Beyond the Headlines
Beyond the Headlines
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Israel's Economy

Fitch* affirms Israel at 'A+'; outlook stable

On August 14, 2023, Fitch Ratings reaffirmed Israel’s A+ rating with a stable outlook, noting that “Israel retains strong financing capacity with strong demand for government bonds from domestic investors, a diversified global investor base and active Diaspora bonds market.” The report highlighted the country’s “diversified, resilient and high value-added economy and strong external finances” and went on to point out that maintaining Israel’s credit rating was supported by “strong external finances.”

(*Israel bonds are not rated.)

S&P* reaffirms Israel’s AA- rating, cites Israel’s “wealthy and diversified” economy

Standard & Poor's (S&P) has kept Israel’s favorable rating* unchanged at AA- with a “stable” outlook, in its latest analysis. The global ratings agency said Israel’s stable outlook “balances elevated regional and domestic political risks,” among them the judicial overhaul plans, “against the country’s resilient economy, strong balance of payments, and a moderate level of public debt.” The agency cited Israel’s credit strengths including its “wealthy and diversified economy,” its “flexible monetary settings and a relatively deep pool of domestic savings,” but said credit ratings are “constrained by persistent domestic and regional political and security,” The Times of Israel reported on May 13, 2023.

(*Israel bonds are not rated.)

Moody's* affirms Israel's A1 rating and changes outlook from 'positive' to 'stable'

On April 14, 2023, Moody’s Investors Service affirmed the Government of Israel’s A1 rating.

“The affirmation of the A1 ratings reflects Israel's strong economic growth and improving fiscal strength which Moody's expects to continue. The economy has proven resilient to many economic and geopolitical shocks over the past decades and has grown at a rapid clip, helped by Israel's globally competitive high-tech industries. Also, Israel's fiscal and debt metrics have improved rapidly after the pandemic-induced temporary shock, with the public debt-to-GDP ratio declining by ten percentage points of GDP within two years to 60.7% of GDP in 2022. Last year, the government recorded a budgetary surplus of around 0.6% of GDP, helped by strong revenue growth and contained expenditure growth as most pandemic-related spending ended.”

In addition, Moody’s changed the government of Israel’s outlook to ‘stable’ from ‘positive’. The change in outlook is a result of recent events surrounding the country’s proposal to change the country’s judiciary.

(*Israel bonds are not rated.)

Fitch* affirms Israel’s A+ rating with 'stable' outlook

On March 1, 2023, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, highlighting the country’s “diversified, resilient and high-value added economy” in its latest report. The agency went on to note that maintaining Israel’s credit rating was also supported by “strong external finances against a high government debt/GDP ratio, elevated security risks, and a record of unstable governments that has hindered policymaking.”

Fitch expects Israel’s economy to grow at rate of 2.9% in 2023, despite global challenges and monetary policy tightening that will curtail private consumption and investment, and anticipates the economy will return to growth above 3% in 2024 and 2025 backed by exports from the high tech and the defense industries, strong population growth and increased government spending.

(*Israel bonds are not rated.)

S&P* reaffirms Israel’s AA- rating, praising its "wealthy, resilient" economy

Standard & Poor's (S&P) has kept Israel’s favorable rating* unchanged at AA- with a “stable” outlook, in its latest analysis. The global credit rating agency forecast Israel’s economic growth to increase by 6% this year, with key expenditure components such as consumption, investment, and exports set to expand. S&P praised Israel’s “wealthy and resilient economy,” noting positive recent developments such as the signing of the Abraham Accords that normalized ties and grew economic relations between Israel, the United Arab Emirates, Bahrain, and Morocco, and the maritime border deal with Lebanon, The Times of Israel reported on November 15, 2022. (*Israel bonds are not rated.)

Fitch affirms Israel’s A+ rating with 'stable' outlook

On August 1, 2022, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, noting the country’s economic resilience and an expected reduction of the fiscal deficit of 4.9% by the end of this year from 2021. Fitch also stated “Israel's 'A+' rating balances a diversified, resilient and high value-added economy, strong external finances and solid institutional strength,” adding “Israel's reliance on domestic gas production provides some insulation from the global commodity price shock and demand for its export products remains strong.” Additionally, Fitch noted investment in the high-tech sector to remain robust, highlighting, “We project foreign exchange reserves to reach USD215 billion at end-2022… and Israel's net external creditor position to continue to improve to about 49% of GDP.”

