Israel's economy expanded by 6.5% in 2022

The Israel Bureau of Statistics published its annual report on Israel's economy. The country's GDP rose by 6.5%, after last year's even more impressive rise of 8.6% followed a 1.9% decrease caused by the COVID-19 crisis.

GDP per capita rose by 4.4% compared to 2021, while the population in Israel increased by 2% in the same time frame, according to the report.

The GDP per capita in 2022 amounted to NIS 3,184, at current prices. For comparison, the OECD forecast predicted the average increase of GDP per capita at only 2.6% for its member countries.

Private consumption expenditure increased by 7.5% and private consumption expenditure per capita saw a 5.5% increase, while spending for public consumption rose only by 0.6%.

Investments in fixed assets rose by 3.9%. The increase in the export of goods and services was measured at 7.9%, while the import of goods and services saw an increase of 11.2%.

The product of the public and community services industry, estimated based on salary payments in the government, local authorities and non-profit institutions (most of which are financed by the government) increased in 2022 by 2.7% after an increase of 5.1% last year.

The business product at basic prices (equal to the domestic product, at market prices, minus the taxes paid on products plus subsidies on the products received by the manufacturers) increased in 2022 by 7.3%.

Import of goods and services

The import of goods and services increased in 2022 by 11.2%, after rising by 20.6% in 2021.

The import of services increased by 24.9%. The increase in the import of services reflects a 14.3% rise in the import of services with the exception of Tourism.

Import of tourism services saw a sharp rise of 123%, after the sector was severely affected by the Covid-19 crisis in 2022. This follows the increase of 74.4% in 2021, but its level is still lower than the level of the import of tourism services was in 2019.

Imports of civilian goods increased by 6.2% and defense imports increased by 7.5%. Imports of goods and services excluding defense imports, ships, planes and diamonds increased in 2022 by 11.6%.

The total resources available to the economy from domestic production and imports increased in 2022 by 7.4% after rising by 10.9% in 2021.

Export of goods and services

Exports of goods and services increased this year by 7.9%, compared to an increase of 14.6% in 2021.

Industrial exports (excluding diamonds) increased this year by 4.3% following an increase of 7.5% last year.

The export of services increased by 13.1% while the revenues from the export of tourism services, which began to recover from the Covid-19 crisis, increased significantly but are still significantly lower than before.

The export of services excluding tourism and start-up companies, which mainly includes software and research services, increased by 9.0.