Economy of Pennsylvania

Bethlehem Steel's closed manufacturing facility in Bethlehem, Pennsylvania. This site later became a new multi-million dollar Sands Casino Resort in 2009.

Pennsylvania's 2008 total gross state product (GSP) of $553.3 billion ranks the state 6th in the nation. If Pennsylvania were an independent country, its economy would rank as the 18th largest in the world. On a per-capita basis, Pennsylvania's per-capita GSP of $35,641 ranks 26th among the 50 states.Philadelphia in the southeast corner, Pittsburgh in the southwest corner, Erie in the northwest corner, Scranton-Wilkes-Barre in the northeast corner, and Allentown-Bethlehem-Easton in the east central region are urban manufacturing centers. Much of the Commonwealth is rural; this dichotomy affects state politics as well as the state economy. Philadelphia is home to six Fortune 500 companies, with more located in suburbs like King of Prussia; it's a leader in the financial and insurance industry.

Pittsburgh is home to eight Fortune 500 companies, including U.S. Steel, PPG Industries, and H.J. Heinz. In all, Pennsylvania is home to fifty Fortune 500 companies.Erie is also home to GE Transportation Systems, which is the largest producer of train locomotives in the United States.

As in the US as a whole and in most states, the largest private employer in the Commonwealth is Wal-Mart, followed by the University of Pennsylvania.

As of January 2010, the state's unemployment rate is 8.8%.

Banking

The world-famous Crayola crayon company is based in Easton.

The first nationally chartered bank in the United States, the Bank of North America, was founded in 1781 in Philadelphia. After a series of mergers, the Bank of North America is part of Wachovia, which uses national charter 1. It is not known if the Bank of North America's charter will be retained after March 2010 when Wells Fargo, which acquired Wachovia in 2008, consolidates its own charter and Wachovia's under the name Wells Fargo, N.A.

Pennsylvania is also the home to the first nationally-chartered bank under the 1863 National Banking Act. That year, the Pittsburgh Savings & Trust Company received a national charter and renamed itself the First National Bank of Pittsburgh as part of the National Banking Act. That bank is still in existence today as PNC Financial Services, and remains based in Pittsburgh. PNC is the state's largest bank, and the fifth-largest in the United States.

Agriculture

Pennsylvania ranks 19th overall in agricultural production, but 1st in mushrooms, 3rd in Christmas trees and layer chickens, 4th in nursery and sod, milk, corn for silage, grapes grown (including juice grapes), and horses production. It also ranks 8th in the nation in Winemaking.

Gambling

Casino gambling was legalized in Pennsylvania in 2004. Currently, there are nine casinos across the state with three under construction or in planning. Only horse racing, slot machines, and electronic table games were legal in Pennsylvania, although a bill to legalize table games was being negotiated in the fall of 2009. Tables games such as poker, roulette, black jack and dice were finally approved by the state legislature in January 2010, being signed into law by the Governor on January 7. Sports betting is illegal.

Governor Ed Rendell has considered legalizing video poker machines in bars and private clubs, since an estimated 17,000 operate illegally across the state.Under this plan, any establishment with a liquor license would be allowed up to 5 machines. All machines would be connected to the state's computer system, like commercial casinos. The state would impose a 50% tax on net gambling revenues, after winning players have been paid, with the remaining 50% going to the establishment owners.

(source:wikipedia)

Israel Railways

Israel Railways
Locale	Israel
Dates of operation	1948–present
Track gauge	4 ft 8 1⁄2 in (1,435 mm)(standard gauge)
Length	1001 Km
Website	www.rail.co.il/en

An IC3 train in northern Tel Aviv on the Beersheba–Nahariya line

Israel Railways (Hebrew: רַכֶּבֶת יִשְׂרָאֵל‎‎, Rakevet Yisra'el) is Israel's government-owned national railway company and is responsible for all inter-city and suburban railway passenger and freight traffic in the country. All its lines are standard gauge. The network is centered in Israel's densely populated coastal plain from where lines radiate out from in many directions. Unlike road vehicles, Israeli trains run on the left side of the tracks.