(*Israel bonds are not rated.)

Standard & Poor's (S&P) affirms Israel’s AA- rating, citing resilient economy despite security risks

Standard and Poor’s (S&P*), global credit rating agency, has kept Israel’s favorable rating unchanged at AA- with a “stable” outlook, the Finance Ministry stated May 14, 2022, citing the company’s announcement released on May 12. S&P said it expects the Israeli economy to grow at a rate of 5.5% in 2022, following growth of over 8% in 2021, which surpassed forecasts and marked the highest financial growth rate recorded in Israel in 21 years, according to data published in February 2022 by the Central Bureau of Statistics.

The agency cited Israel’s strong economic performance in the past year, a robust economy, and fiscal outturns that helped “net general government debt fall below its pre-pandemic level more quickly,” it highlighted in the announcement. S&P noted Israel’s positive fiscal performance and a strong tech sector, which make up a resilient economy.

(*Israel bonds are not rated.)

Fitch* affirms Israel’s A+ rating, citing strong 2021 economic performance

On February 16, 2022, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, noting the country’s strong economic performance and a reduction of the fiscal deficit in 2021. Fitch also stated Israel’s economy rebounded strongly “by about 6.5% in 2021 due to the removal of COVID-19-related restrictions and a strong rise in private consumption.” Additionally, on February 16 Israel’s Central Bureau of Statistics said Israel’s economy grew by 8.1% in 2021, surpassing previous forecasts and marking the highest financial growth rate recorded in Israel in 21 years. According to CBS data, the fourth fiscal quarter of 2021 saw a staggering 16.6% growth in GDP, bringing the yearly average to 8.1%, the highest since 2000, when Israel’s growth rate stood at 8.4%.

(*Israel bonds are not rated.)

Fitch* commends Israel’s budget approval, stating Israel’s financial position benefited this year from its strong economic rebound, the gradual removal of pandemic restrictions, and particularly strong fiscal revenues from the hi-tech sector

The ratings agency issued a statement on November 11, 2021, noting that the budget “reduces political uncertainty and potential risks to the public finances, affirming the government’s capacity to advance legislation... in line with our expectations when we affirmed the sovereign rating at ‘A+’ with a Stable Outlook in July 2021.” Israel also currently has a Stable AA- rating from S&P Global Ratings, and a Stable A1 rating from Moody’s. Take part in the 70-year legacy of achievement of Israel Bonds by investing online at

(*Israel bonds are not rated.)

Israel's economic resilience praised

Israel Bonds, founded 70 years ago to strengthen Israel’s economy, proudly notes the latest assessment of Israel from Fitch Ratings*, which, in its July 29, 2021 report, observed, “The economy has been more resilient to the pandemic shock than many rating peers, reflecting the strong performance of high-tech industries and the early and fast progress in vaccination.” The word “resilient” appears numerous times throughout the assessment, highlighting the fact that Israel’s economy is well-positioned to perpetuate its positive momentum. Become a stakeholder in Israel’s economy – invest online at

(*Israel bonds are not rated)

Moody’s affirms ‘stable’ outlook for Israel despite Hamas conflicts

In a May 19, 2021 report, Moody’s* affirmed Israel’s ‘stable’ outlook, stating, “Given the long-standing resilience of the Israeli economy to geopolitical developments, we expect the heightened conflict to have only a modest impact on the country’s economic recovery from the pandemic and on the government’s near-term fiscal metrics.” The report added, referencing Israel bonds, “Israel's deep and highly developed domestic market as well as exceptional access to external markets – also through an active diaspora bond programme – will support debt affordability.”

(*Israel bonds are not rated.)

