Israel
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
Top imports
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.