Lines

Plans are to divide Israel Railways' passenger routes into eight operational lines:

Terminus (north) Intermediate stations Terminus (south) Major destinations

Nahariya Akko - Kiryat Motzkin - Kiryat Haim - Hutzot HaMifratz - Lev HaMifratz - Haifa Center - Haifa Bat Galim - Haifa Hof HaCarmel - Atlit - Binyamina - Tel Aviv University - Tel Aviv Savidor Central Railway Station - Tel Aviv HaShalom - Tel Aviv HaHagana - Lod - Kiryat Gat - Lehavim - Beersheba North Beersheba Center Nahariya - Akko - HaKrayot - Haifa - Atlit - Binyamina-Giv'at Ada / Or Akiva - Tel Aviv / Ramat Gan - Lod - Kiryat Gat - Lehavim / Rahat - Beersheba

Kiryat Motzkin Kiryat Haim - Hutzot HaMifratz - Lev HaMifratz - Haifa Center - Haifa Bat Galim Haifa Hof HaCarmel HaKrayot - Haifa

Binyamina Caesarea-Pardes Hanna - Hadera Ma'arav - Netanya - Beit Yehoshua - Herzliya - Tel Aviv University - Tel Aviv Savidor Central Railway Station - Tel Aviv HaShalom - Tel Aviv HaHagana - Kfar Habad - Lod - Be'er Ya'akov - Rehovot - Yavne - Ashdod Ashkelon Binyamina / Or Akiva - Caesarea Industrial Zone / Pardes Hanna-Karkur - Hadera - Beit Yehoshua / Even Yehuda - Herzliya - Tel Aviv / Ramat Gan - Kfar Habad - Lod - Be'er Ya'akov - Rehovot / Ness Ziona - Yavne - Ashdod - Ashkelon / Kfar Silver

Hod Hasharon Kfar Saba - Rosh HaAyin Tzafon - Petah Tikva Segula - Kiryat Arye - Bnei Brak - Tel Aviv University - Tel Aviv Savidor Central Railway Station - Tel Aviv HaShalom - Tel Aviv HaHagana - Lod Ganei Aviv - Lod Rishon LeZion HaRishonim Kfar Sava / Hod HaSharon - Rosh HaAyin / Neve Yerek - Petah Tikva - Bnei Brak / Ramat Gan - Tel Aviv - Lod - Rishon LeZion / Ness Ziona

Tel Aviv Savidor Central Railway Station Tel Aviv HaShalom - Tel Aviv HaHagana - Lod - Ramla - Beit Shemesh - Biblical Zoo Jerusalem Malha Tel Aviv / Ramat Gan - Lod - Ramla - Beit Shemesh - Jerusalem

Tel Aviv Savidor Central Railway Station Tel Aviv HaShalom - Tel Aviv HaHagana - Lod - Kiryat Gat - Lehavim Center - Beersheba North Beersheba Center Tel Aviv / Ramat Gan - Lod - Kiryat Gat - Lehavim / Rahat - Beersheba

Beersheba North Dimona Beersheba - Dimona

Tel Aviv Savidor Central Railway Station Ben Gurion Airport - Paatei Modi'in Modi'in Central Tel Aviv - Modi'in-Maccabim-Re'ut

Track

As of 2010, Israel Railways' network spans approximately 1000km with around 250km additional is or expected to be under construction in the early 2010 decade. The physical railway network includes a railway line extending north from Tel Aviv along the coast, reaching Haifa, the Kerayot, and Nahariya. Another goes south to Beersheba with a new spur from the Be'er Sheva North Station to Dimona, which opened on December 17, 2005. There are future plans to extend the Beersheba-Dimona line to the Red Sea port of Eilat.

Another line goes south to Ashkelon with a spur to Rishon LeZion. This line was extended from Ashdod to Ashkelon in April 2005. Another line goes East to Kfar Sava Nordau station with an extension to Hod HaSharon (Sokolov St) opening on 2 September 2006.

Service on the existing line to Jerusalem, which opened in 1892, was suspended in 1998 due to the poor state of the track. It was reopened in stages starting five years later, after extensive renovations. The section of this line to Beit Shemesh re-opened in September 2003, while the remainder of the upgraded line to Jerusalem opened in April 2005 together with the opening of the new Jerusalem Malha Station in Southern Jerusalem, instead of the original Khan Station. In October 2004, a new line was opened from Tel Aviv to the new Terminal 3 at Ben Gurion International Airport. The line was extended to Modi'in in September 2007. Another branch of this railway currently under construction will continue as a high-speed railway to Jerusalem. This difficult-to-construct line will be electrified and make extensive use of long railway tunnels in order for trains to achieve high speeds as they make their way from the coastal region to the mountainous Jerusalem area. In its first phase this line will terminate at a new underground station under construction underneath the Jerusalem Central Bus Station in central Jerusalem. There are future plans to extend the line from the Jerusalem Central Bus Station so that it will connect with the (now upgraded) historic railroad that already reaches Southern Jerusalem. The ride on the new high-speed line from Tel Aviv to Jerusalem Center will take approximately 30–40 minutes (compared to the current service which reaches the less-centrally located station in Southern Jerusalem in 95–100 minutes). The line is expected to be finished sometime around 2016.