Standard & Poor’s (S&P) affirms Israel’s ‘stable’ outlook and strong credit rating

In a May 14, 2021 report, Global ratings agency S&P* affirmed its long-term sovereign credit rating on Israel at “AA-/A-1+” and maintained its outlook at “stable,” despite security and political risks escalating sharply in the last few days. The report added, “The combination of a very effective and swift COVID-19 vaccination campaign, strong technology sector performance and rising gas exports should still underpin the country’s GDP growth of 5% in 2021.”

(*Israel bonds are not rated.)

Standard & Poor's (S&P) maintains Israel’s strong AA- credit rating, despite the global COVID-19 pandemic’s effects

Standard and Poor’s (S&P*), the global credit rating company, has kept Israel’s credit rating unchanged at its high AA- level with a stable outlook, despite the COVID-19 crisis that the country is experiencing, the company announced March 30, 2021.
The agency also said it expects growth to recover soon and lauded Israel for having sound debt policy, which it said continues to justify its rating of AA-/Stable/A-1+.

(*Israel bonds are not rated.)

Moody's affirms Israel's 'stable' outlook

In a December 4 overview of Israel's economy, Moody's* affirmed its 'stable' outlook, noting its assessment "reflects (Israel's) robust growth potential, strong external position and highly credible institutions, which will support the credit profile through the coronavirus shock." The report projected "a strong economic recovery in 2021."

(*Israel bonds are not rated.)

Standard & Poor's (S&P) affirms Israel's strong credit rating, despite the effects of the pandemic on its economy

In its assessment published on November 13, 2020, S&P*, provider of independent credit ratings, affirmed Israel’s position at a relatively high AA- rating, with a stable outlook, despite the major effects of the coronavirus pandemic on its economy. The agency cited Israel’s robust economy, flexible monetary policy, relatively strong pool of local savings, and access to domestic and international capital markets as reasons for its determination, as reported by The Times of Israel on November 14. The firm also noted the normalization agreements Israel signed with the United Arab Emirates and Bahrain, which it said could lead to economic cooperation, increased commerce and better security for the three countries.

(*Israel bonds are not rated)

Moody's affirms Israel's 'A1' rating, revises outlook to 'stable', references "exceptional access to external funding", which includes Israel bonds

While many economies are being downgraded, Moody's* expressed confidence in Israel, stating, "The affirmation of the A1 rating reflects Israel's robust medium-term growth potential, strong external position and highly credible institutions, which Moody's expects will help its credit profile to withstand the impact of the severe but temporary crisis arising from the coronavirus outbreak." In the April 24, 2020 assessment, Moody's also observed, "Israel's economy has demonstrated resilience to a range of domestic and external shocks, supported by its highly competitive tech sector which benefits from the country's strong capacity for innovation, while the start of production from the Leviathan gas fields at the end of 2019 will, over time, further enhance the country's already favorable external position." A particular point of pride is Moody's reference to "exceptional access to external funding," which includes Israel bonds.

(*Israel bonds are not rated).

Fitch affirms Israel at 'A+' with an outlook of ‘stable,’ citing, among other factors, "an active Diaspora bond program (Israel Bonds)"

As countries grapple with economic repercussions from the coronavirus pandemic, Israel remains well-positioned to stabilize its economy. According to an April 23, 2020 assessment from global ratings agency Fitch*, “We project a rebound in 2021, with GDP growing by 5%.” In observing that “features of public debt are largely favorable,” Fitch cited, among other factors, “an active Diaspora bond program (Israel Bonds)” in affirming its long-term foreign currency issuer default rating at 'A+' with an outlook of ‘stable.’ The Bonds legacy of partnership was recently reiterated through its commitment to the Finance Ministry to help strengthen the economy in this challenging time.

(*Israel bonds are not rated).

Israel joins the FTSE World Government Bond Index (WGBI)

Following its credit upgrade last year by S&P, and after a decade of financial improvement and fiscal prudence, on September 26, 2019, FTSE Russell announced the inclusion of Israel's local currency, fixed-rate debt to the WGBI list of index countries. The highly-followed WGBI, in existence for more than 30 years, tracks the performance of fixed-rate, local currency, investment-grade sovereign bonds from more than 20 countries and covers more than $20 trillion of debt. Israel’s Accountant General Rony Hizkiyahu stated, “Israel's inclusion into this prestigious index is a testament to the strength and stability of the capital markets in Israel and the optimal debt management polices over the years,” according to the FTSE WGBI press release.

