Israel

Brittney Vermeersch

Overall Score: 70.5 World Rank: 33

Israel Quick Facts/ United States

  • Population: 7.9 million /316.4 million
  • GDP: $273.7 billion /$16.8 trillion
  • GDP Growth: 3.3% /1.9%
  • GDP Per Capita: $34,770 /$53,101
  • Unemployment: 6.7% /7.5%
  • Inflation: 1.5% /1.5%
  • Foreign Direct Investment: $11.8 billion /$187.5 billion

Legal System

Israel has a modern and independent legal system that provides effective means for enforcing property and contractual rights.The judicial system of Israel consists secular courts and religious courts. The system is headed by the President of the Supreme court and the Minister of Justice.

Competitve Markets

Israel trades with high technology products, metal products, electronic and bio medical equipment agricultural products, processed foods, chemicals, pharmaceuticals, and transport equipment. There are many different places that would trade others for what they have.

Limits on Government Regulation

Prices are generally set by market forces, but the government controls food prices and subsidizes some political priorities. The labor market remains relatively flexible, and labor costs are moderate.

An Efficient Capital Market

The evolving financial system, dominated by banks, functions without undue government influence. Credit is allocated on market terms, and relatively sound regulation and supervision assure free flows of financial resources.

Monetary Stability

The recent discovery of large offshore natural gas deposits has improved Israel’s energy security and balance of payments prospects. By having such a natural resource they can trade it will help them stay stable in the economy.

Low Tax Rates

The top individual income tax rate is 48 percent, and the top corporate tax rate is now 26.5 percent. Other taxes include a value-added tax and a capital gains tax. The overall tax burden is equivalent to 28.3 percent of domestic production.

Free Trade

Israel’s average tariff rate is 0.7 percent. The government has worked to facilitate trade. It maintains some sectoral restrictions on foreign investment but generally welcomes investment.
Israel's Economy - part 1/2

Extra Credit

  • Israel has more museums per capita than any other country in the world.
  • Voice mail technology was developed in Israel.