Israel Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in israel, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Top five reasons why U.S. companies should consider exporting to Israel:

  • U.S.-Israel Free Trade Agreement (FTA), signed in 1985. Nearly all non-agricultural trade tariffs have been eliminated;
  • The U.S. is Israel’s single largest trading partner. The Israeli market is highly receptive to U.S. products and services;
  • Israel is the second largest trading partner for the U.S. in the Middle East;
  • Despite regional geopolitical challenges, Israel has a stable, strong economy;
  • Israel has a thriving innovation ecosystem and is a global leader in the number of startups outside of Silicon Valley.

Since signing the FTA in 1985, U.S.-Israel trade has grown ten-fold. In 2022, exports of U.S. goods and services combined to Israel were $20.8 billion, compared to $18.2 billion in 2021. In 2022, U.S. merchandise exports to Israel totaled $14.2 billion, an 11% increase over that figure in 2021. Principal categories of U.S. merchandise exports to Israel in 2022 were: 

  • Miscellaneous Manufactures (29.5%);
  • Computer & Electronic Products (21%);
  • Transportation Equipment (10.7%);
  • Chemicals (9.5%); and
  • Machinery, Except Electrical (7%)

In 2022, U.S. imports of goods and services from Israel were $30.8 billion, up 16.6% from 2021. In 2022, U.S. imports of merchandise from Israel totaled $21.5 billion, a 16% increase over that figure in 2021. Principal categories of merchandise imports from Israel to the United States in 2022 were:

  • Miscellaneous Manufactured Commodities (35.8%);
  • Computer & Electronic Products (20.6%)
  • Chemicals (12.5%); and
  • Machinery, Except Electrical (6.9%)

According to the International Monetary Fund, Israel’s 2022 real Gross Domestic Product (GDP) increased by 6.5% over 2021. GDP per Capita measured at Purchasing Power Parity (PPP) increased from $44,052 in 2021 to $49,507 in 2022 and Israel’s 2022 inflation rate increased to 4.4% from 1.5% in 2021. Israel’s 2022 unemployment rate was 3.8%, compared to 4.96% in 2021. In 2021, Foreign Direct Investment (FDI) in the United States by Israel totaled $27.7 billion, and U.S. FDI in Israel totaled $41.3 billion.

Political Environment

Visit State Department’s website for background on the country’s political and economic environment.