Israel's Macroeconomic Analysis:
Nominal GDP of USD 511 billion in 2023.
Nominal GDP of USD 525 billion in 2022.
GDP per capita of USD 54,331 compared to the global average of USD 10,589.
GDP per capita of USD 52,363 compared to the global average of USD 10,589.
Average real GDP growth of 3.9% over the last decade.
Average real GDP growth of 4% over the last decade.
Sector Analysis
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%.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.Main Economic Indicators
Economic growthThe 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.
Economic situation in Israel
GDP growth accelerated to 3.8% in quarter-on-quarter annualized terms in Q3, up from 0.3% in Q2 and surpassing market forecasts. The uptick was due to improved fixed investment, while the expansion in private consumption slowed and government spending contracted at a faster pace. However, the economy remained about 1% smaller than its pre-war size; the conflict continued to weigh on labor supply, investment and tourism, while displacing citizens in the north of the country. Our panelists expect GDP growth to be slowing in Q4, as the intensification of conflict with Hezbollah hits business and consumer sentiment, constricts labor supply and disrupts economic activity in the north. In politics, the cabinet recently approved the 2025 budget, which pencils in higher defense spending and taxes plus a fiscal deficit of 4.3% of GDP; our panelists expect the deficit to be larger, at 4.8%.Israel Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 19 expert analysts.
Want to get insight on the economic outlook for Israel in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Israel from a panel of 19 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.