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The strong trade and investment ties outside of the Middle East have insulated Israel's free-market
economy from regional political instability.
Since its creation in 1948, Israel has seen remarkable developments, emerging from a low-income, and
high-inflation developing economy in the 1970s to a medium to high-income advanced economy while
at the same time being increasingly integrated into the world economy in trade and finance.
Trade is significant for Israel’s economy; the combined value of exports and imports equals 57 percent of
GDP. Israel has many free trade agreements with countries or group of countries;
The EU, the USA, EFTA, Mercosur, Turkey, Mexico, Canada, Jordan, Egypt.
Financial institutions offer a wide range of services. Capital markets are evolving as part of Israel’s effort
to reinvent itself as a regional financial hub.
Israel’s economy is performing strongly and continues to register remarkable macro-economic and
fiscal performance. Growth is strong and unemployment low. With low interest rates and price
stability, financial policy is prudent, and public debt comparatively low and declining.
The external position is solid, thanks to a dynamic high-tech sector. The average standard of living is
improving, mainly due to higher employment rates. Continued accommodative macro policies and
planned investments in the offshore gas fields in the coming years will spur further growth. Against
this backdrop, Israelis remain on average more satisfied with their lives than residents of most other
OECD countries.
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