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[[File:Rothschild blvd in winter.jpg|thumb|right|250px|[[Tel Aviv]] is the major economic center of Israel]]
[[File:Rothschild blvd in winter.jpg|thumb|right|250px|[[Tel Aviv]] is the major economic center of Israel]]
'''The economy of [[Israel]]''' is a diversified [[market economy]] with moderate state ownership and a rapidly developing [[Silicon Wadi|high-tech sector]], which is backed by a thriving [[Venture Capital]] industry. Israel possesses a substantial [[service sector]] and the [[Israel diamond industry]] is one of the world's centers for [[diamond cutting]] and polishing. It is also a world leader in [[software]] development and is a major [[Tourism in Israel|tourist destination]]. The major industrial sectors include metal products, electronic and biomedical equipment, processed foods, chemicals, and transport equipment.
'''The economy of [[Israel]]''' is a diversified [[market economy]] with moderate state ownership and a rapidly developing [[Silicon Wadi|high-tech sector]], which is backed by a thriving [[Venture Capital]] industry. Israel possesses a substantial [[service sector]] and the [[Israel diamond industry]] is one of the world's centers for [[diamond cutting]] and polishing. It is also a world leader in [[software]] development and is a major [[Tourism in Israel|tourist destination]]. The major industrial sectors include metal products, electronic and biomedical equipment, processed foods, chemicals, and transport equipment.
Relatively Poor in [[natural resource]]s, Israel depends on imports of [[petroleum]], [[coal]], food, uncut [[diamond]]s and production inputs. The high concentration of high-tech industries in Israel, gave it the nickname "[[Silicon Wadi]]", which is considered second in importance only to its [[Silicon Valley|Californian counterpart]].<ref name="tech">{{Citation| url=http://www.economist.com/business/displaystory.cfm?story_id=10881264 | title=Land of milk and start-ups | work=The Economist | date=2008-03-19 | accessdate=2008-03-22| postscript=.}}</ref>.
Relatively poor in [[natural resource]]s, Israel depends on imports of [[petroleum]], [[coal]], food, uncut [[diamond]]s and production inputs. The high concentration of high-tech industries in Israel, gave it the nickname "[[Silicon Wadi]]", which is considered second in importance only to its [[Silicon Valley|Californian counterpart]].<ref name="tech">{{Citation| url=http://www.economist.com/business/displaystory.cfm?story_id=10881264 | title=Land of milk and start-ups | work=The Economist | date=2008-03-19 | accessdate=2008-03-22| postscript=.}}</ref>.


In September 2010, Israel joined the [[OECD]]<ref name="OECD"/>, which praised Israel's scientific and technological progress and described it as having "produced outstanding outcomes on a world scale."<ref name="news.bbc.co.uk">[http://news.bbc.co.uk/2/hi/8672304.stm OECD members vote unanimously to invite Israel to join ]</ref> Israel has also signed [[free trade agreement]]s with the [[European Union]], the [[United States]], the [[European Free Trade Association]], [[Turkey]], [[Mexico]], [[Canada]], [[Jordan]], [[Egypt]], and on 18 December 2007, became the first non-[[Latin America]]n country to sign a free trade agreement with the [[Mercosur]] trade bloc.<ref>http://www.tamas.gov.il/NR/exeres/A01F7E09-0217-47F9-B04F-5D0DEE3D91FB.htm</ref><ref>http://www.mfa.gov.il/MFA/MFA+events/Around+the+world/Israel+signs+free+trade+agreement+with+MERCOSUR+18 December 2007.htm</ref>
In September 2010, Israel joined the [[OECD]]<ref name="OECD"/>, which praised Israel's scientific and technological progress and described it as having "produced outstanding outcomes on a world scale."<ref name="news.bbc.co.uk">[http://news.bbc.co.uk/2/hi/8672304.stm OECD members vote unanimously to invite Israel to join ]</ref> Israel has also signed [[free trade agreement]]s with the [[European Union]], the [[United States]], the [[European Free Trade Association]], [[Turkey]], [[Mexico]], [[Canada]], [[Jordan]], [[Egypt]], and on 18 December 2007, became the first non-[[Latin America]]n country to sign a free trade agreement with the [[Mercosur]] trade bloc.<ref>http://www.tamas.gov.il/NR/exeres/A01F7E09-0217-47F9-B04F-5D0DEE3D91FB.htm</ref><ref>http://www.mfa.gov.il/MFA/MFA+events/Around+the+world/Israel+signs+free+trade+agreement+with+MERCOSUR+18 December 2007.htm</ref>
Line 43: Line 43:


==History==
==History==
In 1937, there were 86 spinning and weaving factories in Palestine, employing a workforce of 1,500. Capital and technical expertise were supplied by Jewish professionals from Europe. The Ata textile plant in [[Kiryat Ata]], which went on to become an icon of the Israeli textile industry, was established in 1934. The industry underwent rapid development during [[World War II]], when supplies from Europe were cut off and local manufactures were commissioned for army needs. By 1943, the number of factories had grown to 250, with a workforce of 5,630, and output increased tenfold. After statehood, priority was given to establishing industries in areas slated for development, among them [[Lachish]], [[Ashkelon]], the [[Negev]] and [[Galilee]]. The expansion of Israel's textile industry was also a consequence of the development of cotton growing as a profitable agricultural branch. By the late 1960s, textiles were one of the largest industrial branches in Israel, second only to the foodstuff industry. Textiles constituted about 12% of industrial exports, become the second largest export branch after diamonds. In the 1990s, cheap East Asian labor decreased the profitability of the sector. Much of the work was subcontracted to 400 Israeli Arab sewing shops. As these closed down, Israeli firms, among them Delta, Polgat, Argeman and Kitan, began doing their sewing work in Jordan and Egypt. In the early 2000s, Israeli companies had 30 plants in Jordan. Israeli exports reached $370 million a year, supplying such retailers and designers as [[Marks & Spencer]], [[The Gap]], ]]Victoria's Secret]], [[Wal-Mart]], [[Sears]], [[Ralph Lauren], [[Calvin Klein]], and [[Donna Karan]].
⚫
Israel's strong commitment to economic development and its talented work force led to economic growth rates during the nation's first two decades that frequently exceeded 10% annually. The years after the 1973 [[Yom Kippur War]] were a lost decade economically, as growth stalled, [[inflation]] soared and government expenditures rose significantly. Also worthy of mention is the 1983 [[Bank stock crisis (Israel 1983)|Bank stock crisis]].

⚫
In its first two decades of existence, Israel's strong commitment to development led to economic growth rates that exceeded 10% annually. The years after the 1973 [[Yom Kippur War]] were a lost decade economically, as growth stalled, [[inflation]] soared and government expenditures rose significantly. Also worthy of mention is the 1983 [[Bank stock crisis (Israel 1983)|Bank stock crisis]].


By 1984, the economic situation became almost catastrophic with inflation reaching an annual rate close to 450% and projected to reach over 1000% by the end of the following year. However, the successful [[Economic Stabilization Plan (Israel 1985)|economic stabilization plan implemented in 1985]] <ref>[http://www.knesset.gov.il/review/ReviewPage2.aspx?kns=11&lng=3 Eleventh Knesset]</ref> and the subsequent introduction of market-oriented structural reforms <ref>[http://www.nber.org/papers/w1822.pdf Generating a Sharp Disinflation: Israel 1985] Michael Bruno, [[National Bureau of Economic Research]]</ref><ref>[http://www.jewishvirtuallibrary.org/jsource/isdf/text/Melnick_Mealem1.html Israel's Economy: 1986-2008], Rafi Melnick and Yosef Mealem</ref> reinvigorated the economy and paved the way for its rapid growth in the 1990s and became a model for other countries facing similar economic crises.<ref>See [http://www.jstor.org/pss/1805463 Stopping High Inflation - The Israeli Stabilization Program, 1985-86], [[Stanley Fischer]], [[The American Economic Review]], Vol. 77, No. 2</ref>
By 1984, the economic situation became almost catastrophic with inflation reaching an annual rate close to 450% and projected to reach over 1000% by the end of the following year. However, the successful [[Economic Stabilization Plan (Israel 1985)|economic stabilization plan implemented in 1985]] <ref>[http://www.knesset.gov.il/review/ReviewPage2.aspx?kns=11&lng=3 Eleventh Knesset]</ref> and the subsequent introduction of market-oriented structural reforms <ref>[http://www.nber.org/papers/w1822.pdf Generating a Sharp Disinflation: Israel 1985] Michael Bruno, [[National Bureau of Economic Research]]</ref><ref>[http://www.jewishvirtuallibrary.org/jsource/isdf/text/Melnick_Mealem1.html Israel's Economy: 1986-2008], Rafi Melnick and Yosef Mealem</ref> reinvigorated the economy and paved the way for its rapid growth in the 1990s and became a model for other countries facing similar economic crises.<ref>See [http://www.jstor.org/pss/1805463 Stopping High Inflation - The Israeli Stabilization Program, 1985-86], [[Stanley Fischer]], [[The American Economic Review]], Vol. 77, No. 2</ref>

