The Israeli Economy: Fundamentals, Characteristics and Historic Overview

The Israeli Economy: Fundamentals, Characteristics and Historic Overview

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    Published by the Israel Ministry of Finance
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    The Ministry of Finance recently published an English booklet, describing the fundamental characteristics of the Israeli economy, and giving an historic perspective on major developments throughout the years.

    The booklet is designed for economists and non-economists alike. It opens with a very broad description of the Israeli economy today: an advanced, resilient, innovation-driven and knowledge-based economy, which developed over the years into an R&D and high-tech powerhouse.

    The overview goes briefly through the historic development of the Israeli economy, surveying its growth, its population and society, its industry and trade, its public sector, inflation and currency.

    The overview also focuses on data-based graphs rather than text, as numbers and figures complete the story in the briefest and clearest way.



    More information and data on the Israeli economy and Israel's economic policy can be found in the Israeli Ministry of Finance English website.


    Table of Contents

    Israel Today
    - Israel in the World Today
    - Advanced Economy
    - Resilient Economy
    - Cultural Advantages
    - Innovative Economy: The Start-Up Nation
    - High-Tech Economy: The Silicon Wadi
    - From Socialism to an Open Market

    Historic Economic Growth
    - GDP Growth
    - GDP per Capita Growth
    - Population Growth and Immigration: Aliyah
    - Capital per Employee
    - Human Capital Growth: Education

    Society and Employment
    - Society
    - Participation Rate and Employment
    - Worker Unions: the 'Histadrut'

    Industry and Trade
    - From Oranges to Software
    - Israel's Main Trading Partners

    Government Expenditures
    - Government Expenditures as a % of GDP
    - Security Expenditures
    - Historic Budget Deficit
    - Budget Deficit since 1985
    - Historic Public Debt
    - Public Debt in Recent Years

    Inflation
    - Historic Inflation
    - Israel’s Inflation Crisis and the Stabilization Plan
    - Inflation in Recent Years

    Currency
    - From Israeli Lira to New Israeli Shekel
    - New Israeli Shekel Exchange Rates

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    Dear Readers,

    We are happy to present you with this publication, describing the fundamental characteristics of the Israeli economy, and giving an historic perspective on major developments throughout the years. This publication is designed for both economists and non-economists altogether.

    The publication opens with a very broad description of the Israeli economy today: an advanced, resilient, innovation-driven and knowledge-based economy, which developed over the years into an R&D and High-Tech powerhouse. The overview goes briefly through the historic development of the Israeli economy, surveying its growth, its population and society, its industry and trade, its public sector, inflation and currency.

    The publication also focuses on data-based graphs rather than text, as we believe that the numbers and figures complete the story in the briefest and clearest way. I hope you find it both insightful and useful.

    Since this summer of 2011, Israel is undergoing wide social protests over the cost of living and several welfare issues, such that might influence our socioeconomic priorities. I am confident that our economy will be able to contain the necessary adjustments in a responsible manner, while maintaining fiscal discipline. It will continue to demonstrate impressive results and become an ever more relevant market in the global economy.

    Sincerely,
    Dr. Yuval Steinitz
    Minister of Finance

     
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