Israel - Economic Indicators
Economic Roundup: U.S. New-Home Sales Coming Back Down to Earth
May 25, 2021
Download the full version of the Economic Roundup The decline in U.S. new-home sales isn’t concerning, as they were coming back down to Earth. New-home sales fell 5.9% to 863,000 annualized units in April. The decline was larger than our below-consensus forecast. Sales fell in three of the four census regions. With the release of April new-home sales, the Census Bureau incorporated its annual revisions. The revisions affected sales, units for...
| GDP | Reference | Last | Previous | Units | Frequency |
|---|---|---|---|---|---|
| Private Consumption | 2021 Q1 | 174,705 | 174,906 | Mil. ILS, NSA | Quarterly |
| Nominal Fixed Investment (gross fixed capital formation) | 2021 Q1 | 74,147 | 79,516 | Mil. ILS, NSA | Quarterly |
| Government Consumption | 2021 Q1 | 82,596 | 86,976 | Mil. ILS, NSA | Quarterly |
| Nominal Gross Domestic Product | 2021 Q1 | 350,778 | 360,505 | Mil. ILS, NSA | Quarterly |
| Investment | 2021 Q1 | 82,502 | 80,850 | Mil. ILS, NSA | Quarterly |
| Real Investment | 2016 | 227,949,424,800 | 210,888,827,300 | NCU | Annual |
| Real Fixed Investment (gross fixed capital formation) | 2016 | 226,171,820,500 | 202,138,195,100 | NCU | Annual |
| Price | Reference | Last | Previous | Units | Frequency |
| Consumer Price Index (CPI) | Jun 2021 | 101.3 | 101 | Index 2020=100, SA | Monthly |
| Wholesale Price Index | Jun 2021 | 107.6 | 107.2 | Index 2020=100, NSA | Monthly |
| Labor | Reference | Last | Previous | Units | Frequency |
| Total Employment | Jun 2021 | 3,945 | 3,869 | Ths. #, SA | Monthly |
| Labor Force Employment | Jun 2021 | 3,942 | 3,875 | Ths. #, NSA | Monthly |
| Labor Force | Jun 2021 | 4,167 | 4,084 | Ths. #, NSA | Monthly |
| Unemployment | Jun 2021 | 225.19 | 209.29 | Ths. #, NSA | Monthly |
| Unemployment Rate | Jun 2021 | 5.23 | 5.51 | %, SA | Monthly |
| Primary Industries Employment | 2020 Q4 | 35.26 | 35.02 | Ths. #, SA | Quarterly |
| Agriculture Employment | 2017 | 43,218 | 42,539 | # | Annual |
| Wage & Salaries | 2017 Q1 | 119.69 | 118.86 | Index 2005=100 | Quarterly |
| Trade | Reference | Last | Previous | Units | Frequency |
| Exports of Goods | Jun 2021 | 3,856 | 4,207 | Mil. USD, SA | Monthly |
| Imports of Goods | Jun 2021 | 7,256 | 7,074 | Mil. USD, SA | Monthly |
| Current Account Balance | 2021 Q1 | 4,749 | 6,230 | Mil. USD, NSA | Quarterly |
| Net Exports | 2021 Q1 | 10,973 | 17,772 | Mil. ILS, NSA | Quarterly |
| Imports of Goods and Services | 2021 Q1 | 89,213 | 88,941 | Mil. ILS, NSA | Quarterly |
| Exports of Goods and Services | 2021 Q1 | 100,187 | 106,713 | Mil. ILS, NSA | Quarterly |
| Real Imports of Goods and Services | 2016 | 369,835,287,700 | 338,042,716,800 | NCU | Annual |
| Real Exports of Goods and Services | 2016 | 344,869,514,200 | 336,309,389,300 | NCU | Annual |
| Government | Reference | Last | Previous | Units | Frequency |
| Outstanding Public Debt | 2021 Q1 | 1,050,820 | 1,006,733 | Mil. ISL, NSA | Quarterly |
| Outstanding Public Debt - Domestic | 2021 Q1 | 888,645 | 846,154 | Mil. ISL, NSA | Quarterly |
| Outstanding Public Debt - Foreign | 2021 Q1 | 162,175 | 160,579 | Mil. ISL, NSA | Quarterly |
| Gross External Debt | 2020 Q4 | 65,285,000,000 | 62,433,000,000 | USD, NSA | Quarterly |
| Government Budget Balance | Jan 2018 | 4,796 | -21,483 | Mil. ILS, NSA | Monthly |
