Israel as a Market
Aug 17, 2013, Quad City Times
In the last 25 years the economy of Israel has changed dramatically. From a country battling with 3 digit inflation, very high taxes imposed on the business sector and the anterior population, centralized economy controlled by the state, and protection of the domestic industry, it could be stated that Israel today is a vibrant free economy adhering to market principles.
Due to free trade agreements with the us., the e.u. and more than 40 countries all over the world the Israeli economy accepted the agriculture sector is expose almost entirely to global competition. This process changed the face of the industry, moving from "underwear" to "software".
While preserving and developing traditional industries such as diamonds, food processing, chemicals, plastics, agricultural machinery and irrigation, new industries as emerged, such as: pharmaceutical, homeland security, elctro-optics, electronics, medical diagnostic, biotechnology, computers, software and internet.
Special emphasize is placed today on biotechnology and nano-technology which are truly fast spreading and fast growing.
Highly qualified research institutes are working together with business and it is no wonder that the number of Israeli companies traded on NASDAQ is second only to the us and Canada. While achieving all that economic stability was sustained. Low inflation in the rate of 2.5% , strong currency, low external depth to GDP of 13.2% and budget deficit of 3.5% in relation to its GDP (average of the last 5 years).
Foreign trade is balanced as result of the increase export of computer sciences and R&D and also large international companies including "Intel", "Iscar" and "Teva". There are 500,000 businesses in Israel. Many of which are small and mid size. The dramatic improvement of the Israeli economy is manifested in the progress obtained in the last 10 years. Since the year 2003 the population has grown by 18% reaching 8 million. The number of employees in the business sector grow by 32% and the business product grow by 53%. The total GDP is today 250 billion us dollars.
As a country highly dependant on foreign trade 44% of its import of goods is coming from Europe, and only 13% is coming from the usa. While, out of his total exports of goods 34% is directed to Europe and 28% is directed to the usa. In terms of cash total buying power of the country related to imports is in the aria of 90 billion us dollars.
Many Israelis feel that the imbalance of trade, between us and Israel, in favor of Israel, should be rectified and should be a shift of importing more from the us and less from Europe