Revision as of 08:55, 28 October 2010

Economy of Israel
File:1 New Israeli Sheqel (1994-1995).jpg
1 New Israeli Shekel Coin
CurrencyNew Israeli Shekel (NIS)
Calendar Year
Trade organisations
BIS, CLS Bank, EBRD, IADB, ICC, ISO, ITUC, OECD, UN economic bodies, WCO, WFTU, WTO.
Statistics
GDP$206.9 billion (2009 est.)
GDP growth
4.2% (2008 est.), 0.5% (2009 est.)[1]
GDP per capita
$28,900 (2008 est.)
GDP by sector
agriculture (2.7%), industry (31.7%), services (65.6%) (2008 est.)
3.9% (2009 est.)
Population below poverty line
23.6% (2007)
39.2 (2008)
Labour force
3.01 million (2008 est.)
Labour force by occupation
Agriculture (2%), Industry (16%), Services (82%) (30 September 2008)
Unemployment6.2% (July 2010) [4]
Main industries
high-technology projects (including aviation, communications, computer-aided design and manufacture, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metal products, chemical products, plastics, diamond cutting, textiles and footwear
External
Exports$44.35 billion f.o.b. (2009 est.)
Export goods
machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel, military equipment, food.
Main export partners
US 32.5%, Belgium 7.5%, Hong Kong 6.7% (2008)
Imports$47.4 billion f.o.b. (2009 est.)
Import goods
raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
Main import partners
United States 12.3%, Belgium 6.5%, Germany 6.0%, China 6.5%, Switzerland 6.1%(2008)
Public finances
78% of GDP (2009 est.)
Revenues$45 billion (2008 est.)
Expenses$58.6 billion (2009 est.)
All values, unless otherwise stated, are in US dollars.
File:Rothschild blvd in winter.jpg
Tel Aviv is the major economic center of Israel

The economy of Israel is a diversified market economy with moderate state ownership and a rapidly developing high-tech sector, which is backed by a thriving Venture Capital industry. Israel possesses a substantial service sector and the Israel diamond industry is one of the world's centers for diamond cutting and polishing. It is also a world leader in software development and is a major tourist destination. The major industrial sectors include metal products, electronic and biomedical equipment, processed foods, chemicals, and transport equipment. Relatively poor in natural resources, Israel depends on imports of petroleum, coal, food, uncut diamonds and production inputs. The high concentration of high-tech industries in Israel, gave it the nickname "Silicon Wadi", which is considered second in importance only to its Californian counterpart.[2].

In September 2010, Israel joined the OECD[3], which praised Israel's scientific and technological progress and described it as having "produced outstanding outcomes on a world scale."[4] Israel has also signed free trade agreements with the European Union, the United States, the European Free Trade Association, Turkey, Mexico, Canada, Jordan, Egypt, and on 18 December 2007, became the first non-Latin American country to sign a free trade agreement with the Mercosur trade bloc.[5][6]

The country's GDP (Purchasing power parity) in 2006 reached $195 billion according to the International Monetary Fund or $179 billion according to the World Bank (see List of countries by GDP (PPP)). GDP per capita has been $31,767 according to the International Monetary Fund in 2007 or $26,200 in 2006 according to the CIA World Factbook. The economy grew by 8% in the last quarter of 2006, faster than any of its Western counterparts.[7]