| Government Revenues | Jan 2018 | 30,367 | 23,276 | Mil. ILS, NSA | Monthly |
| Government Expenditures | Jan 2018 | 25,571 | 44,759 | Mil. ILS, NSA | Monthly |
| Markets | Reference | Last | Previous | Units | Frequency |
| Stock Market Index | 29 Jul 2021 | 1,763 | 1,755 | Index, NSA | Daily |
| Treasury Bills (over 31 days) | Apr 2021 | 0.01 | -0.01 | % p.a., NSA | Monthly |
| Average Long-term Government Bond | Aug 2020 | 0.65 | 0.63 | %, NSA | Monthly |
| Lending Rate | 2016 | 3.48 | 3.45 | % | Annual |
| Real Estate | Reference | Last | Previous | Units | Frequency |
| House Price Index | Apr 2021 | 451.2 | 448.1 | Index 1993=100, NSA | Monthly |
| Building Completions | 2021 Q1 | 11,168 | 11,580 | #, SA | Quarterly |
| House Price Value for Existing Homes | 2017 Q4 | 1,442 | 1,495 | Ths. ILS, NSA | Quarterly |
| Consumer | Reference | Last | Previous | Units | Frequency |
| Real Retail Sales | May 2021 | 102 | 109.2 | Index 2020=100, SA | Monthly |
| Personal Income | 2018 | 21,063 | 20,027 | ISL | Annual |
| Business | Reference | Last | Previous | Units | Frequency |
| Industrial Production | May 2021 | 117.4 | 119.4 | Index 2011=100, SA | Monthly |
| Change in Inventories | 2021 Q1 | 8,355 | 1,333 | Mil. ILS, NSA | Quarterly |
| Demographics | Reference | Last | Previous | Units | Frequency |
| Population | May 2021 | 9,354 | 9,341 | Ths., NSA | Monthly |
| Births | Apr 2021 | 14,698 | 15,624 | #, NSA | Monthly |
| Deaths | Apr 2021 | 3,970 | 4,457 | #, NSA | Monthly |
| Net Migration | 2017 | 50,002 | # | Annual | |
| Death Rate | 2016 | 5.1 | # per Ths. pop. | Annual | |
| Birth Rate | 2012 | 21.6 | # per Ths. pop. | Annual |
Factbook
Background
Background:
The State of Israel was declared in 1948, after Britain withdrew from its mandate of Palestine, the UN proposed partitioning the area into Arab and Jewish states, and Arab armies that rejected the UN plan were defeated. Israel was admitted as a member of the UN in 1949 and saw rapid population growth, primarily due to migration from Europe and the Middle East, over the following years. Israel fought wars against its Arab neighbors in 1967 and 1973, followed by peace treaties with Egypt in 1979 and Jordan in 1994. Israel and Palestinian officials signed a number of interim agreements in the 1990s that created an interim period of Palestinian self-rule in the West Bank and Gaza Strip, which Israel occupied in 1967. The most recent effort to negotiate final status issues took place in 2013-2014. Immigration to Israel continues, with 28,600 new immigrants, mostly Jewish, in 2016. The Israeli economy has undergone a dramatic transformation in the last 25 years, led by cutting-edge, high-tech sectors. Offshore gas discoveries in the Mediterranean, most notably in the Tamar and Leviathan gas fields, place Israel at the center of a potential regional natural gas market. However, longer-term structural issues such as low labor force participation among minority populations, low workforce productivity, high costs for housing and consumer staples, and a lack of competition, remain a concern for many Israelis and an important consideration for Israeli politicians. Prime Minister Benjamin NETANYAHU has led the Israeli Government since 2009; he formed the current center-right coalition following the 2015 elections.
