address: PSC 98, Box 29, APO AE 09830
telephone: [972] (3) 519-7369/7453/7454/7457/7458/7551/7575
FAX: [972] (3) 516-4390
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

Economy Israel

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 imports
substantial quantities of grain, but is largely self-sufficient in
other agricultural products. Cut 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 bitter Israeli-Palestinian conflict; difficulties
in the high-technology, construction, and tourist sectors; and
fiscal austerity in the face of growing inflation led to small
declines in GDP in 2001 and 2002. The economy grew at 1% in 2003,
with improvements in tourism and foreign direct investment. In 2004,
rising business and consumer confidence - as well as higher demand
for Israeli exports boosted GDP by 3.9%.

GDP (purchasing power parity):
$129 billion (2004 est.)

GDP - real growth rate:
3.9% (2004 est.)

GDP - per capita:
purchasing power parity - $20,800 (2004 est.)

GDP - composition by sector:
agriculture: 2.8%
industry: 37.7%
services: 59.5% (2003 est.)

Labor force:
2.68 million (2004 est.)

Labor force - by occupation:
agriculture, forestry, and fishing 2.6%, manufacturing 20.2%,
construction 7.5%, commerce 12.8%, transport, storage, and
communications 6.2%, finance and business 13.1%, personal and other
services 6.4%, public services 31.2% (1996)

Unemployment rate:
10.7% (2004 est.)

Population below poverty line:
1