Israel Introduction Key Economic Facts Risk Assessment (Provided by Coface) Israel is located in the Middle East bordering the Income Level (by per capita High Income Country rating: A3 - Changes in generally good but Mediterranean Sea. Neighboring countries include Egypt, GNI): somewhat volatile political and economic environment can Jordan, Lebanon, Syria, and the regions Gaza Strip and Level of Development: Developing affect corporate payment behavior. A basically secure West Bank. Despite its small size, Israel is GDP, PPP (current international $381.56 billion (2019) home to a variety of geographic features, $): business environment can nonetheless give rise to from the Negev desert in the south, GDP growth (annual %): 3.47% (2019) occasional difficulties for companies. Corporate default mountain ranges in the north, and the GDP per capita, PPP (current $42,146.15 (2019) probability is quite acceptable on average. Jordan Rift Valley in the east. The international $): Business Climate rating: A2 - The business environment government system is a parliamentary democracy; the chief Manufacturing, value added (% 11.96% (2018) is good. When available, corporate financial information is of state is the president, and the head of government is the of GDP): prime minister. Israel has an advanced market system in Current account balance (BoP, $13.14 billion (2019) reliable. Debt collection is reasonably efficient. Institutions which the prices of goods and current US$): generally perform efficiently. Intercompany transactions services are determined in a Inflation, consumer prices 0.84% (2019) usually run smoothly in the relatively stable environment (annual %): free price system. rated A2. Labor force, total: 4,248,718 (2020) Unemployment, total (% of 3.78% (2020) Strengths total labor force) (modeled ILO • Technology hub of the region estimate): • Solid institutional structure, positive business Imports of goods and services $108.32 billion (2019) (current US$): environment Location: Western Asia Exports of goods and services $115.71 billion (2019) • Very competitive production tissue, diversified Capital City: Jerusalem (+2 GMT) (current US$): economy with a large number of start-ups Chief of State: President Issac Herzog • Strong international reserves, low inflation Head of Govt.: Prime Minister Naftali Bennett • Improvement of relations with some of the Arab Currency: Israeli Shekel (ILS) GDP Composition % Agriculture Services Industry Manufacturing neighbors Major Languages: <p>Hebrew (official), Arabic (used officially for Arab minority), English Weaknesses 70 (most commonly used foreign • Weaker fiscal dynamics, higher government debt language)</p> 19 1 12 • Increased regional tensions Primary Religions: <p>Jewish 74.8%, Muslim 17.6%, Christian 2%, Druze 1.6%, other *Although Manufacturing is included in the Industry figures, it is also separately • New elections fuelling political uncertainty 4%</p> reported because it plays a critical role in economy. U.S. Embassy Calling Code: 972 Rankings Voltage: 230 Index Rank U.S. Embassy Israel Corruption Perceptions Index 35 / 180 71 HaYarkon Street Key Websites EY Globalization Index 15 / 60 Tel Aviv 6343229, Israel Tel: 03-519-7575 Main Government Page: gov.il Global Competitiveness Index 19 / 141 https://il.usembassy.gov/ Commerce Ministry: economy.gov.il Global Enabling Trade Index 30 / 136 Export Promotion Agency: export.gov.il Global Services Location Index 55 / 55 Investment Promotion investinisrael.gov.il Index of Economic Freedom 27 / 179 Agency: International Logistics Performance Index (LPI) 37 / 160 Inward FDI Potential Index 27 / 139 KOF Index of Globalization 38 / 185 Networked Readiness Index (NRI) 21 / 139 Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.