Geography
Location:
Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon
Geographic coordinates:
31 30 N, 34 45 E
Map references:
Middle East
Area:
total: 20,770 sq km
land: 20,330 sq km
water: 440 sq km
country comparison to the world: 154
Area - comparative:
slightly larger than New Jersey
Area comparison map:
Land boundaries:
total: 1,068 km
border countries (6): Egypt 208 km, Gaza Strip 59 km, Jordan 307 km, Lebanon 81 km, Syria 83 km, West Bank 330 km
Coastline:
273 km
Maritime claims:
territorial sea: 12 nm
continental shelf: to depth of exploitation
Climate:
temperate; hot and dry in southern and eastern desert areas
Terrain:
Negev desert in the south; low coastal plain; central mountains; Jordan Rift Valley
Elevation:
mean elevation: 508 m
elevation extremes: lowest point: Dead Sea -431 m
highest point: Har Meron 1,208 m
Natural resources:
timber, potash, copper ore, natural gas, phosphate rock, magnesium bromide, clays, sand
Land use:
agricultural land: 23.8%
arable land 13.7%; permanent crops 3.8%; permanent pasture 6.3%
forest: 7.1%
other: 69.1% (2011 est.)
Irrigated land:
2,250 sq km (2012)
Population - distribution:
population concentrated in and around Tel-Aviv, as well as around the Sea of Galilee; the south remains sparsely populated with the exception of the shore of the Gulf of Aqaba
Natural hazards:
sandstorms may occur during spring and summer; droughts; periodic earthquakes
Environment - current issues:
limited arable land and restricted natural freshwater resources; desertification; air pollution from industrial and vehicle emissions; groundwater pollution from industrial and domestic waste, chemical fertilizers, and pesticides
Environment - international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling
signed, but not ratified: Marine Life Conservation
Geography - note:
Lake Tiberias (Sea of Galilee) is an important freshwater source; the Dead Sea is the second saltiest body of water in the world (after Lake Assal in Djibouti); in 2017, there were 422 settlements in the Israeli-occupied territories - 42 settlements in the Golan Heights, 380 sites in the occupied Palestinian territories to include 213 settlements and 132 outposts in the West Bank, and 35 settlements in East Jerusalem; there are no Israeli settlements in the Gaza Strip, as all were evacuated in 2005 (2017)
People & Society
Population:
8,299,706 (July 2017 est.) (includes populations of the Golan Heights of Golan Sub-District and also East Jerusalem, which was annexed by Israel after 1967)
note: approximately 22,000 Israeli settlers live in the Golan Heights (2016); approximately 201,000 Israeli settlers live in East Jerusalem (2014)
country comparison to the world: 97
Nationality:
noun: Israeli(s)
adjective: Israeli
Ethnic groups:
Jewish 74.7% (of which Israel-born 76.3%, Europe/America/Oceania-born 16.2%, Africa-born 4.8%, Asia-born 2.7%), non-Jewish 25.2% (mostly Arab) (2016 est.)
Languages:
Hebrew (official), Arabic (used officially for Arab minority), English (most commonly used foreign language)
Religions:
Jewish 74.7%, Muslim 17.7%, Christian 2%, Druze 1.6%, other 4% (2016 est.)
religious affiliation:
Age structure:
0-14 years: 27.51% (male 1,168,351/female 1,114,902)
15-24 years: 15.53% (male 658,572/female 630,675)
25-54 years: 37.17% (male 1,577,187/female 1,507,793)
55-64 years: 8.46% (male 344,922/female 357,301)
65 years and over: 11.33% (male 421,660/female 518,343) (2017 est.)
population pyramid:
Dependency ratios:
total dependency ratio: 64.2
youth dependency ratio: 45.7
elderly dependency ratio: 18.4
potential support ratio: 5.4 (2015 est.)
Median age:
total: 29.9 years
male: 29.3 years
female: 30.6 years (2017 est.)
country comparison to the world: 119
Population growth rate:
1.51% (2017 est.)
country comparison to the world: 76
Birth rate:
18.1 births/1,000 population (2017 est.)
country comparison to the world: 96
Death rate:
5.2 deaths/1,000 population (2017 est.)
country comparison to the world: 187
Net migration rate:
2.2 migrant(s)/1,000 population (2017 est.)
country comparison to the world: 43
Population distribution:
population concentrated in and around Tel-Aviv, as well as around the Sea of Galilee; the south remains sparsely populated with the exception of the shore of the Gulf of Aqaba
Urbanization:
urban population: 92.3% of total population (2017)
rate of urbanization: 1.5% annual rate of change (2015-20 est.)
