Israel’s economy relies heavily on exports and imports, with foreign trade comprising 80 percent of its GDP. The main trading partners with Israel are the US, the European Union and Asia.

 

Israel exports more than $30 billion in goods annually, with nearly $11 billion in high-tech products.  The US accounts for 36.7 percent of Israel’s exports, making it Israel’s main export market.

 

In 2004, Israel exported $10.7 billion to Western Europe. Another important trading partner for Israel is Asia, which purchased $7.121 billion from Israel in 2004. Diamonds account for 40 percent of Israel’s exports to Asia, with high-tech products comprising another 42 percent.

 

Central and Eastern Europe is an upcoming region for Israel exports, comprising 3.8 percent or $1.486 billion. A billion dollars worth of Israeli goods is also sold annually to Latin America, with a half a billion to Africa and Australia.

 

The majority of imports to Israel come from the EU, with Israel purchasing $16.8 billion in products in 2004. Asia is the second biggest source of imports to Israel, which imported $7.132 billion in 2004. The US is Israel’s third largest source of imports.

 

High-tech industrial products comprise a third of Israel’s exports, including office equipment and computers, electronic components, aircraft industries, electronic communications equipment, industrial and medical control equipment and pharmaceuticals. Excluding diamonds, Israel’s high-tech exports account for nearly half of goods sold to foreign countries.

 

Diamonds account for 21.1 percent of Israel’s exports and metals and machinery comprise 12.1 percent.  Israel also exports textiles and clothing, food and beverages worth $1.68 billion.

 

In the past 10 years, Israel’s exports have grown from $17 billion to $38.6 billion, before reduction of returned goods. North American accounted for 43.7 percent of the increase in exports from Israel during the period. Exports to Western European markets grew by 28.8 percent since 2004, and Asia bought 18.2 percent more in the period.

 

China is an important emerging export market for Israel. In 2004, exports totaled $444.8 million.

 

 

For more information on becoming a main trading partner with Israel you are invited to contact the Israel Export and International Cooperation Institute. To contact us click here.