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Foreign trade figures of Israel

Foreign Trade in Figures

Israeli foreign trade represents 51% of the country's GDP (World Bank, latest data available) and exports, the backbone of the country's growth, represent about one-quarter of the country's GDP. The main goods imported by Israel include machine and electronics manufacturing  (15%), machinery and equipment (8.5%), chemical products (6.9%), and furniture and electrical equipment (5.3%). In 2022, manufacturing, mining and quarrying exports (excluding diamonds) constituted 91% of all exported goods, exports of diamonds represented 8% and the remaining 1% were agriculture, forestry and fishing exports (data CBS). A breakdown by economic activity points to a 91% increase in the exports of pharmaceutical products, with electronic components and boards rising by 31.7% compared with 2021.

In terms of geographic origin, imports came chiefly from China (13.3%), the U.S. (9%), Germany (6.6%), Switzerland (5.7%) and Turkey (5.3%); whereas exports were directed mainly towards the U.S. (by far the largest partner, accounting for 27.7% of total exports), China (6.8%), India (5.7%), the UK (4.6%), and Ireland (3.8% - data CBS 2022). Israel has a liberal import policy: in addition to the Free Trade Agreement (FTA) with the United States, Israel has FTAs with Canada, Turkey, the EU and EFTA. Furthermore, in 2022 it signed an FTA with the United Arab Emirates.

Israel’s balance of trade for goods is structurally negative, but the one of services is positive thanks to strong exports of high-tech services, such as computer consulting services, computer services and software. According to WTO’s latest data, in 2021 merchandise exports reached USD 60.1 billion (+20.9% y-o-y), while imports amounted to around USD 70 billion (+31.6%). In the same year, exports of services reached USD 71.7 billion, with imports standing at USD 32 billion (+36.8% and +20%, respectively). Thanks to the contribution of services, the World Bank estimated the country’s trade balance to be positive by 4% of GDP in 2021. According to the Israeli Statistics Office (CBS), in 2022 the trade deficit (goods only) increased by 19.6% year-on-year, as exports of goods increased by 22.8% and imports by 21.6% (to USD 66.8 and 104 billion, respectively).

 
Foreign Trade Values 20172018201920202021
Imports of Goods (million USD) 71,90876,59876,59169,98592,155
Exports of Goods (million USD) 61,15061,95258,50749,76360,159
Imports of Services (million USD) 28,57930,51631,94625,04232,073
Exports of Services (million USD) 44,68750,62455,51252,54571,785

Source: World Trade Organisation (WTO) ; Latest available data

Foreign Trade Indicators 20172018201920202021
Foreign Trade (in % of GDP) 56.658.956.350.955.0
Trade Balance (million USD) -10,343-16,725-15,073-11,675-21,486
Trade Balance (Including Service) (million USD) 6,8553,2048,99618,44419,305
Imports of Goods and Services (Annual % Change) 4.47.23.2-8.120.6
Exports of Goods and Services (Annual % Change) 4.95.73.7-2.714.6
Imports of Goods and Services (in % of GDP) 27.329.027.023.225.5
Exports of Goods and Services (in % of GDP) 29.229.929.327.729.5

Source: World Bank ; Latest available data

Foreign Trade Forecasts 20222023 (e)2024 (e)2025 (e)2026 (e)
Volume of exports of goods and services (Annual % change) 7.83.13.23.33.4
Volume of imports of goods and services (Annual % change) 11.93.34.64.64.6

Source: IMF, World Economic Outlook ; Latest available data

Note: (e) Estimated Data

 
International Economic Cooperation
Israel is a member of the following international economic organisations: IMF, OECD, Black Sea Economic Cooperation Zone (BSEC) (observer), ICC, WTO, among others. For the full list of economic and other international organisations in which participates Israel click here. International organisation membership of Israel is also outlined here.
Free Trade Agreements
The complete and up-to-date list of Free Trade Agreements signed by Israel can be consulted here.
 

Main Partner Countries

Main Customers
(% of Exports)
2021
United States 27.1%
China 7.3%
India 4.5%
Netherlands 3.7%
United Kingdom 3.4%
See More Countries 53.9%
Main Suppliers
(% of Imports)
2021
China 11.6%
United States 9.4%
Switzerland 7.2%
Germany 7.1%
Türkiye 5.2%
See More Countries 59.5%

Source: Comtrade, 2022. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

Main Products

60.2 bn USD of products exported in 2021
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 14.6%
Electronic integrated circuits; parts thereofElectronic integrated circuits; parts thereof 6.2%
Instruments and appliances used in medical,...Instruments and appliances used in medical, surgical, dental or veterinary sciences, incl. scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments, n.e.s. 3.9%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 3.5%
Prepared binders for foundry moulds or cores;...Prepared binders for foundry moulds or cores; chemical products and preparations for the chemical or allied industries, incl. mixtures of natural products, n.e.s. 3.5%
See More Products 68.3%
92.2 bn USD of products imported in 2021
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 7.0%
Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90) 6.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.5%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 3.1%
Automatic data-processing machines and units...Automatic data-processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.3%
See More Products 75.4%

Source: Comtrade, 2022. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 
 

To go further, check out our service Import Export Flows.

 

Main Services

Source: United Nations Statistics Division, 2023. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

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Latest Update: March 2023

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