(*Israel bonds are not rated).

Israel's economy grew 3.6% in the first half of 2019

Israel’s economy rose by 3.6% in the first half of 2019, according to Israel's Central Bureau of Statistics’ second estimate of national accounts data. The half yearly growth figure, a strong indicator of the Jewish state's economy, compares with 2.8% in the second half of 2018 and 3.5% in the first half of 2018, Globes reported on September 16, 2019.

Fitch affirms Israel at 'A+' with an outlook of ‘stable’

Fitch Ratings affirmed Israel’s long-term foreign currency issuer default rating* at ‘A+’ with an outlook of ‘stable’ on August 29, 2019. Fitch underscored that, “Israel benefits from high financing flexibility, having deep and liquid local markets, good access to international capital markets, an active diaspora bond program (italics added), and US government guarantees in the event of market disruption.” The Bonds organization is exceptionally proud to acknowledge Fitch’s reference to “an active diaspora bond program” factoring into its assessment. Bonds President & CEO Israel Maimon stated, “Our unwavering mission to elevate the Bonds enterprise and strengthen Israel’s economy continues to be recognized, and our leadership and staff remain truly grateful to be a part of this achievement, in which the organization to date has provided Israel with over $43 billion in global sales.”

(*Israel bonds are not rated).

Standard & Poor’s affirms Israel’s AA- credit rating with a stable outlook, calling the nation's economy “diversified, competitive, and resilient”

Standard & Poor’s (S&P) reaffirmed Israel’s credit rating at AA- with a stable outlook, according to reports by Calcalist published on August 2, 2019. S&P noted the nation’s historically low unemployment rates and continuously growing economy, calling it “diversified, competitive, and resilient,” predicting it will increase even more annually by 3% on average until 2022. The country has not faced recession in the last 15 years, the report went on to say, and its gross domestic product (GDP) has increased by 60% since 2010.

(*Israel bonds are not rated).

Israeli high-tech companies raise record amount in first half of 2019

In an all-time high, Israeli high-tech companies raised $3.9 billion in the first half of 2019 with 254 deals. Continuing the success, IVC Research Center findings showed a record-setting second quarter achievement of $2.32 billion, boosted by 10 mega-deals. Adv. Shmulik Zysman, managing partner & high-tech industry leader ZAG/Sullivan stated, “Just when we thought the investment growth in the first quarter of 2019 had broken every record, along came the second quarter and registered the most significant leap in the total amount raised in the last six years,” The Jerusalem Post reported on July 18, 2019.

Israeli-founded companies are making a substantial impact on New York’s economy

New York-Israel Business Alliance noted that Israeli-founded companies are making a substantial impact on New York’s economy – driving $18.6 billion in revenue last year alone. Factoring in spending on local goods and services, the benefit to New York is estimated at $33.8 billion, representing 2.02 percent of the state’s GDP. Between 2014-2016, Israeli companies secured $3.5 billion in venture capital funding and were responsible for more than 20 percent of the total capital raised in New York State in 2016. These Israeli-based companies, over 500 according to the data, employ nearly 25,000 New Yorkers and indirectly employ over 25,000 more when accounting for additional demand for local goods and service. “New York has become the hub where Israelis are transforming Start Up Nation into Scale-Up Nation,” New York-Israel Business Alliance founder Aaron Kaplowitz tells NoCamels reported on July 25, 2019.

Israel’s economy expanded at its fastest pace since 2016

Bloomberg reported on May 17, 2019 that Israel’s economy expanded at its fastest pace in three years last quarter, far exceeding all analyst forecasts. GDP rose 5.2% from the previous quarter, surpassing every estimate in Bloomberg’s survey of six economists, whose median was 3.1%. “The breakdown was very positive, so you’re running on all pistons,” said Leader Capital Markets Ltd. economist Jonathan Katz. “The Bank of Israel will now have to say that in Israel there are signs of growth above potential.”