Expansion plans

Initial plan (2003–2011)

Israel Railways' initial plan map

Approved long-term plans, including the follow-up plan

Israel Railways traces its roots to the railway lines built by the Ottoman and British authorities. For many years the system lay under-utilized and in disrepair. However, in recent years Israel Railways has undertaken an ambitious multi-billion shekel expansion program (the sum invested between 2003 and 2011 is equivalent to about USD $6.5 billion). This program calls for large sums to be invested in reviving abandoned railways, refurbishing and upgrading existing lines, and the construction of major brand new lines, as well as planning for the electrification of much of the system and the purchase of new rolling stock.

Besides the aforementioned high-speed Tel Aviv to Modi'in/Jerusalem line, other new lines are currently approved or under construction. One is the revival of the long-defunct Jezreel Valley line from Haifa to Beit She'an (originally a branch of the famed Hejaz railway) with a planned future connection across the Jordan River into Jordan. A new line is being constructed from Tel Aviv to Ashdod via the southern Tel Aviv suburbs of Holon, Bat Yam, Rishon LeZion and Yavne (west) as an extension of the existing Coastal railway line. Another new line is being built to connect Ashkelon with Be'er Sheva via the southern development towns in the western Negev (Netivot, Ofakim and Sderot). Work on a new line from Acre (Akko) to Karmiel, which includes a 5 km railway tunnel, is set to begin in 2011. Also, the existing congested line to Beersheba is currently undergoing upgrades to high-speed, dual-track configuration. Additionally, works currently underway will ensure that by 2013, all portions of the current rail network which serve passenger trains will consist of double track (except for the Na'an—Beit Shemesh—Jerusalem section of the existing line to Jerusalem).

Starting in the early 1990s, a considerable amount of new passenger rolling stock has been purchased with additional equipment on order. Since 2000, this includes the delivery of 6 control and 81 regular Siemens Viaggio Light cars (with a further 31 on order) and 146 new Bombardier Double-deck Coach cars (with 78 additional on order). Also, dozens of new locomotives and diesel multiple unit trainsets were purchased as well.

Follow-up plan

The next expansion plan of Israel Railways, which will take place starting in 2012, calls for several expansions and additions:

A new line from Acre to Kiryat Shmona via Karmiel (was originally planned to be completed in 2008, but met numerous obstacles and was postponed).

A new line from Beersheba to Arad, via Nevatim and Hura. This line is planned to connect to a future line to Eilat and the Dead Sea.

Reconstruction of the old eastern line, from Rosh HaAyin to eastern Hadera

A new line from Rosh HaAyin to Ariel

A new branch from the line to Kfar Sava, which will reach the Petah Tikva Central Bus Station, and connect to the Tel Aviv Light Rail

Electrification

Currently Israel Railways relies solely on diesel locomotives and DMUs. In the spring of 2010, the government of Israel voted to appropriate the sum of NIS11.2 Billion (US$3 billion) to implement the first phase of Israel Railways' electrification programme. This phase includes electrifying 420 km of railways using 25 kV 50Hz AC and the construction of 14 transformer stations, plus the purchase of electric rolling stock. At the time however, some of the statutory permitting process for this effort had yet to be completed and therefore it is uncertain when construction will begin. Currently the maximum speed on the national rail network is limited to 150 km/h (though this is expected to rise to 160 km/h by 2013); as part of the electrification project, portions of the network will be designed to allow operation at speeds of up to 200 km/h.

Proposed rail lines to the PA

Talks between Israel and the Palestinian Authority in 2004 have raised the possibility of reviving the old line from the Gaza Strip to Tulkarm and/or building a new line from Gaza to Tarkumia (near Hebron) with the aim of securely transporting people and goods between Gaza and the West Bank through Israeli territory as well as for transporting cargo to and from the Israeli port of Ashdod destined to the Palestinian Authority. Another proposed line would involve the revival of the old Hejaz railway branch from Afula to Jenin.