Major urban areas - population:
Tel Aviv-Yafo 3.608 million; Haifa 1.097 million; JERUSALEM (proclaimed capital) 839,000 (2015)
Sex ratio:
at birth: 1.05 male(s)/female
0-14 years: 1.05 male(s)/female
15-24 years: 1.05 male(s)/female
25-54 years: 1.05 male(s)/female
55-64 years: 0.96 male(s)/female
65 years and over: 0.81 male(s)/female
total population: 1.01 male(s)/female (2017 est.)
Mother's mean age at first birth:
27.6 years (2015 est.)
Maternal mortality ratio:
5 deaths/100,000 live births (2015 est.)
country comparison to the world: 170
Infant mortality rate:
total: 3.4 deaths/1,000 live births
male: 3.4 deaths/1,000 live births
female: 3.5 deaths/1,000 live births (2017 est.)
country comparison to the world: 204
Life expectancy at birth:
total population: 82.5 years
male: 80.7 years
female: 84.5 years (2017 est.)
country comparison to the world: 12
Total fertility rate:
2.64 children born/woman (2017 est.)
country comparison to the world: 71
Health expenditures:
7.8% of GDP (2014)
country comparison to the world: 59
Physicians density:
3.58 physicians/1,000 population (2015)
Hospital bed density:
3.1 beds/1,000 population (2013)
Drinking water source:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
Sanitation facility access:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
HIV/AIDS - adult prevalence rate:
NA
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Obesity - adult prevalence rate:
26.1% (2016)
country comparison to the world: 45
Education expenditures:
5.7% of GDP (2014)
country comparison to the world: 57
Literacy:
definition: age 15 and over can read and write
total population: 97.8%
male: 98.7%
female: 96.8% (2011 est.)
School life expectancy (primary to tertiary education):
total: 16 years
male: 16 years
female: 16 years (2014)
Unemployment, youth ages 15-24:
total: 8.6%
male: 8.2%
female: 9.1% (2016 est.)
country comparison to the world: 132
Government
Country name:
conventional long form: State of Israel
conventional short form: Israel
local long form: Medinat Yisra'el
local short form: Yisra'el
etymology: named after the ancient Kingdom of Israel; according to Biblical tradition, the Jewish patriarch Jacob received the name "Israel" ("He who struggles with God") after he wrestled an entire night with an angel of the Lord; Jacob's 12 sons became the ancestors of the Israelites, also known as the Twelve Tribes of Israel, who formed the Kingdom of Israel
Government type:
parliamentary democracy
Capital:
name: Jerusalem; note - the US recognized Jerusalem as Israel’s capital in December 2017 without taking a position on the specific boundaries of Israeli sovereignty
geographic coordinates: 31 46 N, 35 14 E
time difference: UTC+2 (7 hours ahead of Washington, DC, during Standard Time)
daylight saving time: +1hr, Friday before the last Sunday in March; ends the last Sunday in October
Administrative divisions:
6 districts (mehozot, singular - mehoz); Central, Haifa, Jerusalem, Northern, Southern, Tel Aviv
Independence:
14 May 1948 (from League of Nations mandate under British administration)
National holiday:
Independence Day, 14 May (1948); note - Israel declared independence on 14 May 1948, but the Jewish calendar is lunar and the holiday may occur in April or May
Constitution:
history: no formal constitution; some functions of a constitution are filled by the Declaration of Establishment (1948), the Basic Laws, and the Law of Return (as amended)
amendments: proposed by Government of Israel ministers or by the Knesset; passage requires a majority vote of Knesset members and subject to Supreme Court judicial review; 11 of the 13 Basic Laws have been amended at least once, latest in 2018 (2018)
Legal system:
mixed legal system of English common law, British Mandate regulations, and Jewish, Christian, and Muslim religious laws
International law organization participation:
has not submitted an ICJ jurisdiction declaration; withdrew acceptance of International Criminal Court jurisdiction in 2002
Citizenship:
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of Israel
dual citizenship recognized: yes, but naturalized citizens are not allowed to maintain dual citizenship
residency requirement for naturalization: 3 out of the 5 years preceding the application for naturalization
