OECD Economic Surveys: Israel 2018

Abstract

This Survey is published on the responsibility of the Economic and Development Review Committee (EDRC) of the OECD, which is charged with the examination of the economic situation of member countries.

The economic situation and policies of Israel were reviewed by the Committee on 18 December 2017. The draft report was then revised in the light of the discussions and given final approval as the agreed report of the whole Committee on 19 January 2018.

The Secretariat’s draft report was prepared for the Committee by Mr. Claude Giorno and Mr Gabriel Machlica under the supervision of Mr. Peter Jarrett. The Survey also benefitted from excellent consultancy work by Mr Jacques Adda. Research assistance was provided by Ms. Isabelle Luong. Editorial assistance was provided by Ms. Claude-Annie Manga-Collard.

The previous Survey of Israel was issued in January 2016.

Information about the latest, as well as previous Surveys, and more information about how Surveys are prepared is available at www.oecd.org/eco/surveys.

Basic statistics of Israel, 2016

(Numbers in parentheses refer to the OECD average)1

LAND, PEOPLE AND ELECTORAL CYCLE
Population (million)	8.2		Population density per km2	371.2	(35.4)
Under 15 (%)	27.9	(18.0)	Life expectancy (years)	83.0	(81.0)
Over 65 (%)	11.5	(16.5)	Men	81.3	(78.4)
Foreign-born (%, 2015)	22.5		Women	81.5	(80.6)
Latest 5-year average growth (%)	1.6	(0.6)	Latest general election	March 2015
ECONOMY
Gross domestic product (GDP)			Value added shares (%)
In current prices (billion USD)	317.9		Primary sector	1.3	(2.4)
In current prices (billion NIS)	1 220.3		Industry including construction	20.8	(26.7)
Latest 5-year average real growth (%)	3.3	(1.9)	Services	77.9	(70.9)
Per capita (000 USD PPP)	37.8	(42.1)
GENERAL GOVERNMENT Per cent of GDP
Expenditure	39.5	(41.5)	Gross financial debt	62.3	(100.3)
Revenue	37.4	(38.6)	Net financial debt	58.7	(65.3)
EXTERNAL ACCOUNTS
Exchange rate (NIS per USD)	3.839		Main exports (% of total merchandise exports)
PPP exchange rate (USA = 1)	3.779		Manufactured goods	31.8
In per cent of GDP			Machinery and transport equipment	27.5
Exports of goods and services	30.3	(53.7)	Chemicals and related products, n.e.s.	23.7
Imports of goods and services	28.2	(49.3)	Main imports (% of total merchandise imports)
Current account balance	3.5	(0.2)	Machinery and transport equipment	37.5
Net international investment position	34.3		Manufactured goods	21.0
			Chemicals and related products, n.e.s.	11.2
LABOUR MARKET, SKILLS AND INNOVATION
Employment rate for 15-64 year-olds (%)	68.6	(66.9)	Unemployment rate, Labour Force Survey (age 15 and over) (%)	4.8	(6.3)
Men	72.0	(74.7)	Youth (age 15-24, %)	8.6	(13.0)
Women	65.2	(59.3)	Long-term unemployed (1 year and over, %)	0.5	(2.0)
Participation rate for 15-64 year-olds (%)	72.1	(71.7)	Tertiary educational attainment 25-64 year-olds (%)	49.9	(35.7)
Average hours worked per year	1 889	(1 763)	Gross domestic expenditure on R&D (% of GDP, 2015)	4.3	(2.4)
ENVIRONMENT
Total primary energy supply per capita (toe, 2015)	2.9	(4.1)	CO2 emissions from fuel combustion per capita (tonnes, 2014)	8.1	(9.3)
Renewables (%, 2015)	5.3	(9.6)	Water abstractions per capita (1 000 m³, 2014)	0.2
Exposure to air pollution (more than 10 μg/m3 of PM2.5, % of population, 2015)	99.5	(75.2)	Municipal waste per capita (tonnes, 2015)	0.6	(0.5)
SOCIETY
Income inequality (Gini coefficienta)	0.346	(0.311)	Education outcomes (PISA score, 2015)
Relative poverty rate (%a)	17.7	(11.3)	Reading	479	(493)
Median disposable household income (000 USD PPPa)	19.1	(23.0)	Mathematics	470	(490)
Public and private spending (% of GDP)			Science	467	(493)
Health care	7.3	(9.0)	Share of women in parliament (%)	26.7	(28.7)
Pensions (2015b)	5.4	(9.1)	Net official development assistance (% of GNI)	0.11	(0.39)
Education (primary, secondary, post sec. non tertiary, 2014)	4.3	(3.7)

Better life index: www.oecdbetterlifeindex.org

1. Where the OECD aggregate is not provided in the source database, a simple OECD average of latest available data is calculated where data exist for at least 29 member countries.

a. 2014 data for the OECD.

b. 2013 data for the OECD.

Source: Calculations based on data extracted from the databases of the following organisations: OECD, International Energy Agency, World Bank, International Monetary Fund and Inter-Parliamentary Union.