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An update from Evaneos

Israel's economic situation

By coming on holiday to Israel you're going to discover a very rich country.

A healthy economy

During your trip to Israel you will realise the extent to which the country finds itself in a healthy economic situation. Several indicators are looking good, and the figures are there to prove it. For almost 30 years Israel has experienced a growth of 10% per year. It has slowed down a little in the last years but still posts a good 6% which western countries affected by the global economic crisis can only dream of. Other positive points: the unemployment rate is at around 5% and inflation, which reached record rates of almost 450%, has been reduced and is now maintained at around 2%.

All of these excellent results depend directly on some essential sectors. A large number of intellectuals, combined with high immigration, have allowed a rapid increase of the GDP. You must also bear in mind the sizeable financial help from Americans and Jewish people living abroad. Recently several universities and business have been established in Israel. Large military aids are also given by the United States. They add up to millions and are essential for a country like Israel which dedicates up to 20% of its budget and almost 6% of its GDP to military expenses. Faced with all of these good results, it's necessary to nuance the situation by highlighting the deep inequalities that mark the country. So whilst 12 families alone share more than 30% of the whole economy, 20% of the population lives on the threshold of poverty.

In Israel

The different sectors

With a number of visitors ranging from 3 to 4 million depending on the year tourism is counted amongst the most important economic sectors in Israel.

The production of diamonds also adds massively to the GDP.

Thanks to its aeronautical and munitions industries, Israel has become one of the biggest global exporters of military material.

The country also holds its own well in the pharmaceutical, electronic, telecommunications, chemical, petrochemical and food processing industries.

David Debrincat
459 contributions
Updated 20 November 2015
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