Israel’s economy is firmly anchored in the world economy and focused on exports. Foreign trade accounted for 56% of GDP.  The country has signed 10 free trade agreements with a number of countries and groups including the European Union, EFTA, the United States, Canada, Mercosur, India, China, Vietnam and others.

Until early 2020, the economy continued to perform remarkably well, with strong growth, low and falling unemployment and healthy public finances.

The country has enjoyed growth rates higher than the OECD county average, of which Israel has been a member since 2010.

The share of spending on research and development reached 4.5% of GDP, i.e. the highest rate in the world, ahead of Korea and Sweden.  

The country had no significant natural resources until oil deposits were discovered in the Mediterranean. They will enable Israel to increase its energy security. 

*Disclaimer: The European Union and its Member States are raising awareness of risks faced by European companies and citizens when engaging in economic and financial activity in Israeli colonies. Any European company or European citizen conducting financial transactions, realizing investment, purchasing goods or engaging in any other economic activity (including tourism) in Israeli colonies/benefiting Israeli colonies will face the risk of economic and legal sanctions as – according to international law – Israeli colonies are established on occupied territories and are not formally recognized as part of the Israeli territory.