Old railway links to other countries

Originally part of the Palestine Railway, a line linked Al Qantarah El Sharqiyya north of the Suez Canal in Egypt, skirting the Mediterranean northward to the port of Tripoli, Lebanon. In 1912, the French had built an extension of the Baghdad Railway south from Aleppo, Syria, to connect at Tripoli, Lebanon. Expanded during World War II by both Australian and later New Zealand engineers, the effective footprint extended as far as Damascus.

For a railway both created and effected by the logistical need of military engineers supporting a various war efforts, on the establishment of the State of Israel in 1948 and the outbreak of hostilities during the Israeli War of Independence, those connections were severed and have yet to be restored.

Israeli forces bombed the rail bridge on the way to Lebanon, and the remnants of this line can be seen at Rosh HaNikra grottoes, where a virtual "train ride to peace" movie is shown inside the sealed tunnel that used to go into Lebanon. The tracks used to continue from Rosh HaNikra to Nahariya (the current northern end of the line) making it possible for one to travel from Lebanon all the way to Tel Aviv, Cairo, and beyond. Northerly, there was a route to Syria and connection via Chemins de Fer Syriens to Damascus.

Current railway links with adjacent countries

Lebanon – defunct

Syria – defunct (narrow gauge)

Jordan – proposed

Egypt – defunct

Passenger traffic

Tel Aviv HaShalom, one of the most recognizable railway stations in Israel

In the first years after the state's establishment in 1948, passenger traffic grew rapidly, reaching about 4.5 million passengers per annum during the early-to-mid 1960s, at which point traffic began to slacken due to improvements in the road infrastructure, increases in the automobile ownership rate, lack of investment in the rail network, and a continued favoring of public transportation using buses over trains. This trend reached a low point of about 2.5 million passengers in 1990, which on a per-capita basis represented about a 75% decrease from the heyday of the 1960s. The heavy investments in the rail infrastructure beginning in the early-to-mid 90s made train travel more appealing, especially given the ever-increasing road congestion, and consequently passenger use began rising rapidly—by a factor of about fivefold over any given ten year span, beginning in 1990, a trend which has been continuing to the present day. With several large-scale railway infrastructure projects still underway and more planned in the future, the growth in passenger numbers is expected to continue.

Statistics

Year Passengers (millions) Major events

1996 5.1

Opening of Tel Aviv HaShalom

1997 5.6

1998 6.4

Opening of Kfar Habad

Closing of the line from Tel Aviv to Jerusalem (via Beit Shemesh)

Opening of Be'er Ya'akov

1999 8.8

Opening of Haifa Hof HaCarmel

Completion of the Azrieli Center next to Tel Aviv HaShalom

2000 12.7

Opening of Be'er Sheva Center

Opening of Tel Aviv University, Bnei Brak, Petah Tikva Segula and Rosh HaAyin South

2001 15.1[2]

Opening of Caesarea-Pardes Hanna

Opening of Lev HaMifratz and Hutzot HaMifratz

2002 17.5

Re-opening of Acre

Opening of Tel Aviv HaHagana

2003 19.8

Re-opening of Beit Shemesh

Opening of Ramla

Opening of Rishon LeZion HaRishonim

Opening of the Kfar Sava line (Kfar Sava, Hod HaSharon, Rosh HaAyin North)

Opening of Ashdod Ad Halom

2004 22.9

Opening of Ben Gurion Airport

Opening of Herzliya

2005 26.8

Opening of Ashkelon

Re-opening of the Jerusalem line (Biblical Zoo and Jerusalem Malha)

2006 28.4

2007 31.8

Opening of Paatei Modi'in

2008 35.1

Opening of Modi'in Central, Lod Ganei Aviv and Kiryat Aryeh

2009 35.9

Israel Railways passenger stations

Name Hebrew City Lines

Acre עכו Acre Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Ashdod Ad Halom

Ashdod South אשדוד עד הלום

אשדוד דרום Ashdod Binyamina - Ashkelon

Ashkelon אשקלון Ashkelon Binyamina - Ashkelon

Atlit עתלית Atlit Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Be'er Sheva Center באר שבע מרכז Beersheba Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Be'er Sheva North

University באר שבע צפון

אוניברסיטה Beersheba Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Be'er Sheva North - Dimona