Candy giant Mars and Jerusalem Venture Partners are teaming up to build a food tech research hub In Israel

Mars, the $35 billion maker of M&Ms, Snickers and Iams pet food, and Jerusalem Venture Partners are creating a research and development center in Israel dedicated to scaling and commercializing tech solutions that touch any aspect of the global food system, from farming to nutrition. The research center – the first Mars has opened in Israel - will give funds to Israeli startups and work with academic researchers at institutions, such as the Hebrew University, the Weizmann Institute, the Technion, Migal and Tel Hai College, Forbes reported on May 15, 2019.

Fitch affirms Israel at 'A+' with an outlook of 'stable'

Fitch Ratings affirmed Israel's long-term foreign currency issuer default rating* at 'A+' with an outlook of ‘stable’ on March 25, 2019. The Bonds organization takes special pride in Fitch’s reference to “an active diaspora bond program” factoring into its assessment. Bonds President & CEO Israel Maimon said, “Our dedicated leadership and staff at every level are gratified to be a part of Israel’s economic resilience, and we will continue to build on a legacy that, since 1951, has provided Israel with over $42 billion in worldwide sales.”

(*Israel bonds are not rated).

Standard & Poor’s affirmed Israel’s AA- credit rating -- the highest rating the Jewish state has ever received

The credit scoring agency cites the nation’s prosperous and diverse economy, external balance sheet and flexible monetary policy framework as reasons for the confirmation, reported by The Jerusalem Post on February 4, 2019. Prime Minister Benjamin Netanyahu hailed "another achievement for the Israeli economy," following S&P's affirmation of the credit rating first received in August 2018 as a "very strong expression of confidence" in the country. Finance Minister Moshe Kahlon called the announcement "further proof of the strength of the Israeli economy and its global status."

(Israel bonds are not rated)

Amazon finalized deal to buy Israeli startup CloudEndure for $200 million

CloudEndure, which provides business continuity software solutions for disaster recovery, is not the first or the biggest Israeli acquisition by the e-commerce giant. In 2015, Amazon acquired Annapurna Labs for $360 million, which became the center for developing chips used by Amazon Web Services, its cloud-computing unit. Additionally, Amazon also has a smaller research and development unit in Israel working on its cashierless supermarkets, as well as another group working on computer vision for smart speakers. This most recent deal in Amazon’s storied past with Israel has been finalized in January 2019 and is expected to be promptly announced, according to Haaretz.

U.S.-Israel fund to invest $7.3 million in new joint innovation projects

The Israel-U.S. Binational Industrial Research and Development (BIRD) Foundation approved funding of eight new projects in January 2019 to be jointly developed by U.S. and Israeli companies, according to The Times of Israel. New investments will include educational and agricultural technology, energy, digital health, medical devices, and homeland security. “It’s satisfying to see how varied are the projects submitted to the BIRD Foundation with diversity in sectors, size of U.S. companies and their geographical location, enhancing BIRD’s impact, for mutual benefit of the U.S. and Israel,” said Phillip Singerman, associate director for Innovation and Industry Services at the U.S. National Institute of Standards and Technology and co-chairman of BIRD’s board of governors, following the announcement.

Israel is outperforming Europe and the OECD with accelerating growth

The nation's gross domestic product has been rising at an average annual rate of 3.69 percent since 2000, inflation has been negligible at 1.57 percent, and unemployment has fallen to half of its average for the period of 7.4 percent.

With a population of 8.4 million people, the Jewish state has outperformed its European counterparts. Israel’s GDP growth of 69 percent, since being upgraded to developed-market status in 2009, is more than 17 times what Austria accomplished and almost three times what Switzerland achieved, according to data compiled by Bloomberg and highlighted in an op-ed entitled 'Israel’s Economy Is Too Strong to Argue About' on January 24, 2019.

Israel ranked as world’s fifth-most innovative economy in the 2019 Bloomberg Innovation Index

The Jewish state moved up five spots from last year and surpassed Singapore, Sweden and Japan in the process. After the index was published on January 22, 2019, Israeli Prime Minister Benjamin Netanyahu tweeted, "Israel is a rising global power!"

