Israel

Israel Economy

Israel's economy in numbers:

Nominal GDP of USD 525 billion in 2022.

GDP per capita of USD 54,331 compared to the global average of USD 10,589.

Average real GDP growth of 4% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2020, services accounted for 80% of overall GDP, manufacturing 11%, other industrial activity 8%, and agriculture 1%. Looking at GDP by expenditure, private consumption accounted for 51% of GDP in 2021, government consumption 22%, fixed investment 23%, and net exports 4%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 90% of total merchandise exports, mineral fuels 2%, food 4%, ores and metals 2% and agricultural raw materials 1%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 76% of total merchandise imports, mineral fuels 10%, food 9%, ores and metals 2% and agricultural raw materials 1%, with other goods accounting for 2% of the total. Total exports were worth USD 80 billion in 2022, while total imports were USD 106 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 4.0% in the decade to 2022. To read more about GDP growth in Israel, go to our dedicated page.

Fiscal policy:

Israel's fiscal deficit averaged 3.4% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 4.9% in the decade to 2022. For more information on Israel's unemployment click here.

Inflation:

Inflation averaged 0.9% in the decade to 2022. Go to our Israel inflation page for extra insight.

Monetary Policy:

Israel's monetary policy rate ended 2022 at 3.25%, up from 1.75% a decade earlier. See our Israel monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the shekel strengthened by 5.7% vs the U.S. dollar. For more info on the shekel, click here.
After Q1’s 14.4% expansion, the economy likely lost steam in Q2 and remained smaller than pre-war levels. The ongoing fighting with Hamas and Hezbollah continued to weigh on activity by restricting labor supply, displacing citizens and hampering both tourism and investment. Looking at available data, economic activity declined slightly month on month in April before a soft rebound in May, weighed on in both periods by weak exports and credit card purchases. In addition, tourist arrivals were down 69% year on year in June, and goods exports fell at a double-digit rate during the same month. That said, the tech industry was a bright spot: Recent data shows that venture capital funding was roughly USD 3 billion in Q2, which was the highest since 2022.
Projections out to 2033.

48 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 19 expert analysts.

Want to get insight on the economic outlook for Israel in the coming years? FocusEconomics collects projections out to 2033 on 48 economic indicators for Israel from a panel of 19 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Israel economy. To download a sample report on the Israel's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

Israel Economic Data

2019 2020 2021 2022 2023
Population (million) 9.1 9.2 9.4 9.6 9.8
GDP (USD bn) 400 412 490 525 507
GDP per capita (USD) 44,169 44,733 52,276 54,963 51,985
GDP (ILS bn) 1,425 1,417 1,582 1,764 1,870
Economic Growth (Nominal GDP, ann. var. %) 5.8 -0.5 11.6 11.5 6.0
Economic Growth (GDP, ann. var. %) 3.8 -1.4 9.3 6.4 1.8
Domestic Demand (ann. var. %) 4.1 -3.1 11.1 7.5 -0.2
Private Consumption (ann. var. %) 4.0 -7.4 11.4 7.5 -0.7
Government Consumption (ann. var. %) 2.9 2.7 5.2 0.0 7.9
Fixed Investment (ann. var. %) 3.7 -3.1 13.5 10.4 -1.6
Exports (G&S, ann. var. %) 2.9 -2.5 14.8 8.5 -0.6
Imports (G&S, ann. var. %) 3.8 -8.0 21.2 12.1 -6.6
Industrial Production (ann. var. %) 2.9 6.3 5.9 14.9 1.3
Unemployment (% of active population, eop) 3.5 4.8 4.0 4.1 3.2
Unemployment (% of active population, aop) 3.8 4.3 5.0 3.8 3.5
Fiscal Balance (% of GDP) -3.7 -11.3 -4.3 0.6 -4.1
Public Debt (% of GDP) 58.9 71.0 67.5 60.0 60.7
Money (ann. var. of M2 %) 4.4 17.6 19.9 12.7 -5.5
Inflation (CPI, ann. var. %, eop) 0.6 -0.7 2.8 5.3 3.0
Inflation (CPI, ann. var. %, aop) 0.8 -0.6 1.5 4.4 4.2
Inflation (WPI, ann. var. %, eop) -1.2 -4.3 11.0 9.0 0.3
BOI Interest Rate (%, eop) 0.25 0.10 0.10 3.25 4.75
10-Year Bond Yield (%, eop) 0.96 0.77 1.28 3.58 3.95
Exchange Rate (ILS per USD, eop) 3.45 3.21 3.11 3.53 3.60
Exchange Rate (ILS per USD, aop) 3.56 3.44 3.23 3.36 3.69
Current Account Balance (USD bn) 13.6 20.0 19.4 20.6 24.9
Current Account Balance (% of GDP) 3.4 4.9 4.0 3.9 4.9
Merchandise Trade Balance (USD bn) -15.3 -11.4 -21.7 -26.1 -20.0
Merchandise Exports (USD bn) 60.4 59.1 69.8 79.9 73.4
Merchandise Imports (USD bn) 75.7 70.5 91.4 106.0 93.3
Merchandise Exports (ann. var. %) 0.3 -2.1 18.0 14.5 -8.2
Merchandise Imports (ann. var. %) -1.6 -6.8 29.6 16.0 -11.9
Foreign Direct Investment (USD bn) 17.4 21.0 19.0 23.0 16.4
International Reserves (USD bn) 126 173 213 194 205
International Reserves (months of imports) 20.0 29.5 28.0 22.0 26.3
External Debt (USD bn) 103.2 129.9 160.3 155.9 144.8
External Debt (% of GDP) 25.8 31.5 32.7 29.7 28.5

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