note: Israeli law (Law of Return, 5 July 1950) provides for the granting of citizenship to any Jew - defined as a person being born to a Jewish mother or having converted to Judaism while renouncing any other religion - who immigrates to and expresses a desire to settle in Israel on the basis of the Right of aliyah; the 1970 amendment of this act extended the right to family members including the spouse of a Jew, any child or grandchild, and the spouses of children and grandchildren
Suffrage:
18 years of age; universal; 17 years of age for municipal elections
Executive branch:
chief of state: President Reuven RIVLIN (since 27 July 2014)
head of government: Prime Minister Binyamin NETANYAHU (since 31 March 2009, most recently reformed on 15 May 2015)
cabinet: Cabinet selected by prime minister and approved by the Knesset
elections/appointments: president indirectly elected by the Knesset for a 7-year term (limited to 1 term); election last held on 10 June 2014 (next to be held in 2021 but can be called earlier); following legislative elections, the president, in consultation with party leaders, tasks a Knesset member (usually the member of the largest party) with forming a government
election results: Reuven RIVLIN elected president in second round; Knesset vote - Reuven RIVLIN (Likud) 63, Meir SHEETRIT (The Movement) 53, other/invalid 4
Legislative branch:
description: unicameral Knesset (120 seats; members directly elected in a single nationwide constituency by proportional representation vote; members serve 4-year terms)
elections: last held on 17 March 2015 (next to be held by 5 November 2019 but can be called earlier)
election results: percent of vote by party - Likud 23.4%, Zionist Camp 18.7%, Joint List 10.5%, Yesh Atid 8.8%, Kulanu 7.5%, The Jewish Home 6.7%, Shas, 5.7%, Yisrael Beitenu 5.1%, UTJ 5.0%, Meretz 3.9%, Yachad 3.0%, other 1.7%; seats by party - Likud 30, Zionist Camp 24, Joint List 13, Yesh Atid 11, Kulanu 10, The Jewish Home 8, Shas 7, Yisrael Beitenu 6, UTJ 6, Meretz 5
Judicial branch:
highest court(s): Supreme Court (consists of the chief justice and 14 judges)
judge selection and term of office: judges selected by the Judicial Selection Committee consisting of 3 Supreme Court judges, 2 Cabinet members including the Minister of Justice as chairman, 2 Knesset members, and 2 representatives from the Israel Bar Association; judges can serve up to mandatory retirement at age 70
subordinate courts: Court for Administrative Matters; district and magistrate courts; national and regional labor courts; special and religious courts
Political parties and leaders:
Balad [Jamal ZAHALKA]
Democratic Front for Peace and Equality or HADASH [Ayman ODEH]
Israeli Labor Party [Avi GABBAY]
Joint List [Ayman ODEH] (coalition includes Balad, HADASH, United Arab List, and Ta'al))
Kulanu [Moshe KAHLON]
Likud [Binyamin NETANYAHU]
Meretz [Tamar ZANDBERG]
SHAS [Arye DERI]
Ta'al (Arab Movement for Renewal) [Ahmad TIBI]
Tekumah/National Union (Ichud Leumi) [Uri ARIEL]
The Jewish Home (Habayit Hayehudi) [Naftali BENNETT]
The Movement (Hatnuah) [Tzipora "Tzipi" LIVNI]
United Arab List [Masud GANAIM]
United Torah Judaism or UTJ [Yaakov LITZMAN] (an alliance of three parties)
Yachad [Eli YISHAI]
Yesh Atid [Yair LAPID]
Yisrael Beiteinu [Avigdor LIEBERMAN]
Political pressure groups and leaders:
Breaking the Silence or BtS [Avner GVARYAHU] collects testimonies from soldiers who served in the West Bank and Gaza Strip
B'Tselem [Hagai EL-AD] (monitors human rights abuses)
Peace Now (supports territorial concessions in the West Bank and Gaza Strip)
YESHA Council [Hananel DORANI] (promotes settler interests and opposes territorial compromise)
International organization participation:
BIS, BSEC (observer), CE (observer), CERN, CICA, EBRD, FAO, IADB, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, OAS (observer), OECD, OPCW (signatory), OSCE (partner), Pacific Alliance (observer), Paris Club, PCA, SELEC (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO
Diplomatic representation in the US:
chief of mission: Ambassador Ron DERMER (since 3 December 2013)
chancery: 3514 International Drive NW, Washington, DC 20008
telephone: [1] (202) 364-5500
FAX: [1] (202) 364-5607
