=17 May 2020|archive-url=https://web.archive.org/web/20200517224256/https://www.weforum.org/agenda/2016/11/the-most-innovative-countries-in-the-world/|url-status=live}}</ref>{{update inline|date=March 2021}} It was also ranked [[List of countries by Human Development Index|19th among 189]] world nations on the UN's [[Human Development Index]]. As of 2018, Israel ranks 20th out of 133 countries on the [[economic complexity index]]. The IMD World Competitiveness Yearbook of 2016 ranked Israel's economy as world 21st most competitive out of the 61 economies surveyed.<ref>{{cite web|url=http://www.imd.org/uupload/imd.website/wcc/scoreboard.pdf|title=The 2016 IMD World Competitiveness Scoreboard|date=30 May 2016|website=IMD World Competitiveness Center|access-date=21 January 2017|archive-date=9 August 2017|archive-url=https://web.archive.org/web/20170809042808/http://www.imd.org/uupload/imd.website/wcc/scoreboard.pdf|url-status=live}}</ref> The Israeli economy was ranked as the world's most durable economy in the face of crises, and was also ranked first in the rate research and development center investments.<ref name= ynet>[http://www.ynetnews.com/articles/0,7340,L-3891801,00.html 'Israel's economy most durable in face of crises'] {{Webarchive|url=https://web.archive.org/web/20190924050922/http://www.ynetnews.com/articles/0,7340,L-3891801,00.html |date=24 September 2019 }}. Ynet News (20 May 2010). Retrieved on 8 September 2011.</ref> The Bank of Israel was ranked first among central banks for its efficient functioning, up from the 8th place in 2009. Israel was ranked first also in its supply of skilled manpower.<ref name= ynet/> Israeli companies, particularly in the high-tech area, have enjoyed considerable success raising money on [[Wall Street]] and other world financial markets: {{as of|2010|lc=y}} Israel ranked second among foreign countries in the number of its companies listed on U.S. stock exchanges.<ref>[http://www.ishitech.co.il/stock_page.htm U.S. listed Israeli companies] {{Webarchive|url=https://web.archive.org/web/20200222090843/http://www.ishitech.co.il/stock_page.htm |date=22 February 2020 }}. Ishitech.co.il. Retrieved on 8 September 2011.</ref>

Having moved away from the socialist economic model since the mid-1980s and early 1990s, Israel has made dramatic moves toward the free-market capitalist paradigm. {{As of|2020}}, Israel's economic freedom score is 74.0, making its economy the 26th freest in the 2020 [[Index of Economic Freedom]]. Israel ranks 35th on the [[World Bank]]'s [[ease of doing business index]].  Israel's economic competitiveness is helped by strong protection of [[property rights]], relatively low corruption levels, and high openness to global trade and investment. Income and corporate tax rates remain relatively high.<ref name= freedom>{{cite web |url=http://www.heritage.org/index/country/israel |title=Israel |publisher=The Heritage Foundation |access-date=31 January 2021 |archive-date=21 May 2020 |archive-url=https://web.archive.org/web/20200521222539/https://www.heritage.org/index/country/israel |url-status=unfit }}</ref> {{As of|2020}}, Israel ranks 35th out of 179 countries in [[Transparency International]]'s [[Corruption Perceptions Index]]. Bribery and other forms of corruption are illegal in Israel, which is a signatory to the [[OECD Bribery Convention]] since 2008.<ref name= freedom/>

In April 2024, one of the three leading US credit rating agencies, [[Fitch Ratings|Fitch]], issued a warning that the [[Gaza war]] could result in a significant decline in Israel's credit metrics. In August 2024, Fitch downgraded Israel's credit rating. The credit rating of Israel was downgraded to Baa1 by another agency, [[Moody's Ratings|Moody's]], in the upcoming month. In October 2024, Israel was also downgraded by the third agency, [[S&P Global Ratings|S&P]].<ref>{{cite news |last1=Nolan |first1=Delaney |title=Millions in bonds for Israel put US states at odds with investment policies |url=https://www.aljazeera.com/features/2024/12/23/millions-in-bonds-for-israel-put-us-states-at-odds-with-investment-policies |agency=Al-Jazeera |date=23 Dec 2024}}</ref>