Israel's record shattering 2018 in investment capital, acquisitions, and exports

Its game-changing tech sector continued to transform the world. International excitement over Startup Nation can be gauged by the fact that Israeli companies raised nearly $6.5 billion in investment capital in 2018, establishing a new record, as stated in Globes (January 1, 2019). Moreover, four of the 15 largest acquisitions in Israel’s history were made last year. Technology also played a key part in a year in which exports totaled $110 billion, yet another record noted in Israel Hayom (December 31, 2018).

Additionally, as reported in CTECH by Calcalist (January 1, 2019), Israel’s 2018 GDP growth is expected to average 3.2 percent, and, while somewhat lower than 2017, this still ranks first among all OECD countries. It is a significant accomplishment that, at one time, would have seemed inconceivable.

All this, and so much more, springs forth from a land, that according to a survey published last year, ranked 100 on a list of the world’s 100 most populous countries.

Israel's startups have raised over $4 billion in the first eight months of 2018, well on course to beat last year's record of $5.24 billion

The country's startups raised nearly $300 million in August and an estimated $650 million in July, according to IVC-ZAG. This sum can be added to the more than $3.1 billion that Israeli startups raised in the first half of 2018, on track to beat last year's record, as reported by Globes.

Israel gets NIS 17.6 trillion valuation

The State of Israel is officially worth more than 17 trillion shekels or NIS 17,638,763,277,054 to be precise, Finance Minister Moshe Kahlon revealed on August 14, 2018, as he opened trading on the Tel Aviv Stock Exchange (TASE).

Israeli high-tech firms raised $1.61B in Q2/2018

July continued the strong fundraising trend of the three previous months in #Israel, led by $125 million for retail-tech company Trax Image Recognition, following on the heels of an IVC Research Center report revealing that Israeli high-tech companies raised $1.61 billion in 170 deals in Q2 of 2018.

Standard & Poor's gives Israel its highest-ever rating

The ratings agency cites steady growth, improved fiscal outlook in decision to upgrade Jewish state's credit score to AA- according to The Times of Israel (August 2018). Prime Minister Benjamin Netanyahu hailed the upgraded rating as "a reflection of the strength of the Israeli economy." In a statement after S&P announced the move, Finance Minister Moshe Kahlon said, "In the last three years, the Israeli economy has soared to the best macro data in its history. The confidence expressed in us by the strongest economic bodies in the world enables us to continue to grow the economy." (Israel bonds are not rated)

Moody's raises rating outlook for Israel

Moody's has joined Standard & Poor's (S&P) in raising its rating outlook for Israel from 'stable' to 'positive.' According to Globes, Moody's states the change means that there is a good chance that Israel's rating will be upgraded in the next 12-18 months, for the first time since 2008. If the raised outlook does result in an upgrade, the rating, currently at A1, will rise to Aa-, the article went on to read. Minister of Finance Moshe Kahlon said, "The rating outlook upgrade is further evidence of the strength and stability of the Israeli economy. All the data indicate that the economic policy that we are pursuing, including a free and responsible economy alongside strengthening the middle class and poorer sections of society, is the right way." (Israel bonds are not rated)

Israel first-quarter 2018 GDP revised up to annualized 4.5 percent growth, reported by Reuters

This growth, faster than previously forecasted, was boosted by gains in consumer spending, investment and export, the Central Bureau of Statistics said in a second estimate.


Life Sciences industry in Israel soars

A comprehensive report by Israel Advanced Technology Industries and PwC on the life sciences industry in Israel has shown dramatic growth. The sector currently has 1,450 active companies compared to 800-900 five years ago. A record $1.2 billion was raised in 2017 from local and foreign funds, public offerings, investments by private equity funds, and support from the Israel Innovation Authority. The capital raising was 40 percent higher than in 2016 and 400 percent more than a decade ago. According to the report, $656 million was raised in rounds of more than $20 million last year, compared to $452 million in 2016.

This increase was significant because larger financing rounds enable drug companies to conduct advanced clinical trials and companies with less complex medical devices to build marketing apparatuses.


