Israel is located in the Middle East and is spread across the south eastern shore of the Mediterranean Sea and the northern coast of the Red Sea. It shares its borders with Syria on the northeast axis and Lebanon, Jordan and Palestine on the north, east and west respectively.

Israel’s economy is technologically advanced, placing Israel among the top 18 nations in the world on the United Nations Development Index. This country is dominated by industrial and technological estates and scientific research centers, and serves as a research facility for science students as well as government agencies.

Today, Israel is at the same level as countries such as China, Australia, the USA, India and Europe in terms of scientific and technological advancements and industrial development.

These dynamic achievements began in the 9th century in small workshops that were used to manufacture farm tools used for cultivating agricultural products. The main contributing factor that helped turn traditional Jewish science and technology into something more modern was the influx of many entrepreneurs from neighboring countries such as Syria, Lebanon, Jordan, and Palestine.

Another factor was the availability of experienced German engineers in the 1930s as well as the increasing demand for industrial products during World War II (1939-1945).

The first technological advancements of Israel began in the 1970s with food, textiles, fashion, furniture, fertilizers, pesticides, pharmaceuticals, chemicals, rubber, plastic and metal products being manufactured. The second phase commenced in the 1980s with the manufacturing of arms in order to defend the country.

Israel’s economy began to slip towards recession due to the political imbroglio that broke out between the country and its diplomatic allies, as well as the regional crisis which crippled the prospect of economic growth.

During the 2009 Presidential elections, the Israeli economy was reeling from the recession. Israel’s Labor Party Chairman, Ehud Barak, told the press how he would fix the economy if elected Prime Minister, by calling for negotiations with Palestine and breaking free of the diplomatic stalemate.

He proposed a plan to be submitted for comprehensive regional peace with a strong economic footing.

One thought on “The State of Israel’s Economy

Leave a Reply

Your email address will not be published. Required fields are marked *