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Market Overview

  • The U.S. is Israel's largest single country trade partner. Since signing a Free Trade Agreement in 1985, Israel–US trade has grown eight-fold. Since 1995 nearly all trade tariffs between the U.S. and Israel have been eliminated.
  • In 2012, GDP growth decreased to 2.9%, from 4.6% in 2011 and 5.7% in 2010.
  • Israel’s GDP in 2012 was $246.8 billion.
  • In 2012, Per Capita GDP increased slightly to $32,200 compared to $32,200 in 2011. In 2010 it was $31,200.
  • Israel’s 2012 inflation rate remained at 2.1%, as in 2011. In 2010, the inflation rate was 2.7%.
  • Israel’s 2012 unemployment rate increased to 6.3%, compared to 5.6% in 2011 and 6.7% in 2010.
  • Exports of U.S. goods (not including diamonds) to Israel in 2012 were $8.92 billion. In 2011: $8.02 billion. In 2010, exports of U.S. goods to Israel totaled $6.8 billion.
  • U.S. imports from Israel (not including diamonds) in 2012 were $13.9. In 2011: $13.8 billion. U.S. imports from Israel in 2010 totaled $13.2 billion.

Market Opportunities

  • Hi-tech and defense dominate Israel's trade numbers, and Israel remains a global center for hi-tech design and R&D. Hi-tech continues to provide opportunities for U.S.-Israel commercial partnerships, specifically in ICT technologies, safety and security equipment and services, renewable energy technologies, defense equipment, medical technologies and biotechnology products. Power generation and education/training also represent good opportunities.
  • U.S.-Israeli commercial linkages often consist of U.S. firms providing electronic inputs which Israeli firms integrate into final products destined for re-export.

Road technology and infrastructure projects could offer millions of dollars' worth of export opportunities for U.S. firms over the next five years, especially since Israel adopted U.S. standards in intelligent transportation systems.