The
Israeli economy is a success story. Even though it has hardly any
natural resources, and in spite of wars and waves of immigration that
have placed an enormous burden on it, Israel is among the most
prosperous countries in the world. Two reasons for Israel’s economical
success are direct external aid, totaling at least some $108 billion to
date, and an educated work force.
Since
its establishment, Israel’s exports of goods and services have grown
from some 30 million dollars a year to approximately $2.98 billion a
year. Over this period, many changes have occurred in the Israeli
economy. In the beginning, the state’s main exports were citrus fruit,
as well as processed diamonds and some industrial products. Today,
however, most of its exports consist of the products of high-tech
industries in diverse areas such as electronics, software, hardware,
optics, communications and medical instrumentation.
In
the course of time, Israel’s economical ideology has also changed. In
the beginning, the economy was prominently centralist, characterized by
major state involvement in economic activity. Following political change
in 1977, Israel’s governments have adopted a more liberal economical
policy.
The GDP of the Israeli economy is some $179 billion, while the GDP per person is some $27,300, ranking Israel 21st
when compared to the Organization for Economic Cooperation and
Development member countries in 2008. Its exports of goods and services
total some $2.98 billion a year, while its imports total some $3.3
billion a year. Its annual growth rate in 2008 was about 4.1%, the
inflation rate as of early 2009 was around 3.4%, and the unemployment
rate as of early 2009 was 6.8%. The Israeli economy’s predominant sector
is high-tech, which became the driving force behind the country’s
economic growth in the 1990s. Other prominent sectors in the Israeli
economy are pharmaceuticals, chemicals, tourism, military industries,
the metal industry and polished diamonds.