Israel has created healthy economic conditions over thepast ten years because of technological advancement and high investment in researchand development. Though it has different cultures and political instability, theIsraeli economy has still flourished and persisted as an OECD high-income countryand boost their economic growth. The country also remained unhurt andpositively overcame the global financial crisis in 2009 with its economystrongly integrated with the international economy. Economic Statistics GDP $318.74 billion (2016) GDP Growth Rate (annually) 3% Inflation Rate (annually) 0.
3% Imports of goods and services 28.2% of GDP Exports of goods and services 30.3% of GDP Unemployment Rate 4.
3% Population below poverty line 22% ( $7.30 per person per day ) Labour force by occupation Agriculture: 1.1%, Industry: 17.6%, Services: 81.3% Trade Organizations BIS, EBRD, ICC, IADB, ISO,ITUC, CLS, OECD, UN Economic Bodies, WCO, WTO, WFTU. Taxes Corporate tax rate: 25% Sales tax rate: 17% By looking at the above table we can see that Israel’s GDP is$318.
74 billion in 2016. The GDP value of Israel is equivalent around 0.39% ofthe world economy. Their annually GDP growth rate is 3%.
But Israel is already inthe position of very high developed country in the world so their growth rateis quite law. Amongst allthe 187 nations of the UN’s Human Development Index, Israel’s rank is 19thin category of “Very Highly Developed Country” in 2016. Their inflation rate isonly 0.3% annually. Israel has been ranked as 33rd freest economy.
Their Importsof goods and services consist of 28.2% of the GDP while their Exports of goodsand services consist of 30.3% of GDP. Israel has been part of many tradeorganizations like OECD, WTO, etc. The strength of the Israeli economy wasformally recognized when Israel became a member of OEDC (Organization forEconomic Co-operation and Development) in May 2010. Israel is the only countrywho has free trade agreements with both the European Union and NAFTA (UnitedStates, Canada and Mexico).
Its unemployment rate is only 4.3% and only 22% of their populationis below the poverty line which means they are not able to earn $7.30 per day. Eventheir occupational structure is highly service oriented, only 1% of the labourforce is engaged in agriculture sector and 17.
6% is in industrial sector whileabout 81% of the labour force is worked in service sectors. So these are thereasons behind the high development of Israel. Ø EXTERNAL TRADE · Israel Imports:Israel has poor natural recourses, so that it importsthe petroleum, coal, food, uncut diamonds, other production inputs, andmilitary equipment.
The main imports partners are US, China, Switzerland,Germany and Belgium.· Israel Exports: Israel’s major exports are machinery and equipment, software,agricultural products, cut diamonds, chemicals, textiles and apparel. Israel’sexports, around half, manufactured goods involve advanced technology systemsbut Israel’s traditional mid-tech and low-tech industries are remaining strong.Main export partners are United States, Hong Kong, U.K, China, Belgium, Indiaand Turkey.
Being free and open trade helped Israel’s economy toboost up. They also improved the management of government spending, tradefreedom, labour freedom and fiscal freedom. It will help Israel to removepoverty, enhance economic prosperity, capitalize more trading opportunities anddevelop the societal as well as democratic progress.