INDYK

embassy: 71 Hayarkon Street, Tel Aviv

mailing address: PSC 98, Unit 7228, APO AE 09830

telephone: [972] (3) 519-7575

FAX: [972] (3) 517-3227

consulate(s) general: Jerusalem; note - an independent US mission,
established in 1928, whose members are not accredited to a foreign
government

Flag description: white with a blue hexagram (six-pointed linear
star) known as the Magen David (Shield of David) centered between
two equal horizontal blue bands near the top and bottom edges of the
flag

Israel Economy

Economy - overview: Israel has a technologically advanced market
economy with substantial government participation. It depends on
imports of crude oil, grains, raw materials, and military equipment.
Despite limited natural resources, Israel has intensively developed
its agricultural and industrial sectors over the past 20 years.
Israel is largely self-sufficient in food production except for
grains. Cuts diamonds, high-technology equipment, and agricultural
products (fruits and vegetables) are the leading exports. Israel
usually posts sizable current account deficits, which are covered by
large transfer payments from abroad and by foreign loans. Roughly
half of the government's external debt is owed to the US, which is
its major source of economic and military aid. The influx of Jewish
immigrants from the former USSR topped 750,000 during the period
1989-99, bringing the population of Israel from the former Soviet
Union to 1 million, one-sixth of the total population, and adding
scientific and professional expertise of substantial value for the
economy's future. The influx, coupled with the opening of new
markets at the end of the Cold War, energized Israel's economy,
which grew rapidly in the early 1990s. But growth began moderating
in 1996 when the government imposed tighter fiscal and monetary
policies and the immigration bonus petered out. Growth was a strong
5.9% in 2000. But the outbreak of Palestinian unrest in late
September and the collapse of the BARAK Government - coupled with a
cooling off in the high-technology and tourist sectors - undercut
the boom and foreshadows a slowdown to 2%-3% in 2001.

GDP: purchasing power parity - $110.2 billion (2000 est.)

GDP - real growth rate: 5.9% (2000 est.)

GDP - per capita: purchasing power parity - $18,900 (2000 est.)

GDP - composition by sector: agriculture: 4%

industry: 37%

services: 59% (1999 est.)

Population below