Economy Of Israel

Economy overview Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy grew at 1% in 2003, with improvements in tourism and foreign direct investment. In 2004, rising business and consumer confidence - as well as higher demand for Israeli exports boosted GDP by 2.7%.
 
GDP purchasing power parity - $120.9 billion (2004 est.)
 
GDP - real growth rate 1.3% (2004 est.)
 
GDP - per capita purchasing power parity - $19,800 (2004 est.)
 
GDP - composition by sector
agriculture: 2.8%
industry: 37.7%
services: 59.5% (2003 est.)
 
Investment gross fixed 17.2% of GDP (2004 est.)
 
Population below poverty line 18% (2001 est.)
 
Household income or consumption by percentage share
lowest 10%: 2.4%
highest 10%: 28.3% (1997)
 
Distribution of family income - Gini index 35.5 (2001)
 
Inflation rate consumer prices 0.7% (2004 est.)
 
Labor force 2.61 million (2004 est.)
 
Labor force by occupation agriculture, forestry, and fishing 2.6%, manufacturing 20.2%, construction 7.5%, commerce 12.8%, transport, storage, and communications 6.2%, finance and business 13.1%, personal and other services 6.4%, public services 31.2% (1996)
 
Unemployment rate 10.7% (2004 est.)
 
Budget
revenues: $44.98 billion
expenditures: $51.07 billion, including capital expenditures of NA (2004 est.)
 
Public debt 108.6% of GDP (2004 est.)
 
Agriculture products citrus, vegetables, cotton; beef, poultry, dairy products
 
Industries high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, diamond cutting
 
Industrial production growth rate -0.6% (2004 est.)
 
Electricity production 42.24 billion kWh (2001)
 
Electricity production by source
fossil fuel: 99.9%
hydro: 0.1%
other: 0% (2001)
nuclear: 0%
 
Electricity consumption 37.82 billion kWh (2001)
 
Electricity exports 1.457 billion kWh (2001)
 
Electricity imports 0 kWh (2001)
 
Oil production 80 bbl/day (2001 est.)
 
Oil consumption 260,000 bbl/day (2001 est.)
 
Oil exports NA (2001)
 
Oil imports NA (2001)
 
Oil proved reserves 1.92 million bbl (1 January 2002)
 
Natural gas production 10 million cu m (2001 est.)
 
Natural gas consumption 10 million cu m (2001 est.)
 
Natural gas exports 0 cu m (2001 est.)
 
Natural gas imports 0 cu m (2001 est.)
 
Natural gas proved reserves 20.81 billion cu m (1 January 2002)
 
Current account balance $-174 million (2004 est.)
 
Exports $29.32 billion f.o.b. (2004 est.)
 
Exports commodities machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
 
Exports partners US 38.4%, Belgium 7.4%, Hong Kong 4.8% (2003)
 
Imports $32.27 billion f.o.b. (2003 est.)
 
Imports commodities raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
 
Imports partners US 15.6%, Belgium 9.3%, Germany 8%, UK 6.7%, Switzerland 6.1%, Italy 4.1% (2003)
 
Reserves of foreign exchange gold $26.32 billion (2004 est.)
 
Debt external $70.97 billion (2004 est.)
 
Economic aid recipient $662 million from US (2003 est.)
 
Currency new Israeli shekel (ILS); note - NIS is the currency abbreviation; ILS is the International Organization for Standarization (ISO) code for the NIS
 
Currency code ILS
 
Exchange rates new Israeli shekels per US dollar - 4.5541 (2003), 4.7378 (2002), 4.2057 (2001), 4.0773 (2000), 4.1397 (1999)
 
Fiscal year calendar year

 

 

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This information was reproduced in part from the CIA World Fact book.

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