==See also==
{{Portal|Israel|Business and economics}}
{{Div col}}
* [[Economy of the Middle East]]
* [[Energy Triangle]]
* [[Fishing industry in Israel]]
* [[List of companies of Israel]]
* [[List of largest companies in Israel]]
* [[Ministry of Finance (Israel)]]
* [[Privatization in Israel]]
* [[Standard of living in Israel]]
* [[Taxation in Israel]]
* [[Tel Aviv Stock Exchange]]
* [[Trajtenberg Committee]]
* [[Transport in Israel]]

{{div col end}}

==References==
{{Reflist|25em|refs=
<!--unused<ref name= SnP>{{cite web |title=Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/us?sectorName=null&filter=I |access-date=26 May 2011}}</ref>-->
<!--unused<ref name= guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |location=UK |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=31 May 2011}}</ref>-->
<ref name= Gas>{{cite news |title=What a gas! |newspaper=[[The Economist]] |url=http://www.economist.com/node/17468208 |date=11 November 2010 |access-date=18 November 2010 |archive-date=12 February 2018 |archive-url=https://web.archive.org/web/20180212032527/http://www.economist.com/node/17468208 |url-status=live }}</ref>
<ref name = "Gas1">{{cite news | last= Buck | first= Tobias | title= Field of dreams: Israel's natural gas | url= http://www.ft.com/cms/s/2/1dbda574-f16d-11e1-a553-00144feabdc0.html | access-date= 2 September 2012 | newspaper= [[Financial Times]]|location=London | date= 31 August 2012 | archive-date= 6 May 2016 | archive-url= https://web.archive.org/web/20160506234201/http://www.ft.com/cms/s/2/1dbda574-f16d-11e1-a553-00144feabdc0.html | url-status= live }}</ref>
}}

==Further reading==
* Argov, Eyal. "The Development of Education in Israel and its Contribution to Long-Term Growth" (No. 2016.15. Bank of Israel, 2016) [https://www.boi.org.il/en/Research/Periodicals/Documents/Vol.16%20No.1/ISER1601.pdf online] {{Webarchive|url=https://web.archive.org/web/20221217161319/https://www.boi.org.il/en/Research/Periodicals/Documents/Vol.16%20No.1/ISER1601.pdf |date=17 December 2022 }}.
* Shalev, Michael. ''Labour and the Political Economy in Israel''. Oxford: Oxford University Press, 1992.
* Ben-Porath, Yoram ed. ''The Israeli Economy: Maturing through Crises''. Cambridge, [[Massachusetts|MA]]: Harvard University Press, 1986.
* Chill, Dan. ''The Arab Boycott of Israel: Economic Aggression and World Reaction''. New York: Praeger, 1976.
* Kanovsky, Eliyahu. ''The Economy of the Israeli Kibbutz''. Cambridge, MA: Harvard University Press, 1966.
* Klein, Michael. ''A Gemara of the Israel Economy''. Cambridge, MA: National Bureau of Economic Research, 2005.
* Michaely, Michael. ''Foreign Trade Regimes and Economic Development: Israel''. New York: National Bureau of Economic Research, 1975.
* <cite id=Ram2008>{{cite book |title=The Globalization of Israel: McWorld in Tel Aviv, Jihad in Jerusalem |last=Ram |first=Uri |publisher=Routledge |year=2008 |location=New York |isbn = 978-0-415-95304-7}}</cite>
* {{citation | last = Seliktar | first = Ofira | contribution = The Changing Political Economy of Israel: From Agricultural Pioneers to the "Silicon Valley" of the Middle East | title = Israel's First Fifty Years | editor-first = Robert | editor-last = Freedman | pages = 197–218 | place = Gainesville, [[Florida|FL]] | publisher = University of Florida Press | year = 2000}}.
* [[Dan Senor|Senor, Dan]] and [[Saul Singer|Singer, Saul]], ''[[Start-up Nation]]: The Story of Israel's Economic Miracle'', Hachette, New York (2009) {{ISBN|0-446-54146-X}}
* Rubner, Alex. ''The Economy of Israel: A Critical Account of the First Ten Years''. New York: Frederick A Praeger, 1960.
* {{citation | last1 = Aharoni | first1 = Sara | last2 = Aharoni | first2 = Meir | year = 2005 | title = Industry & Economy in Israel | url = http://www.israelbooks.com/bookDetails.asp?book=489 | publisher = Israel books | access-date = 14 December 2006 | archive-date = 12 December 2006 | archive-url = https://web.archive.org/web/20061212124948/http://israelbooks.com/bookDetails.asp?book=489 | url-status = dead }}.
* Maman, Daniel and Rosenhek, Zeev. ''The Israeli Central Bank: Political Economy: Global Logics & Local Actors''. Routledge, 2011.
* [http://bnarchives.yorku.ca/8/ ''The Global Political Economy of Israel''] {{Webarchive|url=https://web.archive.org/web/20150214060634/http://bnarchives.yorku.ca/8/ |date=14 February 2015 }}

