Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.
Last Published: 8/13/2019

The United States is Israel's single largest trading partner. Since signing the Free Trade Agreement (FTA) in 1985, U.S.-Israel–trade has grown eight-fold. Nearly all non-agricultural trade tariffs between the United States and Israel have been eliminated since 1995.  In 2017, Gross Domestic Product (GDP) real growth increased by 3.4 percent over 2016. Israel’s GDP Purchasing Power Parity (PPP) in 2017 was $334.6 billion.

In 2017, Per Capita GDP (PPP) increased from $37,269 in 2016 to $38,427. Israel’s 2017 inflation rate was 0.4 percent, up from -0.2 percent, in 2016.  Inflation forecast for 2018 is 1.1 percent.  Israel’s 2017 unemployment rate (working age population 15+) was 4.2 percent, compared to 4.8 percent in 2016.  Unemployment rate was 3.7 percent among working age population 25-64.

Exports of U.S. goods to Israel in 2017 were $12.5 billion, compared to $13.2 billion in 2016 and $13.5 billion in 2015. U.S. imports of goods from Israel were $22.37 billion in 2017, $22.63 billion in 2016 and $24.91 billion in 2015. Exports of U.S. business services to Israel in 2016 were $3.18 billion. Imports of business services from Israel were $10.75 billion, including $5.3 billion in Research and Development services. 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

Israel Trade Development and Promotion