Israel

Economic indicators

Israel has a diversified and techologially advanced economy with an appreciable but decreasing government ownership. After the recession in 2001 and 2002 due to the slow down of the global economy , information technology crisis and internal security problems, the Israeli economy has re-established from 2003. GDP gwoth rate was 4.8 % in 2004, 5.3 % in 2005, 5.2 % in 2006, 5.3 % in 2007 and wiil be 3.6 % in 2008. The leading sector of technology is the main engine and the foreign investments have returned to the country. IMF forecasts a growth of 4.4 % in 2007. A high rate of unemployment (more than 10% of the active population) is the main cause of concern, even though inflation has been checked (around 2.5%). Inspite of a slight slow down which has followed the Lebanese war in the months of June and August 2006, the current account has remained in surplus because of the basic economic principles of Israel. A wave of well educated and qualified Jewish immigrants originating from the former USSR (constitutes around 13% of the population now) played an important role in the ongoing development of the country's leading technology sector.

Main sectors of industry

The agricultural sector employs 2% of the population and the main crops of the country are fruits and vegetables, cereals, wine and cattle rearing. Israeli companies, specially in the field of lead technology, have benefited considerably from raising funds from Wall Street and other financial markets of the world. Israel is ranked at 2ème place behind Canada for the number of companies registered at the stock exchanges on United States. The lead technology industries represent 40% of the GDP. Other important sectors of activity in Israel are diamond cutting, textiles and tourism. The last is always important inspite of the Israel-Palestinian conflict. The pharmaceutical sector registered good results as Israel has specialised in generic medicines.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Ministries

Ministry of Agriculture and Rural DevelopmentMinistry of Foreign AffairsMinistry of Industry and TradeMinistry of CommunicationsMinistry of Construction and HousingMinistry of FinanceMinistry of Tourism

Statistical Office

Central Bureau of Statistics

Central Bank

Bank of Israel

Stock Exchange

Tel-Aviv Stock Exchange

Online newspapers

Globes
Haaretz

Search Engines

Dapey Reshet
Tapuz
Walla

Economic portals

Port2Port, Israeli Trade Portal

Political outline

Executive Power

The President is Head of the State and he is elected by the Parliament of the country for a seven year term. His role is essentially ceremonial. The President chooses the leader of the party or majority coalition in the parliament to exercise the functions of the Prime Minister, for a four year term. The Prime Minister is head of the government and it is he who holds the executive power, namely the execution of the law and management of current affaire of the country. The Cabinet is chosen by the Prime Minister before being approved by the Parliament.

Legislative Power

The legislative power is Israel is unicameral. The parliament consists of 120 members, elected by universal suffrage universal for a four year term. The parliament can decide to be dissolved by a simple majority, during a censure motion. The Prime Minister cannot directly dissolve the parliament, he cannot veto it. The Israeli citizens have considerable political rights.

Main political parties

The Israeli political system is based on proportional representation, which allows having a system with several parties. No one is in a position to solely assume power,which forces them to cooperate to form coalition governments. The main political parties of the country are :
- Kadima : centrist party, which advocates fixing the borders with the future Palestinian State;
- The Workers Party (Havoda) : left center zionist political party;
- Le Likoud : right nationalist party which draws its roots from the Zionist movement
- Shas : advocates ultra-orthodox Judaism.

Current political leaders

President: Shimon PERES (since July 2007)
Prime Minister: Ehud OLMERT (since May 2006)- Kadima, as head of the coalition government

Next election dates

Presidential: 2014
Parliamentary: in 2010

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