Volkswagen opens Tel Aviv Innovation Center

German carmaker Volkswagen (VW) opened a Tel Aviv innovation center to promote the development of autonomous vehicles, new mobility services, and tailor-made solutions. The VW campus will be a co-working space called Konnect, and will provide local partners and mobility-based startups direct access to the Volkswagen group for business collaborations as well as support in mentoring and consulting. Volkswagen Group chief customer officer Peter Harris remarked, “I am a strong believer in the technological innovations being developed within the Israeli market and I am convinced that they can help us reach our goal of being one of the global market leaders in sustainable mobility. Konnect is another step in expanding our activities in Israel and will help our portfolio of brands engage with the Israeli start-up ecosystem.”


Israel officially surpassed Japan in gross domestic product (GDP) per capita, Prime Minister Benjamin Netanyahu reported in June 2018

Israel enjoys GDP per capita of $42,120 – which is calculated by dividing the country’s total economic output by its number of people. In contrast, Japan’s GDP per capita is $40,850.

The prime minister added that unemployment was at an all-time low, or at 3.7% in February 2018. Many economists deem it a state of “full employment” – when the economy is such that all eligible people who want jobs can get one.

Israel’s economy marked another unusually strong quarter of growth in the first three months of 2018 as consumer spending, imports and investment soared, according to the Israeli paper Haaretz

Gross domestic product grew an annualized 4.2% rate in the January-March period, the Central Bureau of Statistics reported on May 16 in a preliminary estimate. That was well ahead of the 3.9% average pace forecast in a Reuters poll of economists and marked the third straight quarter of expansion in excess of 4%.

Moreover, the CBS revised up its fourth-quarter gross domestic product growth estimate to an annualized 4.4% from 4.1%.

Intel submitted detailed plan for $5 billion plant expansion in Israel

The plan, submitted in May, involves a major overhaul of the chip manufacturer's Fab 28 plant in the town of Kiryat Gat. Intel said it was responsible for $3.6 billion of Israel’s exports in 2017, which represents about 8% of the country’s total tech exports. The company also said its plants have produced $50 billion worth of goods throughout their entire lifetime. Local investments and acquisitions have totaled $35 billion. “Intel and Israel are a wonderful story of a partnership that started in 1974,” Intel’s top executive in the country, Yaniv Garty, said in a statement.

A report from the International Monetary Fund (May 2018) confirms strong economic growth for Israel

The IMF praised the nation’s solid job market, government investment in infrastructure, and Israel's strong economic growth. According to the report, the Israeli economy grew by 3.4% over the course of 2017, led by local demand and improved global economic growth. In recent years, unemployment has dropped steadily and at the beginning of 2018 dropped below 4%, which supported an average rise in salaries of 3.3% across the board.

The Israel Export Institute and the Economy and Industry Ministry announced in May that the rapid growth that characterized Israeli exports in 2017 is continuing in 2018

In the first quarter of 2018, exports of goods except diamonds rose by 6.5% from the same period in 2017, reaching $12.6 billion. Total exports of goods including diamonds totaled $14.5 billion in the first quarter, an increase of 1.6% from the previous year.

In a statement issued April 17, 2018, credit rating agency Fitch Ratings has affirmed Israel’s grade of ‘A+' with a stable outlook

“Israel benefits from high financing flexibility, has deep and liquid local markets, good access to international capital markets, an active Diaspora bond program [emphasis added], and US government guarantees in the event of market disruption,” the agency noted.  Israel’s economy was also acknowledged in the report as having a “robust macroeconomic performance and solid institutional strength” and was recognized as being “diverse and advanced” due to its “well-developed institutions and education system.”

The Bonds organization is proud to be a vital partner in the fortification of Israel’s economy and is appreciative of all Israel bond investors for helping to reach this accomplishment. (Israel bonds are not rated).

A $15 billion deal in 2018 to export Israeli gas to Egypt brings the formerly resource-poor Jewish state a step closer to becoming an energy exporter to the most populous Arab country

The contract will “position Israel as a central player in the regional energy sector,” remarked Israel Energy Minister Yuval Steinitz.