==External links==
{{commons category}}
* {{citation | url = http://www.financeisrael.mof.gov.il/FinanceIsrael/Pages/En/Home.aspx | type = official website | title = Finance Israel | publisher = [[Ministry of Finance (Israel)|Israel Ministry of Finance]] | access-date = 14 March 2012 | archive-url = https://web.archive.org/web/20120307002834/http://www.financeisrael.mof.gov.il/FinanceIsrael/Pages/En/Home.aspx | archive-date = 7 March 2012 | url-status = dead }}.
* [http://www.imf.org/external/country/ISR/  Israel and the IMF] {{Webarchive|url=https://web.archive.org/web/20050824043709/http://www.imf.org/external/country/ISR/ |date=24 August 2005 }}, [[International Monetary Fund]]
* [http://wits.worldbank.org/CountryProfile/Country/ISR/Year/2012/Summary World Bank Trade Summary Statistics Israel 2012] {{Webarchive|url=https://web.archive.org/web/20140705131751/http://wits.worldbank.org/CountryProfile/Country/ISR/Year/2012/Summary |date=5 July 2014 }}
* {{citation | url = http://www.oecd.org/israel/ | title = Israel | publisher = [[Organisation for Economic Co-operation and Development]] | access-date = 17 October 2012 | archive-date = 12 October 2012 | archive-url = https://web.archive.org/web/20121012114633/https://www.oecd.org/israel/ | url-status = live }}.
* {{citation | url = http://www.heritage.org/index/country/israel | title = Israel Economy | publisher = [[The Heritage Foundation]] | access-date = 19 March 2012 | archive-date = 21 May 2020 | archive-url = https://web.archive.org/web/20200521222539/https://www.heritage.org/index/country/israel | url-status = unfit }}.
* Tariffs applied by Israel as provided by ITC's [http://www.macmap.org/QuickSearch/FindTariff/FindTariff.aspx?subsite=open_access&country=376&source=1 ITC Market Access Map]{{Dead link|date=August 2019 |bot=InternetArchiveBot |fix-attempted=yes }}, an online database of customs tariffs and market requirements
* [https://web.archive.org/web/20150712133305/https://investigativedashboard.org/business_registries/?country=IL Investigative Dashboard List of Israel Company Registries]
* Hebrew documents about the recession in Israel 1966–1967:
* [http://israelidocuments.blogspot.co.il/2016/02/50-1967-1966.html ישראל – הסיפור המתועד: "האחרון שיוצא שיכבה את האור" – 50 שנה למיתון 1966 – 1967] {{Webarchive|url=https://web.archive.org/web/20170613192829/http://israelidocuments.blogspot.co.il/2016/02/50-1967-1966.html |date=13 June 2017 }}

{{Economy of Israel}}
{{Organisation for Economic Co-operation and Development}}
{{World Trade Organization}}
{{Asia topic|Economy of}}
{{Israel topics}}

{{DEFAULTSORT:Economy of Israel}}
[[Category:Economy of Israel| ]]
[[Category:OECD member economies|Israel]]
[[Category:World Trade Organization member economies|Israel]]