Israel Economy

June 29, 2010Israelby EconomyWatch

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Israel has a market economy that is technologically advanced with decreasing participation from the government. The country has pronounced expertise in electronic and biomedical products, chemicals and transport equipment. GDP growth was 5.3% in 2007.

Israel is deficient in natural resources and is dependent upon regular and consistent imports of coal, petroleum, uncut diamonds, and food. The country's GDP (purchasing power parity) in 2007 was $185.8 billion-comparable to European Union constituents. Economy grew at a fast clip of 5.4% in 2007. GDP per capita with regard to Israel was $26,600 (2007). The services sector comprised 67.1% of GDP-closely followed by industry (30.2%) and agriculture (2.7%). Inflation rate with respect to consumer prices was 0.5%.

High technology sectors comprise more approximately 20% of Israel's total exports. More than $14 billion worth of goods were exported in 2007. List of export items included telecommunications equipment, integrated circuits and printing machinery. Other items manufactured include paper and wood products, cement, plastics, chemical products, tobacco, footwear and caustic soda. Agricultural activity constituted approximately 2.8% of the nation's GDP. Growth in industrial production was 4.1% (2007). United States is a major importing country for Israeli goods with 35% of total production making its way into the country. Hong Kong (5.8%) is another major importer.

The Israeli diamond cutting industry is one of world's major centers in cutting and polishing of the precious stone. Tel Aviv is known as an influential software development center. The signing of Free Trade Agreements (FTA) with the United States, European Union, Canada, Egypt and Jordan has boosted Israel's economic growths further.

Israel imported $55.79 billion f.o.b in 2007. List of commodities imported include rough diamonds, consumer goods, raw materials, and military equipment. Currency of Israel is the new Israeli shekel (ILS).

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