Intel to invest $4.5 billion in Israel in 2018

"Intel has decided to invest billions of dollars in Israel in 2018," Minister of Finance Moshe Kahlon told the Knesset Finance Committee Sunday. Intel previously invested $6 billion in 2016 and 2017 to expand and upgrade its plant in Kiryat Gat, making it one of the world's most advanced chip fabs.

Standard & Poor’s (S&P) holds Israel’s rating at investment grade, with a positive outlook

S&P, the provider of independent credit ratings, issued a report in February 2018 reaffirming Israel’s credit rating at third-highest investment grade with a positive outlook, stating it expects Israel’s economy to remain strong. “The ratings are supported by Israel’s prosperous and diverse economy, strong external balance sheet, and flexible monetary framework,” S&P highlighted in the report. (Israel bonds are not rated).

Israeli exports for 2017 expected to pass $100 billion for the first time

A preliminary report on Israeli export activity for 2017 shows a 5% rise in total exports of goods and services, with a 3% boost in industrial exports, a 2% jump in agricultural exports, a 7% increase in export of high-tech services and a 20% improvement in Israeli exports to the European Union.

Israel signs first-of-its-kind agreement with Japan to facilitate Japanese investments in Israeli companies

In December 2017, a delegation headed by Israel’s Minister of Economy Eli Cohen and eleven Israeli cyber firms reached a deal which aims at increasing bilateral trade between the two countries, allowing Israeli advanced manufacturing companies to work with companies from Japan, a nation home to the world’s third largest economy.

DowDuPont, conglomerate of two major U.S. corporations formed in 2017, expanded operations in Israel in the same year

"Israel is one of the economies with the swiftest growth in the world and many of Israel's companies are leaders in technologies and services that will help companies and communities to prosper worldwide," said Dow Chemical Co. EVP and president of Dow Europe, Middle East, Africa & India, Heinz Haller at a ceremony in Tel Aviv in October 2017.

Intel has completed the first stage of the $15.3 billion purchase of Mobileye, an Israeli technology company that specializes in producing sensors and cameras for autonomous cars, as of August 2017

The acquisition is expected to accelerate innovation for the automotive industry and positions the global microchip giant as a leading technology provider in the fast-growing market for highly and fully autonomous vehicles.

BlackRock, Inc., an American global investment management corporation based in New York City which oversees $5.4 trillion in assets, opened its first office in Israel in 2017, tapping into the country’s engineers and programmers to help improve the firm’s global platform in a changing asset-management indus­try.

Israeli high-tech companies closed 104 deals in 2016 worth $10 billion, up 12% from 2015, according to the IVC - Meitar High-Tech Exits Report

The figure includes 93 mergers and acquisitions worth nearly $8.8 billion, including the $4.4 billion Playtika acquisition, eight buyouts that generated $1.22 billion and three small IPOs totaling $15.1 million.

With a growth rate standing at 1.8 percent, the highest in the Organization for Economic Cooperation and Development, Israel’s population topped 8.7 million on Erev Rosh Hashanah 5777

Israel’s birth rate was 3.11% on the year, with 181,405 babies being born, and the country saw 27,000 people move to Israel over the last year of whom 25,000 were new immigrants.

In a statement issued August 4, 2017, credit rating firm Standard & Poor’s raised the outlook on Israel’s debt profile to 'positive' from 'stable', and held Israel's debt rating stable at A+, which means it could raise the grade a notch in the next two years

"The rating action reflects our opinion that Israel's improved fiscal framework and strong economic growth could enable further progress on fiscal consolidation over the next few years," the agency remarked.

The Bonds organization takes pride in the role it has played in strengthening Israel’s economy and thanks every Israel bond investor for helping to make this achievement possible (Israel bonds are not rated).

View the most recent Government of Israel Ministry of Finance Office of the Accountant General Investor Newsletter here

(The information contained herein has not been approved by Israel Bonds nor does Israel Bonds make any representations as to its accuracy. Israel Bonds is not acting as underwriters, advisors or consultants to the entities referenced herein and has not done any analysis of their financial conditions or prospects. We encourage you to engage your lawyers, accountants and business advisors before you make any investments.)