consulate(s) general: Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New York, Philadelphia, San Francisco
Diplomatic representation from the US:
note: on 14 May 2018, the US Embassy relocated to Jerusalem from Tel Aviv, replacing the site of the Jerusalem Consulate General
chief of mission: Ambassador David M. FRIEDMAN (since 23 May 2017)
embassy: David Flusser St.14, Jerusalem, 9378322
telephone: [972] (2) 630-4000
FAX: NA
consular agent: Haifa
Flag description:
white with a blue hexagram (six-pointed linear star) known as the Magen David (Star of David or Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag; the basic design resembles a traditional Jewish prayer shawl (tallit), which is white with blue stripes; the hexagram as a Jewish symbol dates back to medieval times
note: the Israeli flag proclamation states that the flag colors are sky blue and white, but the exact shade of blue has never been set and can vary from a light to a dark blue
National symbol(s):
Star of David (Magen David), menorah (seven-branched lampstand); national colors: blue, white
National anthem:
name: "Hatikvah" (The Hope)
lyrics/music: Naftali Herz IMBER/traditional, arranged by Samuel COHEN
note: adopted 2004, unofficial since 1948; used as the anthem of the Zionist movement since 1897; the 1888 arrangement by Samuel COHEN is thought to be based on the Romanian folk song "Carul cu boi" (The Ox Driven Cart)
Economy
Economy - overview:
Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.
Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018, with consumers benefitting from low inflation and a strong currency.
In the long term, Israel faces structural issues including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
GDP (purchasing power parity):
$315.6 billion (2017 est.)
$306.1 billion (2016 est.)
$294.5 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 55
GDP (official exchange rate):
$348 billion (2017 est.)
GDP - real growth rate:
3.1% (2017 est.)
4% (2016 est.)
2.6% (2015 est.)
country comparison to the world: 109
GDP - per capita (PPP):
$36,200 (2017 est.)
$35,800 (2016 est.)
$35,200 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 53
Gross national saving:
24.2% of GDP (2017 est.)
24.1% of GDP (2016 est.)
24.6% of GDP (2015 est.)
country comparison to the world: 58
GDP - composition, by end use:
household consumption: 55.4%
government consumption: 22%
investment in fixed capital: 20.5%
investment in inventories: 0.2%
exports of goods and services: 29.8%
imports of goods and services: -27.9% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 2.3%
industry: 26.6%
services: 69.5% (2017 est.)
Agriculture - products:
citrus, vegetables, cotton; beef, poultry, dairy products
Industries:
high-technology products (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, pharmaceuticals, construction, metal products, chemical products, plastics, cut diamonds, textiles, footwear
Industrial production growth rate:
4% (2017 est.)
country comparison to the world: 71
Labor force:
4.021 million (2017 est.)
country comparison to the world: 93
Labor force - by occupation:
agriculture: 1.1%
industry: 17.3%
services: 81.6% (2015 est.)
Unemployment rate:
4.3% (2017 est.)
4.8% (2016 est.)
country comparison to the world: 56
Population below poverty line:
22%
note: Israel's poverty line is $7.30 per person per day (2014 est.)
Household income or consumption by percentage share:
lowest 10%: 1.7%
highest 10%: 31.3% (2010 est.)
Distribution of family income - Gini index:
42.8 (2013 est.)
39.2 (2008 est.)
country comparison to the world: 49
Budget:
revenues: $92.82 billion
expenditures: $102.1 billion (2017 est.)
Taxes and other revenues:
26.7% of GDP (2017 est.)
country comparison to the world: 106
Budget surplus (+) or deficit (-):
-2.7% of GDP (2017 est.)
country comparison to the world: 104
Public debt:
59.5% of GDP (2017 est.)
60.7% of GDP (2016 est.)
country comparison to the world: 76
Fiscal year:
calendar year
Inflation rate (consumer prices):
0.2% (2017 est.)
-0.5% (2016 est.)
country comparison to the world: 15
Central bank discount rate:
0.1% (15 December 2015 est.)
0.25% (31 December 2014 est.)
country comparison to the world: 145
Commercial bank prime lending rate:
3.3% (31 December 2017 est.)
