Last updated in January 2025.
A resilient economy will be boosted by long-lasting ceasefire
B2
Medium RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Form of state | Parliamentary Democracy |
Head of government | Benjamin Netanyahu (Prime Minister) |
Next elections | 2026, legislative |
Strengths & Weaknesses

- Israel excels in high-tech goods, business services and defense, with a developed economy and skilled labor force
- Despite challenges of war and pandemic, Israel economy remained resilient
- Record-low unemployment at 2.6% in November 2024 and inflation dropping to 3.2% indicate a tight labor market and stable economic conditions

- The conflict has had severe consequences for several sectors and the labor market and further exposed commercial banks to sovereign risk
- As politics shift towards post-conflict dynamics, the Israeli state may become more susceptible to instability
- Military spending in 2024 increased the deficit to over 6.9% of GDP, contributing to public debt nearing 69%, increasing the cost of financing
Economic Overview
Trade Structure by destination/origin
(% of total, 2023)
Trade Structure by product
(% of total, annual 2023)
Collection Complexity
The Allianz Trade Collection Complexity Score provides a simple assessment of how easy it is to collect debt around the world. The 2022 edition covers 49 countries that represent nearly 90% of global GDP and 85% of global trade.
Contacts
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