Be'er Ya'akov באר יעקב Be'er Ya'akov Binyamina - Ashkelon

Ben Gurion Airport נמל תעופה בן גוריון Ben Gurion International Airport Nahariya - Modi'in

Beit Shemesh בית שמש Beit Shemesh Tel Aviv Central - Jerusalem Malha

Beit Yehoshua בית יהושע Beit Yehoshua Binyamina - Ashkelon

Biblical Zoo גן החיות התנ"כי Jerusalem Tel Aviv Central - Jerusalem Malha

Binyamina בנימינה Binyamina-Giv'at Ada Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Bnei Brak בני ברק Bnei Brak / Ramat Gan Hod Hasharon Sokolov - HaRishonim

Caesarea-Pardes Hanna קיסריה-פרדס חנה Pardes Hanna-Karkur

Caesarea Industrial Zone Binyamina - Ashkelon

Dimona דימונה Dimona Be'er Sheva North - Dimona

Hadera West חדרה מערב Hadera Binyamina - Ashkelon

Haifa Bat Galim חיפה בת גלים Haifa Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Haifa Hof HaCarmel חיפה חוף הכרמל Haifa Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Haifa Central חיפה מרכז Haifa Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Herzliya הרצליה Herzliya Binyamina - Ashkelon

Hod HaSharon Sokolov

(Kfar Sava) הוד השרון סוקולוב

כפר סבא Hod HaSharon / Kfar Saba Hod Hasharon Sokolov - HaRishonim

Hutzot HaMifratz חוצות המפרץ Haifa Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Jerusalem Malha ירושלים מלחה Jerusalem Tel Aviv Central - Jerusalem Malha

Kfar Habad כפר חב"ד Kfar Habad Binyamina - Ashkelon

Kfar Saba – Nordau

(Hod HaSharon) כפר סבא נורדאו

הוד השרון Kfar Saba / Hod HaSharon Hod Hasharon Sokolov - HaRishonim

Kiryat Gat קרית גת Kiryat Gat Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Kiryat Haim קריית חיים Haifa (Kiryat Haim) Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Kiryat Motzkin קריית מוצקין Haifa (Kiryat Shmuel)

Kiryat Motzkin Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Lehavim Rahat להבים רהט Lehavim Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Lev HaMifratz לב המפרץ Haifa Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Haifa Hof HaCarmel - Kiryat Motzkin

Lod לוד Lod Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Hod Hasharon Sokolov - HaRishonim

Lod Ganei Aviv לוד גני אביב Lod Hod Hasharon Sokolov - HaRishonim

Modi'in Central מודיעין מרכז Modi'in Nahariya - Modi'in

Nahariya נהריה Nahariya Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Netanya נתניה Netanya Binyamina - Ashkelon

Paatei Modi'in פאתי מודיעין Modi'in Nahariya - Modi'in

Petah Tikva Kiryat Arye פתח תקווה קרית אריה Petah Tikva Hod Hasharon Sokolov - HaRishonim

Petah Tikva Segula פתח תקווה סגולה Petah Tikva Hod Hasharon Sokolov - HaRishonim

Ramla רמלה Ramla Tel Aviv Central - Jerusalem Malha

Rehovot רחובות Rehovot Binyamina - Ashkelon

Rishon LeZion HaRishonim ראשון לציון הראשונים Rishon LeZion Hod Hasharon Sokolov - HaRishonim

Rosh HaAyin Tzafon ראש העין צפון Rosh HaAyin / Neve Yerek Hod Hasharon Sokolov - HaRishonim

Tel Aviv HaHagana תל אביב ההגנה Tel Aviv Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Tel Aviv Central - Be'er Sheva Center

Nahariya - Modi'in

Hod Hasharon Sokolov - HaRishonim

Tel Aviv HaShalom תל אביב השלום Tel Aviv Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Tel Aviv Central - Be'er Sheva Center

Hod Hasharon Sokolov - HaRishonim

Tel Aviv Central

Savidor תל אביב מרכז

סבידור Tel Aviv / Ramat Gan Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Tel Aviv Central - Be'er Sheva Center

Hod Hasharon Sokolov - HaRishonim

Tel Aviv University

Convention Center תל אביב אוניברסיטה

מרכז הירידים Tel Aviv Binyamina - Ashkelon

Nahariya - Be'er Sheva Center

Nahariya - Modi'in

Hod Hasharon Sokolov - HaRishonim

Yavne יבנה Yavne Binyamina - Ashkelon

Rolling stock

Bombardier double-deck coach

Israel Railways employs the following passenger trains and locomotives (partial list):

Various G-series (G12, G16, G26) GM-EMD export locomotives (since 1955)

Boris Kidrič/Metalka "Yugo" (since 1964-72)

ABB Scandia IC3 (since 1992)

Alstom Prima diesel locomotives (JT42BW and JT42CW, GM-EMD powered) (since 1996)

Bombardier Double-deck Coach since 2001; a further coaches were ordered from Bombardier in 2010.