3.42% (31 December 2016 est.)
country comparison to the world: 166
Stock of narrow money:
$98.28 billion (31 December 2017 est.)
$79.58 billion (31 December 2016 est.)
country comparison to the world: 40
Stock of broad money:
$223.1 billion (31 December 2017 est.)
$189 billion (31 December 2016 est.)
country comparison to the world: 37
Stock of domestic credit:
$280.8 billion (31 December 2017 est.)
$257.5 billion (31 December 2016 est.)
country comparison to the world: 39
Market value of publicly traded shares:
$243.9 billion (31 December 2015 est.)
$200.5 billion (31 December 2014 est.)
$203.3 billion (31 December 2013 est.)
country comparison to the world: 31
Current account balance:
$14.28 billion (2017 est.)
$11.57 billion (2016 est.)
country comparison to the world: 19
Exports:
$60.6 billion (2017 est.)
$56.17 billion (2016 est.)
country comparison to the world: 46
Exports - commodities:
machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
Exports - partners:
US 29.3%, Hong Kong 7.4%, UK 6.5%, China 5.5%, Belgium 4.2% (2016)
Imports:
$66.76 billion (2017 est.)
$63.54 billion (2016 est.)
country comparison to the world: 44
Imports - commodities:
raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
Imports - partners:
US 12.2%, China 8.9%, Switzerland 6.4%, Germany 6.1%, Belgium 5.9%, UK 5.5%, Netherlands 4.1%, Italy 4% (2016)
Reserves of foreign exchange and gold:
$113 billion (31 December 2017 est.)
$95.45 billion (31 December 2016 est.)
country comparison to the world: 24
Debt - external:
$93.02 billion (31 December 2017 est.)
$87.96 billion (31 December 2016 est.)
country comparison to the world: 51
Stock of direct foreign investment - at home:
$119.4 billion (31 December 2017 est.)
$107.3 billion (31 December 2016 est.)
country comparison to the world: 43
Stock of direct foreign investment - abroad:
$106.9 billion (31 December 2017 est.)
$98.11 billion (31 December 2016 est.)
country comparison to the world: 35
Exchange rates:
new Israeli shekels (ILS) per US dollar -
3.61 (2017 est.)
3.84 (2016 est.)
3.84 (2015 est.)
3.89 (2014 est.)
3.58 (2013 est.)
Energy
Electricity access:
electrification - total population: 100% (2016)
Electricity - production:
60.44 billion kWh (2015 est.)
country comparison to the world: 48
Electricity - consumption:
52.78 billion kWh (2015 est.)
country comparison to the world: 49
Electricity - exports:
5.2 billion kWh (2016 est.)
country comparison to the world: 36
Electricity - imports:
0 kWh (2016 est.)
country comparison to the world: 162
Electricity - installed generating capacity:
17.22 million kW (2015 est.)
country comparison to the world: 47
Electricity - from fossil fuels:
95.5% of total installed capacity (2015 est.)
country comparison to the world: 53
Electricity - from nuclear fuels:
0% of total installed capacity (2015 est.)
country comparison to the world: 112
Electricity - from hydroelectric plants:
0% of total installed capacity (2015 est.)
country comparison to the world: 181
Electricity - from other renewable sources:
4.9% of total installed capacity (2015 est.)
country comparison to the world: 99
Crude oil - production:
390 bbl/day (2016 est.)
country comparison to the world: 95
Crude oil - exports:
0 bbl/day (2016 est.)
country comparison to the world: 141
Crude oil - imports:
215,600 bbl/day (2016 est.)
country comparison to the world: 30
Crude oil - proved reserves:
12.73 million bbl (1 January 2017 est.)
country comparison to the world: 90
Refined petroleum products - production:
278,300 bbl/day (2016 est.)
country comparison to the world: 43
Refined petroleum products - consumption:
199,900 bbl/day (2016 est.)
country comparison to the world: 56
Refined petroleum products - exports:
115,700 bbl/day (2016 est.)
country comparison to the world: 41
Refined petroleum products - imports:
98,020 bbl/day (2016 est.)
country comparison to the world: 58
Natural gas - production:
8.5 billion cu m (2015 est.)
country comparison to the world: 45
Natural gas - consumption:
13.61 billion cu m (2015 est.)
country comparison to the world: 49
Natural gas - exports:
2.605 billion cu m (2011 est.)
