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.
GDP likely contracted sharply in annual and quarterly terms in Q4 due to Israel’s war on Hamas. The economy was hampered by the call-up of reservists, restrictions on the entry of Palestinian workers, the closure of educational establishments, population displacement, weak sentiment and a collapsing tourism industry—visitor arrivals were down nearly 80% year on year. That said, the peak impact of the conflict appears to have passed: After tumbling month on month in October–November, economic activity returned to growth in December, and business and consumer sentiment spiked in the same month. The economy should return to growth in sequential terms in Q1 2024 as the war’s impact fades. In January, the cabinet approved a revised ILS 582 billion (around USD 160 billion) 2024 budget, with extra security spending partly offset by budget cuts elsewhere, and a 6.6% of GDP fiscal deficit target.
Projections out to 2033.

47 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 20 expert analysts.

Want to get insight on the economic outlook for Israel in the coming years? FocusEconomics collects projections out to 2033 on 47 economic indicators for Israel from a panel of 20 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

2018 2019 2020 2021 2022
Population (million) 9.0 9.1 9.3 9.5 9.7
GDP (USD bn) 375 400 412 490 525
GDP per capita (USD) 41,779 43,734 44,367 51,801 54,331
GDP (ILS bn) 1,347 1,425 1,417 1,582 1,764
Economic Growth (Nominal GDP, ann. var. %) 4.8 5.8 -0.5 11.6 11.5
Economic Growth (GDP, ann. var. %) 4.2 3.8 -1.4 9.3 6.4
Domestic Demand (ann. var. %) 4.7 4.1 -3.1 11.1 7.5
Private Consumption (ann. var. %) 3.6 4.0 -7.4 11.4 7.5
Government Consumption (ann. var. %) 3.9 2.9 2.7 5.2 0.0
Fixed Investment (ann. var. %) 7.7 3.7 -3.1 13.5 10.4
Exports (G&S, ann. var. %) 5.7 2.9 -2.5 14.8 8.5
Imports (G&S, ann. var. %) 7.3 3.8 -8.0 21.2 12.1
Industrial Production (mom s.a. var. %) 3.5 2.9 6.3 5.9 15.0
Unemployment (% of active population, eop) 4.3 3.5 4.8 4.0 4.1
Unemployment (% of active population, aop) 4.0 3.8 4.3 5.0 3.8
Fiscal Balance (% of GDP) -2.9 -3.7 -11.3 -4.3 0.6
Public Debt (% of GDP) 59.6 58.9 71.0 67.5 60.0
Money (ann. var. of M2 %) 4.6 4.4 17.6 19.9 12.7
Inflation (CPI, ann. var. %, eop) 0.8 0.6 -0.7 2.8 5.3
Inflation (CPI, ann. var. %, aop) 0.8 0.8 -0.6 1.5 4.4
Inflation (WPI, ann. var. %, eop) 1.4 -1.2 -4.3 11.0 9.0
BOI Interest Rate (%, eop) 0.25 0.25 0.10 0.10 3.25
10-Year Bond Yield (%, eop) 2.27 0.96 0.77 1.28 3.58
Exchange Rate (ILS per USD, eop) 3.74 3.45 3.21 3.11 3.53
Exchange Rate (ILS per USD, aop) 3.60 3.56 3.44 3.23 3.36
Current Account Balance (USD bn) 11.2 13.6 20.0 19.4 20.6
Current Account Balance (% of GDP) 3.0 3.4 4.9 4.0 3.9
Merchandise Trade Balance (USD bn) -16.7 -15.3 -11.4 -21.7 -26.1
Merchandise Exports (USD bn) 60.2 60.4 59.1 69.8 79.9
Merchandise Imports (USD bn) 76.9 75.7 70.5 91.4 106.0
Merchandise Exports (ann. var. %) 3.4 0.3 -2.1 18.0 14.5
Merchandise Imports (ann. var. %) 12.2 -1.6 -6.8 29.6 16.0
Foreign Direct Investment (USD bn) 21.5 17.4 23.1 21.5 27.8
International Reserves (USD bn) 115 126 173 213 194
International Reserves (months of imports) 18.0 20.0 29.5 28.0 22.0
External Debt (USD bn) 94.3 103.2 129.9 160.3 155.9
External Debt (% of GDP) 25.2 25.8 31.5 32.7 29.7

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