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Israel Table of Contents

Israel

ECONOMY

Gross National Product (GNP): Approximately US$33 billion (US$7,576 per capita) in 1987. Between 1973 and 1983 real GNP growth rate was approximately 2.0 percent per year. Real GNP increased 2.4 percent in 1984, increased 3.7 percent in 1985, increased 3.3 percent in 1986, and increased 5.2 percent in 1987.

Agriculture: Efficient and modern. Irrigation extensive, but all available water resources currently being used. Main products included cereals, fruits, vegetables, poultry, and dairy products. Specialization in high-value produce, partly for export. Imports of grains and meat. Agriculture's share of GNP 5 percent in 1986.

Industry: Contributed 23 percent of GNP and employed 23 percent of labor force in 1986. Major industries included electronics, biotechnology, diamond cutting and polishing, energy, chemicals, rubber, plastics, clothing and textiles, and defense.

Imports: US$9.2 billion in 1986, excluding US$1.1 billion of direct defense imports. Materials for processsing accounted for more than 75 percent of nondefense imports. Bulk of imports from industrialized countries.

Exports: US$6.9 billion in 1986. Metals, machinery, and electronics represented main exports (US$2.2 billion in 1986). Diamonds were second largest export (US$1.9 billion). Main markets in industrial countries.

Balance of Payments: During 1986 Israel had current account surplus of US$1.4 billion. Situation resulted from Economic Stabilization Program adopted in July 1985.

Currency and Exchange Rates: New Israeli shekel introduced September 1985, worth 1,000 of former shekels; 100 agorot (sing., agora--see Glossary) = 1 new Israeli shekel. Average exchange rate 1988 1.6 NIS per US$.

Data as of December 1988