Israel's Economy: Resilient and Globally Oriented

Today, Israeli economy can be characterized as resilient and globally oriented. It is based heavily on foreign trade, especially in the expanding markets of information technology, biotechnology and aviation. Total industrial exports, exclusive of diamonds and defense products, exceeded $37 billion in 2007, which is more than $5000 per capita. Exports of services bring the total to more than $58 billion.

These excellent economic indicators are due to a national committment to research and development: Israel spends about $1,100 per capita annually on civilian R&D, 20 percent more than the United States and 50 percent more than Organization for Economic Co-operation and Development (OECD) countries. GDP per capita was about $24,000 in 2007, five percent higher than in 2005. Inflation, which in the past crippled Israeli economy, is now nonexistent. Israel's economy is larger than those of all its immediate neighbors combined, and the number of its companies traded on NASDAQ ranks only behind the United States and Canada.