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Israel

GDP/capita CAGR
5.1%
Unemployment (2025)
3.5%
Gini index (2022)
38.3
CO2/capita (2024)
5.8 t

Israel: strong, sustained growth, 1980–2025

A globally significant technology and defense-industry cluster, built on strong R&D investment and a deep talent pipeline from mandatory military service, has powered growth despite recurring regional conflict. Between 1980 and 2025, Israel's GDP per capita grew from $6,545 to $60,337 (current US$), a compound annual growth rate of 5.1% — strong, sustained growth. Annual GDP growth averaged 4.0% with a year-to-year standard deviation of 2.4 points, reflecting relatively stable macroeconomic conditions. Structurally, agriculture's share of the economy moved from 2.1% to 1.3% of GDP (a classic decline as the economy industrialized/modernized), while services rose from 62.9% to 72.8% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 73.9 to 83.2 years, while tertiary school enrollment moved from 51.1% to 56.3%, while the urban population share grew from 88.8% to 91.6%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions rose from 5.27 to 5.77 tonnes CO2e per person; income inequality (Gini index) widened from 36.5 to 38.3; the poverty headcount ratio fell from 0.5% to 0.4%.

What it trades

Top exported and imported products, approximate share of total trade value.

Top exports

1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ...23.1%
2
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical ...13.3%
3
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof8.5%
4
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad ...8.4%
5
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral ...6.7%
6
Plastics and articles thereof4.3%
7
Arms and ammunition; parts and accessories thereof4.0%
8
Miscellaneous chemical products3.6%
9
Pharmaceutical products3.0%
10
Aircraft, spacecraft, and parts thereof2.7%

Top imports

1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ...13.4%
2
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof12.0%
3
Vehicles other than railway or tramway rolling stock, and parts and accessories thereof8.8%
4
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral ...8.3%
5
Pharmaceutical products4.3%
6
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical ...4.2%
7
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad ...3.7%
8
Plastics and articles thereof3.4%
9
Commodities not elsewhere specified2.8%
10
Iron and steel2.7%

Events shaping this economy

Central bank perspective

Why the charts below look the way they do, drawing on the country’s own central bank and monetary authority.

Leading companies in Israel

Check Point Software · TechnologyTeva Pharmaceutical · PharmaceuticalsWix.com · TechnologyBank Hapoalim · BankingNICE Ltd · Technology

Macroeconomic

GDP growth
% annual
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GDP per capita
current US$
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Inflation (CPI)
% annual
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Unemployment
% of labor force
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Government debt
% of GDP
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Exports
% of GDP
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Imports
% of GDP
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Foreign direct investment, net inflows
% of GDP
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Current account balance
% of GDP
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Government expenditure
% of GDP
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Structural & Microeconomic

Agriculture, value added
% of GDP
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Industry, value added
% of GDP
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Services, value added
% of GDP
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Labor force participation
% of population 15+
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Gini index (inequality)
index (0-100)
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Poverty headcount ratio
% of population
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Education & Development

Tertiary school enrollment
% gross
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Adult literacy rate
% of people 15+
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Education spending
% of GDP
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Primary pupil-teacher ratio
pupils per teacher
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Life expectancy at birth
years
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Urban population
% of total
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Total population
people
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Environmental Cost

CO2 emissions per capita
t CO2e per capita
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