American billionaires and business tycoons including Bill Gates, Warren Buffett, and Donald Trump have each praised Israel’s economic environment,[8] and the country was the destination for Berkshire Hathaway's first investment outside of the USA when it purchased ISCAR Metalworking, and the first research and development centers outside the USA for companies including Intel and Microsoft. Israel also enjoys the availability of $3.148 billion in U.S. loan guarantees, whose conditions are negotiated each year at the U.S.-Israel Joint Economic Development Group (JEDG).[9]

History

In 1937, there were 86 spinning and weaving factories in Palestine, employing a workforce of 1,500. Capital and technical expertise were supplied by Jewish professionals from Europe. The Ata textile plant in Kiryat Ata, which went on to become an icon of the Israeli textile industry, was established in 1934. The industry underwent rapid development during World War II, when supplies from Europe were cut off and local manufactures were commissioned for army needs. By 1943, the number of factories had grown to 250, with a workforce of 5,630, and output increased tenfold. After statehood, priority was given to establishing industries in areas slated for development, among them Lachish, Ashkelon, the Negev and Galilee. The expansion of Israel's textile industry was also a consequence of the development of cotton growing as a profitable agricultural branch. By the late 1960s, textiles were one of the largest industrial branches in Israel, second only to the foodstuff industry. Textiles constituted about 12% of industrial exports, become the second largest export branch after diamonds. In the 1990s, cheap East Asian labor decreased the profitability of the sector. Much of the work was subcontracted to 400 Israeli Arab sewing shops. As these closed down, Israeli firms, among them Delta, Polgat, Argeman and Kitan, began doing their sewing work in Jordan and Egypt. In the early 2000s, Israeli companies had 30 plants in Jordan. Israeli exports reached $370 million a year, supplying such retailers and designers as Marks & Spencer, The Gap, ]]Victoria's Secret]], Wal-Mart, Sears, [[Ralph Lauren], Calvin Klein, and Donna Karan.

In its first two decades of existence, Israel's strong commitment to development led to economic growth rates that exceeded 10% annually. The years after the 1973 Yom Kippur War were a lost decade economically, as growth stalled, inflation soared and government expenditures rose significantly. Also worthy of mention is the 1983 Bank stock crisis.

By 1984, the economic situation became almost catastrophic with inflation reaching an annual rate close to 450% and projected to reach over 1000% by the end of the following year. However, the successful economic stabilization plan implemented in 1985 [10] and the subsequent introduction of market-oriented structural reforms [11][12] reinvigorated the economy and paved the way for its rapid growth in the 1990s and became a model for other countries facing similar economic crises.[13]

Two developments have helped to transform Israel's economy since the beginning of the 1990s. The first is waves of Jewish immigration, predominantly from the countries of the former USSR, that has brought over one million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 16% of Israel's 7.5 million population. The second development benefiting the Israeli economy is the peace process begun at the Madrid conference of October 1991, which led to the signing of accords led to a peace treaty between Israel and Jordan (1994).

Despite the Second Intifada, which cost Israel billions of dollars in economic terms[citation needed], Israel managed to open up new markets to Israeli exporters farther afield, such as in the rapidly growing countries of East Asia.

In the past few years there has been an unprecedented inflow of foreign investment in Israel, as companies that formerly shunned the Israeli market now see its potential contribution to their global strategies. In 2006, foreign investment in Israel totaled $13 billion, according to the Manufacturers Association of Israel.[7] The Financial Times said that 'bombs drop, yet Israel's economy grows'.[14] Moreover, while Israel's total gross external debt is US$84 billion, or approximately 44% of GDP, since 2001 it has become a net lender nation in terms of net external debt (the total value of assets vs. liabilities in debt instruments owed abroad), which as of June 2009 stood at a significant surplus of US$54 billion.[15][16]

The Israeli economy withstood the late-2000s recession, registering positive GDP growth in 2009 and ending the decade with an unemployment rate lower than that of many western countries.[1] There are several reasons behind this economic resilience, for example, the fact, as stated above, that the country is a net lender rather than a borrower nation and the government and the Bank of Israel's generally conservative macro-economic policies. Two policies in particular can be cited, one is the refusal of the government to succumb to pressure by the banks to appropriate large sums of public money to aid them early in the crisis, thus limiting their risky behavior. The second is the implementation of the recommendations of the Bach'ar commission in the early to mid-2000s which recommended decoupling the banks' depository and investment banking activities, contrary to the then-opposite trend, particularly in the United States, of easing such restrictions which had the effect of encouraging more risk-taking in the financial systems of those countries.[17]

