| Economy - overview: | Israel has a technologically advanced 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. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable 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 US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy rebounded in 2003 and 2004, growing at a 4% rate each year, as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency in the markets. In 2005, rising consumer confidence, tourism and foreign direct investment - as well as higher demand for Israeli exports - boosted GDP by 4.3%. |
| GDP - per capita | $22,200 (2005 est.) |
| GDP - real growth rate (%) | 4.3% (2005 est.) |
| Agriculture - products | citrus, vegetables, cotton; beef, poultry, dairy products |
| GDP - composition by sector (%) | agriculture: 2.8%, industry: 37.7%, services: 59.5% (2003 est.) |
| Industries | high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metals products, chemical products, plastics, diamond cutting, textiles and footwear |
| Economic aid - recipient | $662 million from US (2003 est.) |
| Debt - external | $73.87 billion (30 June 2005 est.) |
| Population below poverty line (%) | 21% (2005) |
| Labor force - by occupation (%) | agriculture, forestry, and fishing 2.6%, manufacturing 20.2%, construction 7.5%, commerce 12.8%, transport, storage, and communications 6.2%, finance and business 13.1%, personal and other services 6.4%, public services 31.2% (1996) |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