Siemens Viaggio Light (configured as "ISR SDPP train") passenger coaches (since 2009)

Railway disasters

In 1972, a train crashed into a military truck, killing 18 soldiers.

On June 11, 1985, a train crashed into a bus carrying school children, killing 19 children and 3 adults, near moshav HaBonim.

On June 21, 2005, a train crashed into a freight truck near kibbutz Revadim, killing 8 and injuring 198.

On June 12, 2006, a train crashed into a truck near Beit Yehoshua, killing 5 and injuring from 77 to over 80.

On December 27, 2009 a train crashed into a car near Kiryat Gat. The driver proceeded without regard to the train checkpoint on the road. The train struck his car and he was killed.

On August 5, 2010 a train crashed into a minibus near Kiryat Gat, killing 7 and injuring 6. The minibus was hit at 19:05 GMT+3 on Route 353, apparently as it tried to pass over a level crossing.

On December 28, 2010 a fire started in a train near kibbutz Yakum probably because a short circuit, wounding 116.

(source:wikipedia)

Economy of Israel

Economy of Israel
Rothschild Boulevard, a center of Israeli finance
Rank	24th (According to the World Economic Forum Global Competiveness report) Central Bank of Israel ranked 1st for its effective operation
Currency	New Israeli Shekel (NIS)
Fiscal year	Calendar Year
Trade organisations	BIS, CLS Bank, EBRD, IADB, ICC, ISO,ITUC, OECD, UN economic bodies,WCO, WFTU, WTO.
Statistics
GDP	$206.9 billion (2009 est.)
GDP growth	4.2% (2008 est.), 0.5% (2009 est.)
GDP per capita	$28,900 (2008 est.)
GDP by sector	agriculture (2.7%), industry (31.7%), services (65.6%) (2008 est.)
Inflation (CPI)	2.5% (2010 est.)
Population below poverty line	23.6% (2007), note that Haredim and Arabs make up about 25% of Israel's population, and account for most of the poverty
Gini index	39.2 (2008)
Labour force	3.01 million (2008 est.)
Labour force by occupation	Agriculture (2%), Industry (16%), Services (82%) (30 September 2008)
Unemployment	6.2% (July 2010)
Main industries	high-technology projects  (including aviation, communications, computer-aided design and manufacture,medical electronics,  fiber optics), wood and paper products, potash andphosphates, food, beverages, and tobacco, caustic soda, cement, construction, metal products, chemical products, plastics,  diamond cutting,textiles and footwear
Ease of Doing Business Rank	29th
External
Exports	$44.35 billion f.o.b. (2009 est.)
Export goods	machinery and equipment,  software, cut diamonds,  agricultural products, chemicals, textiles and apparel, military equipment,  food.
Main export partners	US 32.5%, Belgium 7.5%,  Hong Kong 6.7% (2008)
Imports	$47.4 billion f.o.b. (2009 est.)
Import goods	raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
Main import partners	United States 12.3%,  Belgium 6.5%, Germany 6.0%,  China 6.5%, Switzerland  6.1%(2008)
Public finances
Public debt	78% of GDP (2009 est.)
Revenues	$45 billion (2008 est.)
Expenses	$58.6 billion (2009 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

 The economy of Israel is a diversified market economy with moderate state ownership and a rapidly developing high-tech sector, which is backed by a thriving Venture capital industry. Israel possesses a substantial service sector and the Israel diamond industry is one of the world's centers for diamond cutting and polishing. It is also a world leader in software development and is a major tourist destination. The major industrial sectors include metal products, electronic and biomedical equipment, processed foods, chemicals, and transport equipment. Relatively poor in natural resources, Israel depends on imports of petroleum, coal, food, uncut diamonds and production inputs, though the country's nearly total reliance on energy imports may change with recent discoveries of large gas reserves off its coast. The high concentration of high-tech industries in Israel, gave it the nickname "Silicon Wadi", which is considered second in importance only to its Californian counterpart.