country comparison to the world: 36
Natural gas - imports:
160 million cu m (2015 est.)
country comparison to the world: 73
Natural gas - proved reserves:
176 billion cu m (1 January 2017 est.)
country comparison to the world: 47
Carbon dioxide emissions from consumption of energy:
62.5 million Mt (2014 est.)
country comparison to the world: 54
Communications
Telephones - fixed lines:
total subscriptions: 3,340,223
subscriptions per 100 inhabitants: 41 (July 2016 est.)
country comparison to the world: 47
Telephones - mobile cellular:
total: 10.57 million
subscriptions per 100 inhabitants: 127 (July 2016 est.)
country comparison to the world: 83
Telephone system:
general assessment: most highly developed system in the Middle East
domestic: good system of coaxial cable and microwave radio relay; all systems are digital; competition among both fixed-line and mobile cellular providers results in good coverage countrywide; Israeli cellular providers upgraded to 4G in 2014
international: country code - 972; submarine cables provide links to Europe, Cyprus, and parts of the Middle East; satellite earth stations - 3 Intelsat (2 Atlantic Ocean and 1 Indian Ocean) (2018)
Broadcast media:
state broadcasting network, operated by the Israel Broadcasting Authority (IBA), broadcasts on 2 channels, one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian, a channel broadcasting Knesset proceedings, and a music channel supervised by a public body; multi-channel satellite and cable TV packages provide access to foreign channels; IBA broadcasts on 8 radio networks with multiple repeaters and Israel Defense Forces Radio broadcasts over multiple stations; about 15 privately owned radio stations; overall more than 100 stations and repeater stations (2008)
Internet country code:
.il
Internet users:
total: 6,521,539
percent of population: 79.8% (July 2016 est.)
country comparison to the world: 65
Transportation
National air transport system:
number of registered air carriers: 6
inventory of registered aircraft operated by air carriers: 60
annual passenger traffic on registered air carriers: 6,064,478
annual freight traffic on registered air carriers: 758,633,996 mt-km (2015)
Civil aircraft registration country code prefix:
4X (2016)
Airports:
47 (2013)
country comparison to the world: 94
Airports - with paved runways:
total: 29
over 3,047 m: 2
2,438 to 3,047 m: 5
1,524 to 2,437 m: 6
914 to 1,523 m: 11
under 914 m: 5 (2017)
Airports - with unpaved runways:
total: 18
1,524 to 2,437 m: 1
914 to 1,523 m: 3
under 914 m: 14 (2013)
Heliports:
3 (2013)
Pipelines:
gas 763 km; oil 442 km; refined products 261 km (2013)
Railways:
total: 1,250 km
standard gauge: 1,250 km 1.435-m gauge (2014)
country comparison to the world: 84
Roadways:
total: 18,566 km
paved: 18,566 km (includes 449 km of expressways) (2011)
country comparison to the world: 115
Merchant marine:
total: 42
by type: container ship 5, general cargo 4, oil tanker 3, other 30 (2017)
country comparison to the world: 119
Ports and terminals:
major seaport(s): Ashdod, Elat (Eilat), Hadera, Haifa
container port(s) (TEUs): Ashdod (1,176,000), Haifa (1,238,000)
Military & Security
Military expenditures:
5.62% of GDP (2017)
5.64% of GDP (2016)
5.6% of GDP (2015)
5.86% of GDP (2014)
5.75% of GDP (2013)
country comparison to the world: 7
Military branches:
Israel Defense Forces (IDF), Israel Naval Force (IN), Israel Air Force (IAF) (2010)
Military service age and obligation:
18 years of age for compulsory (Jews, Druze) military service; 17 years of age for voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 32 months for enlisted men and 24 months for enlisted women (varies based on military occupation), 48 months for officers; pilots commit to 9-year service; reserve obligation to age 41-51 (men), age 24 (women) (2015)
Transnational Issues
Disputes - international:
West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied Syria (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region
Refugees and internally displaced persons:
refugees (country of origin): 27,812 (Eritrea) (2016)
stateless persons: 42 (2016)
Illicit drugs:
increasingly concerned about ecstasy, cocaine, and heroin abuse; drugs arrive in country from Lebanon and, increasingly, from Jordan; money-laundering center
