Israel 

Israel country policy

Policy established 12 September 2006

• No Restrictions
• The country ceiling is 2000 mln euro
• Early warning signal 1500 mln euro
• - of which was used as at 2011-12-31 7 mln euro

Country class: 0

Israel country facts

Atradius Dutch State Business Economic Research 

Country Report last updated :  Jan. 18th, 2012 
Country ISRAEL 

Political Situation 
Rather Unstable

Head of state
President Shimon Peres.

Form of government
Centre-right coalition headed by p.m. Binyamin Netanyahu.

Internal Economic Situation
Reasonably Good

General situation
The economy has rapidly recovered from the setback of the 2009-global recession: real GDP-growth >4% p.a. based on buoyant private consumption, government residential investments and exports. Israel’s dynamic high-tech sector is a key investment driver. After a peak in 2011H1 (4% p.a.), inflation has moderated somewhat although house prices continued to rise rapidly. BOI has tightened mortgage lending criteria to mitigate the risk of a bubble in the housing market; the measures will hit profitability but underpin banking sector stability. 
 
External Economic Situation
Good; Very Strong Liquidity 

Main sources of foreign exchange
Chemicals (27%), polished diamonds (18%), electronics and medical equipment, tourism.

Main foreign markets
USA (36%), EU, Hong Kong.

Main expenses of foreign exchange
Fuels (17%), diamonds (13%), machinery (10%). 
 
Balance of payments
Larger trade deficits since 2009 because of strong growth of imports are at the root of current account deficits from 2011. After two years of a strong Shekel (prompting BOI to temper the influx of hot money by levies), the currency has weakened in 2011H1.