In September 2010, Israel joined the OECD, which praised Israel's scientific and technological progress and described it as having "produced outstanding outcomes on a world scale." Israel has also signed free trade agreements with the European Union, the United States, the European Free Trade Association, Turkey, Mexico, Canada, Jordan, Egypt, and on 18 December 2007, became the first non-Latin American country to sign a free trade agreement with the Mercosur trade bloc.

The country's GDP (Purchasing power parity) in 2006 reached $195 billion according to the International Monetary Fund or $179 billion according to the World Bank (see List of countries by GDP (PPP)). GDP per capita has been $31,767 according to the International Monetary Fund in 2007 or $26,200 in 2006 according to the CIA World Factbook. The economy grew by 8% in the last quarter of 2006, faster than any of its Western counterparts.

American billionaires and business tycoons including Bill Gates, Cole Roberts, Warren Buffett, and Donald Trump have each praised Israel’s economic environment, and the country was the destination for Berkshire Hathaway's first investment outside of the USA when it purchased ISCAR Metalworking, and the first research and development centers outside the USA for companies including Intel and Microsoft.

One of the biggest challenges facing the future of the Israeli economy is the growing number of Ultra-Orthodox Jews who prohibit non-religious education, particularly for boys, and there is a low level of official labor force participation amongst men. The governor of the Bank of Israel, Stanley Fischer, stated that the growing poverty amongst the Ultra-Orthodox is hurting the Israeli economy.

History

Pre-state Jewish economy

The first survey of the Dead Sea in 1911, by the Russian Jewish engineer Moshe Novomeysky, led to the establishment of Palestine Potash Ltd. in 1930, later renamed the Dead Sea Works. In 1923, Pinhas Rutenberg was granted an exclusive concession for the production and distribution of electric power. He founded the Palestine Electric Company, later the Israel Electric Corporation. In 1937, there were 86 spinning and weaving factories in Palestine, employing a workforce of 1,500. Capital and technical expertise were supplied by Jewish professionals from Europe. The Ata textile plant in Kiryat Ata, which went on to become an icon of the Israeli textile industry, was established in 1934. The industry underwent rapid development during World War II, when supplies from Europe were cut off and local manufacturers were commissioned for army needs. By 1943, the number of factories had grown to 250, with a workforce of 5,630, and output increased tenfold.

After the establishment of the state

After statehood, priority was given to establishing industries in areas slated for development, among them Lachish, Ashkelon, the Negev and Galilee. The expansion of Israel's textile industry was a consequence of the development of cotton growing as a profitable agricultural branch. By the late 1960s, textiles were one of the largest industrial branches in Israel, second only to the foodstuff industry. Textiles constituted about 12% of industrial exports, becoming the second largest export branch after diamonds. In the 1990s, cheap East Asian labor decreased the profitability of the sector. Much of the work was subcontracted to 400 Israeli Arab sewing shops. As these closed down, Israeli firms, among them Delta, Polgat, Argeman and Kitan, began doing their sewing work in Jordan and Egypt, usually under the QIZ arrangement. In the early 2000s, Israeli companies had 30 plants in Jordan. Israeli exports reached $370 million a year, supplying such retailers and designers as Marks & Spencer, The Gap, Victoria's Secret, Wal-Mart, Sears, Ralph Lauren, Calvin Klein, and Donna Karan.

In its first two decades of existence, Israel's strong commitment to development led to economic growth rates that exceeded 10% annually. The years after the 1973 Yom Kippur War were a lost decade economically, as growth stalled, inflation soared and government expenditures rose significantly. Also worthy of mention is the 1983 Bank stock crisis. By 1984, the economic situation became almost catastrophic with inflation reaching an annual rate close to 450% and projected to reach over 1000% by the end of the following year. However, the successful economic stabilization plan implemented in 1985  and the subsequent introduction of market-oriented structural reforms  reinvigorated the economy and paved the way for its rapid growth in the 1990s and became a model for other countries facing similar economic crises.

Two developments have helped to transform Israel's economy since the beginning of the 1990s. The first is waves of Jewish immigration, predominantly from the countries of the former USSR, that has brought over one million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 16% of Israel's 7.5 million population. The second development benefiting the Israeli economy is the peace process begun at the Madrid conference of October 1991, which led to the signing of accords led to a peace treaty between Israel and Jordan (1994).