OECD membership

In May 2007, Israel was invited to open accession discussions with the OECD.[18] In May 2010, the OECD voted unanimously to invite Israel to join, despite Palestinian objections.[4] It became a full member on 7 September 2010.[3].[19]

Economy Rankings

As of 2010, Israel ranks 17th among of the world's most economically developed nations, according to IMD's World Competitiveness Yearbook rankings. The Israeli economy was ranked as the world's most durable economy in the face of crises, and was also ranked first in the rate research and development center investments.[20]

The Bank of Israel was ranked first among central banks for its efficient functioning, up from the 8th place in 2009. Israel was ranked first also in its supply of skilled manpower.[20]

Israeli companies, particularly in the high-tech area, have enjoyed considerable success raising money on Wall Street and other world financial markets; As of 2010 Israel ranked second among foreign countries in the number of its companies listed on U.S. stock exchanges.[21]

Macro-economic trend

This is a chart of trend of gross domestic product of Israel at market prices estimated by the International Monetary Fund and EconStats with figures in millions of Israeli Shekels. Average wages in 2007 hover around $109–133 per day.[22]

Year Gross Domestic Product Per Capita Income
(as % of USA)
1985 28,437 38.37
1990 106,475 53.15
1995 269,718 64.29
2000 470,732 58.45
2005 553,970 47.45
2007 624,2981

External trade

Israeli exports in 2006

For 2006, Israeli exports grew by 11% to just over $29 billion; the hi-tech sector accounted for $14 billion, a 20% increase from the previous year.[7]

The United States is Israel's largest trading partner; two-way trade totalled some $12.6 billion in 1997. The principal U.S. exports to Israel include computers, integrated circuits, aircraft parts and other defense equipment, wheat, and automobiles. Israel's chief exports to the U.S. include cut diamonds, jewelry, integrated circuits, printing machinery, and telecommunications equipment. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following ten years. An agricultural trade accord was signed in November 1996, which addressed the remaining goods not covered in the FTA. Some non-tariff barriers and tariffs on goods remain, however. Israel also has trade and cooperation agreements in place with the European Union and Canada, and is seeking to conclude such agreements with a number of other countries, including Turkey, Jordan and several countries in Eastern Europe.

Until the last decade, Israel's trade with the Arab world was minimal due to the Arab League boycott. Beginning in 1945, Arab nations not only refused to have direct trade with Israel (the primary boycott), but they also refused to do business with any corporation that operated in Israel, or any corporation that did business with a corporation that did business with Israel (the secondary and tertiary boycotts).

Israel is one of the world's major exporters of military equipment, accounting for 10% of the world total in 2007.

Sectors

Agriculture

Lemon orchard in the Galilee
Further information: Agriculture in Israel

2.8% of the country's GDP is derived from agriculture. Of a total labor force of 2.7 million, 2.6% are employed in agricultural production while 6.3% in services for agriculture.[23] While Israel imports substantial quantities of grain (approximately 80% of local consumption), it is largely self-sufficient in other agricultural products and food stuffs. For centuries, farmers in Israel have grown varieties of citrus fruits such as grapefruit, oranges and lemons. Citrus fruits are still Israel's major agricultural export. In addition, Israel is one of the world's leading greenhouse food exporting countries.

Financial sector

Azorim High-Tech park in Petah-Tikva, Israel
Further information: Banking in Israel and Tel Aviv Stock Exchange

Israel’s venture capital industry has rapidly developed from the early 1990s, and has about 70 active venture capital funds, of which 14 international VCs with Israeli offices. Israel's thriving venture capital and Business incubator industry played an important role in the booming high-tech sector.[24] In 2008, venture capital investment in Israel, rose 19 percent to $1.9 billion.[25]

Between 1991 and 2000, Israel’s annual venture-capital outlays, nearly all private, rose nearly 60-fold, from $58 million to $3.3 billion; companies launched by Israeli venture funds rose from 100 to 800; and Israel’s information-technology revenues rose from $1.6 billion to $12.5 billion. By 1999, Israel ranked second only to the United States in invested private-equity capital as a share of GDP. And it led the world in the share of its growth attributable to high-tech ventures: 70 percent." [26]

