Israel is a relatively small country with limited natural resources and an affluent, bourgeois citizenry; as such, it is highly dependent on international trade, both to supply its industry with natural resources, and to purchase its value-added products. In 2000, foreign trade amounted to 27% of national income. Exports that year totaled $31.4 billion, up 19% from the previous year. Imports, meanwhile, also grew to $35.7 billion. The vast majority (66%) of Israeli exports are manufactured goods and their primary destinations are the US and the EU, which together buy 65% of Israel's exports. Imports are primarily industrial resources (63%)—other large sectors are capital goods (19%) and consumer products (11%).
Cut diamonds top the list of Israel's export commodities (25%), reflecting 17.5% of the world's total diamond exports. Machinery and equipment, including telecommunications equipment (13.6%) and other electrical machinery (11.3%) are important exports.
In 2000 Israel's imports were distributed among the following categories:
Consumer goods | 10.6% |
Food | 4.5% |
Fuels | 9.8% |
Industrial supplies | 38.9% |
Machinery | 26.7% |
Transportation | 9.2% |
Other | 0.3% |
Principal trading partners in 2000 (in millions of US dollars) were as follows:
COUNTRY | EXPORTS | IMPORTS | BALANCE |
United States | 11,734 | 6,641 | 5,093 |
Belgium | 1,873 | 3,548 | -1,675 |
China (inc. Hong Kong) | 1,646 | 1,501 | 145 |
Germany | 1,521 | 2,672 | -1,151 |
United Kingdom | 1,358 | 2,712 | -1,354 |
Netherlands | 899 | 1,437 | -538 |
Italy | 803 | 1,721 | -918 |
France | 754 | 1,158 | -404 |
India | 557 | 535 | 22 |
Switzerland | 502 | 1,918 | -1,416 |
Comment about this article, ask questions, or add new information about this topic: