By any metric, the year 2020 the year of the coronavirus pandemic was odd. It was the worst year for the Israeli economy in terms of GDP and growth in its 73 years of independence. According to the Israel Central Bureau of Statistics, the gross domestic product in 2020 will decline by 2.6 percent in real terms compared to 2019.
Despite this, the last year has highlighted Israel’s economic resilience in comparison to other leading economies, which have been hit far worse by the economic crisis. While the Israeli economy shrank at a relatively mild rate, owing to the increasing scope of high-tech exports, the US economy shrank at a rate of 3.5 percent, while Germany and Japan each contracted by 5%. Meanwhile, France’s economy contracted by 8%, Italy’s by 9%, the UK’s by 10%, and Spain’s by about 11%.
As a result, Israel has climbed into the enviable club of the world’s top 20 economies, with a per capita GDP of $43.7 thousand (USD) for the last year, putting it in 19th place on the list, according to data from the International Monetary Fund.
GDP per capita growth data an economic barometer of a country’s wealth actually underscores Israel’s excellent accomplishment in this difficult last year, and it’s leapfrogging to the top of the world’s richest nations list.
In this regard, Israel’s wealth per citizen is currently around $44,000, which is higher than some of the world’s most advanced and developed economies, such as the United Kingdom (40.4 thousand dollars per person), Japan (40.1 thousand dollars per person), France (39.9 thousand dollars per person), South Korea (31.5 thousand dollars per person), Italy (31.3 thousand dollars per person), or Spain (31.3 thousand dollars per person) (27.1 thousand dollars per person).
With a GDP of 63.4 thousand USD per person, the United States remains higher on the list than Israel. However, the difference between the two economies has closed significantly in the last decade, with today’s rate hovering around 70%, a substantially better ratio than many developed economies. For example, South Korea’s and Italy’s per capita GDPs are less than half of that of the United States (49.7% and 49.3%, respectively), while Spain’s GDP is just 42.8 percent of that of the United States.
That isn’t the only staggering figure. In terms of GDP per capita, Israel is currently placed 21st, despite the fact that it was not even among the top 30 economies a decade ago. As previously stated, Israel entered the top 20 club of the world’s wealthiest economies for the first time this year, and made particularly strong progress from 32nd place in 2010.
But, despite the optimistic statistics, how is it that we don’t feel particularly wealthy? The issue of Israel’s cost of living has not been resolved in recent years, and in fact has increased, to the point where Israel remains one of the world’s most costly countries.
According to the Organization for Economic Cooperation and Development (OECD), prices in Israel are currently around 25% higher than the OECD average. So, while Israel ranks 19th in terms of per capita income, which is a respectable position, it only ranks 35th in terms of purchasing power parity (PPP), a metric that compares countries using a “basket of commodities.”
Despite this, Israel has able to improve on this front because to a faster growth rate, as seen by a two-place jump from last year, when it was placed 37th, and a seven-place jump in the list of world economies rankings from 2010, when it was 42nd.
What is Israel’s average GDP?
According to Trading Economics global macro models and analysts, Israel’s GDP per capita is anticipated to reach 34185.00 USD by the end of 2021. According to our econometric models, the Israel GDP per capita is expected to trend around 35766.00 USD in 2022.
Is Israel a prosperous nation?
Israel’s quality of living is substantially greater than that of all other countries in the region, is close to that of Western European countries, and is significantly higher than that of other developed countries. On the 2019 UN Human Development Index, Israel was placed 19th out of 189 countries, indicating “very high” development. The World Bank classifies it as a high-income country. In addition, Israel has an extremely long life expectancy at birth.
What accounts for Israel’s low GDP?
The only reason for Israel’s GDP to have decreased so little is because of exports. Exports declined sharply in most countries last year. Exports increased by 0.6 percent in Israel, which defies the global trend.
Why is Israel’s economy doing so well?
In terms of technological readiness, venture capital availability, and the quality of its research institutions, Israel consistently ranks first among the world’s economies. In terms of the availability of scientists and engineers, the number of start-ups per population, and venture capital investments per capita, the country comes in first.
Is Israel’s GDP satisfactory?
Israel is placed second among 14 Middle Eastern and North African countries, and its overall score is higher than the regional and global averages. From 2017 through 2019, the Israeli economy declined, turned negative in 2020, and then recovered in 2021.
What is Israel’s GDP forecast for 2022?
According to our econometric models, Israel’s GDP will trend around 410.00 USD billion in 2022 and 420.00 USD billion in 2023 in the long run. The gross domestic product (GDP) is a measure of a country’s economic output and income.
Is Israel more prosperous than Europe?
The report defines wealth as the net assets owned by households or individuals in financial instruments and real estate after debt is removed. Credit Suisse claims that there is more of it than ever before. Individual wealth, which includes savings, property, investments, and other components of net worth, has been consistently increasing over the past decade, despite governments’ struggles to pay bills and collect taxes. According to the report, global wealth reached $263 trillion in 2014, up 8.3% from the previous year and the fastest pace of growth since 2007.
According to the survey, an individual only needs $3,650 net to be included among the world’s wealthiest 50%, while a person would need $77,000 to be included among the top 10%. On these counts, Israelis readily qualify; the average Israeli adult is worth between $150,000 and $175,000, depending on exchange rates. In the Asia-Pacific/Middle East area, which includes China and Japan, this is the sixth highest level of wealth. Only Australia, Singapore, Japan, New Zealand, and Taiwan outperform Israel in this category. Israelis are also, on average, wealthier than Europeans. The average adult in Europe is valued $145,977. North America – the United States and Canada is the world’s wealthiest region, with an average adult having $340,000 in assets.
What is a reasonable wage in Israel?
According to the newly disclosed results of a poll conducted by the Central Bureau of Statistics, Israeli households earned an average before-tax income of 18,671 shekels ($4855) per month last year, and an after-tax income of 15,427 shekels ($4011).
What does Israel excel at producing?
The majority of Israel’s food is now produced domestically, with imports mostly consisting of grain, oilseeds, meat, coffee, cocoa, and sugar, which are all more than covered by agricultural exports. Dairy and poultry products account for the majority of farm output.