Economy
Overview:
Israel has a market economy with substantial government participation.
It depends on imports of crude oil, grains, raw materials, and
military equipment. Despite limited natural resources, Israel has
intensively developed its agricultural and industrial sectors over the
past 20 years. Industry employs about 22% of Israeli workers,
construction 6.5%, agriculture, forestry, and fishing 3.5%, and
services most of the rest. Diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are leading exports.
Israel usually posts current account deficits, which are covered by
large transfer payments from abroad and by foreign loans. Roughly half
of the government's external debt is owed to the United States, which
is its major source of economic and military aid. To earn needed
foreign exchange, Israel has been targeting high-technology niches in
international markets, such as medical scanning equipment. The influx
of Jewish immigrants from the former USSR, which topped 450,000 during
the period 1990-93, increased unemployment, intensified housing
problems, and strained the government budget. At the same time, the
immigrants bring to the economy valuable scientific and professional
expertise. Economic problems have eased as immigration has declined,
but activity has slowed as the economy shifts from housing to
export-driven growth.
National product:
GDP - purchasing power equivalent - $65.7 billion (1993 est.)
National product real growth rate:
3.5% (1993 est.)
National product per capita:
$13,350 (1993 est.)
Inflation rate (consumer prices):
11.3% (1993 est.)
Unemployment rate:
10.4% (1993 est.)
Budget:
Budget
| revenues | expenditures | export |
| 33.4 billion | 36.3 billion | 14.1 billion |
commodities:
machinery and equipment, cut diamonds, chemicals, textiles and
apparel, agricultural products, metals
partners:
US, EC, Japan
Imports:
$20.3 billion (c.i.f., 1993 est.)
commodities:
military equipment, investment goods, rough diamonds, oil, other
productive inputs, consumer goods
partners:
US, EC
External debt:>
$24.8 billion (December 1993 est.)
Industrial production:
growth rate 6.5% (1993 est.); accounts for about 30% of GDP
Electricity:
capacity:
5,835,000 kW
production:
21.84 billion kWh
consumption per capita:
4,600 kWh (1992)
Industries:
food processing, diamond cutting and polishing, textiles and apparel,
chemicals, metal products, military equipment, transport equipment,
electrical equipment, miscellaneous machinery, potash mining,
high-technology electronics, tourism<>BR
Agriculture:
accounts for about 7% of GDP; largely self-sufficient in food
production, except for grains; principal products - citrus and other
fruits, vegetables, cotton; livestock products - beef, dairy, poultry
Illicit drugs:
increasingly concerned about cocaine and heroin abuse and trafficking
Economic aid:
recipient:
US commitments, including Ex-Im (FY70-90), $18.2 billion; Western
(non-US) countries, ODA and OOF bilateral commitments (1970-89), $2.8
billion
Currency:
1 new Israeli shekel (NIS) = 100 new agorot
Exchange rates:
new Israeli shekels (NIS) per US$1 - 2.9760 (February 1994), 2.8301
(1993), 2.4591 (1992), 2.2791 (1991), 2.0162 (1990), 1.9164 (1989)
Fiscal year:
calendar year (since 1 January 1992)
Communications
Railroads:
600 km 1.435-meter gauge, single track; diesel operated
Highways:
total:
13,300 km
paved:
13,300 km
Pipelines:<>BR
crude oil 708 km; petroleum products 290 km; natural gas 89 km
Ports:
Ashdod, Haifa
Merchant marine:
33 ships (1,000 GRT or over) totaling 637,097 GRT/737,762 DWT, cargo
8, container 22, refrigerated cargo 2, roll-on/roll-off cargo 1
note:
Israel also maintains a significant flag of convenience fleet, which
is normally at least as large as the Israeli flag fleet; the Israeli
flag of convenience fleet typically includes all of its oil tankers
Airports:
total:
55
usable:
48 - with permanent-surface runways:
30 - with runways over 3,659 m:
1- with runways 2,440-3,659 m:
6 - with runways 1,220-2,439 m:
Telecommunications:
most highly developed in the Middle East although not the largest;
good system of coaxial cable and microwave radio relay; 1,800,000
telephones; broadcast stations - 14 AM, 21 FM, 20 TV; 3 submarine
cables; satellite earth stations - 2 Atlantic Ocean INTELSAT and 1
Indian Ocean INTELSAT
Defense Forces
Branches:
Israel Defense Forces (including ground, naval, and air components)
note:
historically, there have been no separate Israeli military services
Manpower availability:
males age 15-49 1,257,345; females age 15-49 1,280,899; males fit for
military service 1,026,699; females fit for military service
1,049,998; males reach military age (18) annually 47,297 (1994 est.);
females reach military age (18) annually 45,214 (1994 est.); both
sexes are liable for military service
Defense expenditures:
exchange rate conversion - $12.5 billion, 18% of GDP (1993)
Copyright © 1995 Trade Point Israel. E-Mail: tptelisr@netvision.net.il