How Advanced is Israel’s Economy?

How Advanced is Israel’s Economy?

Israel has a very advanced and technologized economy. In fact, Israel has one of the most advanced market economies out there. The overall economic freedom score for 2019 is 72.8, and it ranks 27 globally when it comes to its economic freedom. As opposed to 2018, the overall score has increased by 0.6 points. In this point, we should expect to see Israel’s Government continue to grow the liberalization levels in Israel. In this current context, the country has a very competitive market economy out there. But let’s find out more on the topic below.

Israel’s industry

Today, Israel is a heavily-industrialized country in most of the sectors. The heavy industrialization is a result of decades of sophisticated research, and development of hi-tech processes, but also equipment.

Today, the overall industry in the country is incredibly diversified and advanced. We can see small workshops, family-run businesses but also huge companies activating in different sectors. In the past, Israel’s economic growth was motivated by two incentives offered by the Government, in 1930 and 1970. Whether the country was pushed by war or just the need to accelerate the economy, the Israeli officials have always strived to become one of the global leading forces in economy. Today, the hi-tech industry sector is thriving, but there are other areas where the country excels.

Hi-tech industries in Israel

The fastest growth rate in Israel is of about 8 percent and it is experienced by hi-tech sectors. These are the most prolific sectors, mainly because of the skilled workforce and capital investment in the area. Almost 5 % of Israel GDP is pumped in hi-tech industries at the current time. According to United Nations experts, Israel ranks among the first 10 countries in the world when it comes to technologization. In the age of information technology, Israel is leading the global game. Here operate top businesses in the field and multi-billion-dollar conglomerates.

The diamond industry in Israel

Israel is also a leader in the diamond industry. Some of the most precious and high-quality diamonds in the world are extracted here and, in many areas, Israel has become synonymous with exquisite stones. Local production is tax-free, a fact that has motivated many entrepreneurs to open and operate businesses in the sector. Only in 2008, the Israeli diamond exports amounted almost $10 billion.

The agriculture sector in Israel

Although the natural resources in Israel are scarce, agriculture is also one of the sectors that generate huge profits and supports the economy. The agricultural production is steadily growing, thanks to a close collaboration between researchers, farmers and related industry players.

Tourism in Israel

Obviously, Israel has become a highly touristic country over time and now, the sector is also booming. Because Israel is favoured by its geographic location and diversity, people from different corners of the world take a big interest in visiting the country.