Technology sector

Weizmann Institute of Science, Rehovot
Further information: Science and technology in Israel and Silicon Wadi

Science and technology in Israel is one of the country's most developed sectors. The percentage of Israelis engaged in scientific and technological inquiry, and the amount spent on research and development (R&D) in relation to gross domestic product (GDP), is amongst the highest in the world.[27] Israel ranks fourth in the world in scientific activity as measured by the number of scientific publications per million citizens. Israel's percentage of the total number of scientific articles published worldwide is almost 10 times higher than its percentage of the world's population.[28]

Israeli scientists have contributed to the advancement of agriculture, computer sciences, electronics, genetics, medicine, optics, solar energy and various fields of engineering. Israel is home to major players in the high-tech industry and has one of the world's most technologically-literate populations.[29] In 1998, Tel Aviv was named by Newsweek as one of the ten most technologically influential cities in the world.[30]

In 1998, Tel Aviv was named by Newsweek as one of the ten most technologically influential cities in the world.[31]

Energy

As of 2009, Israel relies on external imports for meeting most of its energy needs, spending an amount equivalent to over 5% of its GDP per year on imports of energy products.[32] The transportation sector relies mainly on gasoline and diesel fuel while the majority of electricity production is generated using imported coal. The country possesses negligible reserves of crude oil but does have substantial domestic natural gas resources which were discovered starting in the year 2000. A 33 billion cubic meters (BCM) natural gas field is located offshore Ashkelon, however, as of 2009 it is approximately two-thirds exhausted. In early 2009, a significant gas find with proven reserves of 184 BCM (247 BCM probable) was located in deep water approximately 90 km west of Haifa.[33][34][35] A smaller 15 BCM field situated nearer the coastline was also located in 2009. In the years 2009-2030, the Israeli market is expected to consume around 250 BCM of natural gas and proven domestic supplies can account for approximately 85% of this amount. The remainder is expected to be purchased by pipeline from nearby Egypt and in the form of LNG from other countries. Nevertheless, the large gas find near Haifa has significantly raised the prospect of finding additional domestic resources of natural gas along the Eastern Mediterranean shore, prompting increased exploration off Israel's coastline. As a result, preliminary findings from 3D seismic surveys undertaken in 2010 have indicated a potential 453 BCM natural gas prospect in a large underwater geological formation nearby the large gas field already discovered in 2009.[33][35] For comparison purposes, the United Kingdom's total proven gas reserves as of 2009 are 343 BCM while Germany's consist of 176 BCM.

Field [36] Discovered Production Estimated size
Mari-B 2000 2004 1 trillion cubic feet
Tamar 2008 Not in production 8.4 trillion cubic feet
Dalit 2009 Not in production 700 billion cubic feet

Electricity

As of 2010, the Israel Electric Corporation (IEC), a state-owned enterprise, produces nearly all of the electricity generated in Israel. The IEC has an aggregate installed generating capacity of 11,690 MW, virtually all of it produced from hydrocarbon fuels. In 2009 the Company sold 48,947 GWh of electricity. The IEC is in the midst of adding several thousand megawatts of generating capacity due to increased demand, though a debate is currently raging with respect to how much should be generated from new coal-fired versus gas-fired plants, a determination complicated by the fact that some of the company's capital investment decisions predate the recent discoveries of significant reserves of natural gas offshore. In addition, in order to encourage competition in the electricity market, the government of Israel is currently (mid-2010) considering proposals from four private companies to generate up to 3,640 MW of electricity in 11 new sites, most of which would be gas-fired combined cycle power stations.

The Negev Desert is home to the Israeli solar research industry, in particular the National Solar Energy Center and the Arava Valley, which is the sunniest area of Israel.
Fuel Sources of Total Generated Electricity by the IEC in 2009
Coal Fuel oil Natural gas Diesel
64.7% 1.2% 32.6% 1.5%

Solar Energy

Main article: Solar power in Israel

Solar power in Israel and the Israeli solar energy industry has a history that dates to the founding of the country. In the 1950s, Levi Yissar developed a solar water heater to help assuage an energy shortage in the new country.[37] By 1967 around one in twenty households heated their water with the sun and 50,000 solar heaters had been sold.[37] With the 1970s oil crisis, Harry Zvi Tabor, the father of Israel's solar industry, developed the prototype solar water heater that is now used in over 90% of Israeli homes.[38] Israeli engineers are on the cutting edge of solar energy technology[39] and its solar companies work on projects around the world.[40]

Industrial sector

Further information: Companies of Israel by industry

Diamond industry

Further information: Diamond industry in Israel

Israel is one of the world's three major centers for polished diamonds, alongside Belgium and India. Israel's net polished diamond exports in the first quarter of 2010 jumped 55 percent from 2009, to $1.45 billion, after a 37 percent drop in all of 2009 to $3.92 billion. [41]

Telecommunications

Further information: Telecommunications in Israel

Tourism

Ayalon Highway near Tel Aviv
Further information: Tourism in Israel

Tourism is one of Israel's major sources of income, with 2.7 million foreign tourists in 2009.[42] Israel offers a plethora of historical and religious sites, beach resorts, archaeological tourism, heritage tourism and ecotourism. Israel has the highest number of museums per capita in the world.[43] The most popular paid site is Masada.[44]

Transportation

Further information: Transport in Israel

Income

Comparing incomes of a median household in Israel vs. other countries.

"OECD, PPP conversion rates". Retrieved 2006-01-20. "OECD, PPP conversion rates in Israel" (PDF). Retrieved 2007-01-25.

Template:International median household income

Annual data 2006 Historical averages (%) 2002-06
Population (m) - 7.1 Population growth - 1.8
GDP per head (US$; purchasing power parity) - 27,588 Real GDP growth - 3.1
Percent of unemployed persons (May 2009) - 8.4% Inflation - 1.9
Exchange rate (av) NIS:US$ - 3.8 Current-account balance (% of GDP) - 1.6

According to the data published by Ian Fursman 60% of the poor households in Israel are of the Haredi Jews and the Israeli Arabs in which there is a high birth rate and a low participation rate in the labor force. Both Groups together represent 25 - 28% of the Israeli population.

See also

References

  1. ^ a b Moti Bassok (2010-01-02). "GDP, jobs figures end 2009 on a high". Haaretz. Retrieved 2010-01-02.
  2. ^ "Land of milk and start-ups", The Economist, 2008-03-19, retrieved 2008-03-22.
  3. ^ a b Israel's accession to the OECD.
  4. ^ a b OECD members vote unanimously to invite Israel to join
  5. ^ http://www.tamas.gov.il/NR/exeres/A01F7E09-0217-47F9-B04F-5D0DEE3D91FB.htm
  6. ^ http://www.mfa.gov.il/MFA/MFA+events/Around+the+world/Israel+signs+free+trade+agreement+with+MERCOSUR+18 December 2007.htm
  7. ^ a b c "Israeli Growth", Dateline World Jewry, September, 2007
  8. ^ "AIPAC: Today's Briefing". 2006-12-12. Retrieved 2006-12-12. [dead link]
  9. ^ Tova Cohen (23 July 2009). "Israel doesn't see U.S. limiting loan guarantees". Reuters. Retrieved 20 September 2009.
  10. ^ Eleventh Knesset
  11. ^ Generating a Sharp Disinflation: Israel 1985 Michael Bruno, National Bureau of Economic Research
  12. ^ Israel's Economy: 1986-2008, Rafi Melnick and Yosef Mealem
  13. ^ See Stopping High Inflation - The Israeli Stabilization Program, 1985-86, Stanley Fischer, The American Economic Review, Vol. 77, No. 2
  14. ^ http://www.ft.com/cms/s/bd1cb7ba-fcb1-11db-9971-000b5df10621,dwp_uuid=f98b03ba-4d11-11da-ba44-0000779e2340.html
  15. ^ "Israel's International Investment Position (IIP), June 2009". Bank of Israel.
  16. ^ "The world owes the Israeli economy $16.9 billion" (PDF). I.B.I.
  17. ^ Guy Rolnik (2009-12-31). "How another Giant Crisis was Wasted". TheMarker (in Hebrew). Retrieved 2010-01-02.
  18. ^ "Israel invited to join the OECD". Retrieved 2007-05-21.
  19. ^ Current list of OECD members.
  20. ^ a b 'Israel's economy most durable in face of crises', Ynet 05.20.2010
  21. ^ U.S. listed Israeli companies
  22. ^ IMF Report
  23. ^ Agriculture in Israel - Facts and Figures 2008 - Israeli ministry of Agriculture Presentation
  24. ^ [1]
  25. ^ [2]
  26. ^ Gilder, George, "Silicon Israel — How market capitalism saved the Jewish state", City Journal -Summer 2009, 19 (3), retrieved 2009-11-11
  27. ^ Ministry of Industry, Trade & Labor - Foreign Trade Administration
  28. ^ Israel ranks 4th for the number of scientific papers per person, Haaretz
  29. ^ BBC country profiles
  30. ^ Tel Aviv Hailed as One of the World's Top Hi-tech Centers. The Israeli Economy, Achievements and Potential, Ministry of Finance of Israel (MOF) November 1998
  31. ^ Tel Aviv Hailed as One of the World's Top Hi-tech Centers. The Israeli Economy Achievements and Potential. Ministry of Finance of Israel (MOF) November 1998.
  32. ^ Asa-El, Amotz (2009-01-27). "Gas discovery tempers Israeli recession blues". MarketWatch. Retrieved 2009-02-01.
  33. ^ a b "Delek Group Subsidiaries Announce Preliminary Results of 3D Seismic Survey & Updates on Tamar & Mari-B Fields" (Press release). Delek Group. 2010-06-03. Retrieved 2010-06-03.
  34. ^ "Tamar offshore field promises even more gas than expected". Reuters. 2010-08-12. Retrieved 2009-08-12.
  35. ^ a b Scheer, Steven (2010-06-03). "Noble increases Tamar gas reserve estimate 15 pct". Reuters. Retrieved 2010-06-03.
  36. ^ http://www.energytribune.com/articles.cfm?aid=1875
  37. ^ a b Petrotyranny by John C. Bacher, David Suzuki, published by Dundurn Press Ltd., 2000; reference is at Page 70 [3]
  38. ^ At the Zenith of Solar Energy, Neal Sandler,BusinessWeek, March 26, 2008.
  39. ^ Israel Pushes Solar Energy Technology, Linda Gradstein, National Public Radio, October 22, 2007.
  40. ^ Looking to the sun, Tom Parry, Canadian Broadcasting Corporation, August 15, 2007.
  41. ^ Diamond talks in Israel to focus on Zimbabwe
  42. ^ "Summer tourism numbers heat up." Jerusalem Post. August 10, 2010. Retrieved on August 10, 2010.
  43. ^ Interesting Facts about Israel
  44. ^ "Masada tourists' favorite spot in Israel". Ynetnews. Retrieved 2009-04-08.

Bibliography

  • Ben-Porath, Yoram ed. The Israeli Economy: Maturing through Crises. Cambridge, Massachusetts: Harvard University Press, 1986.
  • Chill, Dan. The Arab Boycott of Israel: Economic Aggression and World Reaction. New York: Praeger Publishers, 1976.
  • Kanovsky, Eliyahu. The Economy of the Israeli Kibbutz. Cambridge, Massachusetts: Harvard University Press, 1966.
  • Klein, Michael. A Gemara of the Israel Economy. Cambridge, Massachusetts: National Bureau of Economic Research, 2005.
  • Michaely, Michael. Foreign Trade Regimes and Economic Development: Israel. New York: National Bureau of Economic Research, 1975.
  • Ram, Uri (2008). The Globalization of Israel: McWorld in Tel Aviv, Jihad in Jerusalem. New York: Routledge. ISBN 0415953049.
  • Seliktar, Ofira. “The Changing Political Economy of Israel: From Agricultural Pioneers to the “Silicon Valley” of the Middle East.” In Israel’s First Fifty Years edited by Robert Freedman 197-218. Gainesville, Florida: University of Florida Press, 2000.
  • Senor, Dan and Singer, Saul, Start-up Nation: The Story of Israel's Economic Miracle, Hachette Book Group, New York, (2009) ISBN 044654146X
  • Rubner, Alex. The Economy of Israel: A Critical Account of the First Ten Years. New York: Frederick A. Praeger Publishers, 1960.
  • Aharoni, Sara and Meir (2005). Industry & Economy in Israel. Israelbooks.com

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