Despite the Second Intifada, which cost Israel billions of dollars in economic terms[citation needed], Israel managed to open up new markets to Israeli exporters farther afield, such as in the rapidly growing countries of East Asia.

In the past few years there has been an unprecedented inflow of foreign investment in Israel, as companies that formerly shunned the Israeli market now see its potential contribution to their global strategies. In 2006, foreign investment in Israel totaled $13 billion, according to the Manufacturers Association of Israel. The Financial Times said that 'bombs drop, yet Israel's economy grows'. Moreover, while Israel's total gross external debt is US$84 billion, or approximately 44% of GDP, since 2001 it has become a net lender nation in terms of net external debt (the total value of assets vs. liabilities in debt instruments owed abroad), which as of June 2009 stood at a significant surplus of US$54 billion.

The Israeli economy withstood the late-2000s recession, registering positive GDP growth in 2009 and ending the decade with an unemployment rate lower than that of many western countries.There are several reasons behind this economic resilience, for example, the fact, as stated above, that the country is a net lender rather than a borrower nation and the government and the Bank of Israel's generally conservative macro-economic policies. Two policies in particular can be cited, one is the refusal of the government to succumb to pressure by the banks to appropriate large sums of public money to aid them early in the crisis, thus limiting their risky behavior. The second is the implementation of the recommendations of the Bach'ar commission in the early to mid-2000s which recommended decoupling the banks' depository and investment banking activities, contrary to the then-opposite trend, particularly in the United States, of easing such restrictions which had the effect of encouraging more risk-taking in the financial systems of those countries.

OECD membership

In May 2007, Israel was invited to open accession discussions with the OECD.In May 2010, the OECD voted unanimously to invite Israel to join, despite Palestinian objections. It became a full member on 7 September 2010.

Economy rankings

As of 2010, Israel ranks 17th among of the world's most economically developed nations, according to IMD's World Competitiveness Yearbook rankings. The Israeli economy was ranked as the world's most durable economy in the face of crises, and was also ranked first in the rate research and development center investments.

The Bank of Israel was ranked first among central banks for its efficient functioning, up from the 8th place in 2009. Israel was ranked first also in its supply of skilled manpower.

Israeli companies, particularly in the high-tech area, have enjoyed considerable success raising money on Wall Street and other world financial markets; As of 2010 Israel ranked second among foreign countries in the number of its companies listed on U.S. stock exchanges.

Macro-economic trend

This is a chart of trend of gross domestic product of Israel at market prices estimated by the International Monetary Fund and EconStats with figures in millions of Israeli Shekels. Average wages in 2007 hover around $109–133 per day.

Year Gross Domestic Product Per Capita Income

(as % of USA)

1985 28,437 38.37

1990 106,475 53.15

1995 269,718 64.29

2000 470,732 58.45

2005 553,970 47.45

2007 624,2981

External trade

Israeli exports in 2006

For 2006, Israeli exports grew by 11% to just over $29 billion; the hi-tech sector accounted for $14 billion, a 20% increase from the previous year.

The United States is Israel's largest trading partner; two-way trade totalled some $12.6 billion in 1997. The principal U.S. exports to Israel include computers, integrated circuits, aircraft parts and other defense equipment, wheat, and automobiles. Israel's chief exports to the U.S. include cut diamonds, jewelry, integrated circuits, printing machinery, and telecommunications equipment. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following ten years. An agricultural trade accord was signed in November 1996, which addressed the remaining goods not covered in the FTA. Some non-tariff barriers and tariffs on goods remain, however. Israel also has trade and cooperation agreements in place with the European Union and Canada, and is seeking to conclude such agreements with a number of other countries, including Turkey, Jordan and several countries in Eastern Europe.

Until the last decade, Israel's trade with the Arab world was minimal due to the Arab League boycott. Beginning in 1945, Arab nations not only refused to have direct trade with Israel (the primary boycott), but they also refused to do business with any corporation that operated in Israel (secondary boycott), or any corporation that did business with a corporation that did business with Israel (tertiary boycott).

Israel is one of the world's major exporters of military equipment, accounting for 10% of the world total in 2007.

Sectors

Agriculture

Lemon orchard in the Galilee

 Agriculture in Israel

2.8% of the country's GDP is derived from agriculture. Of a total labor force of 2.7 million, 2.6% are employed in agricultural production while 6.3% in services for agriculture.While Israel imports substantial quantities of grain (approximately 80% of local consumption), it is largely self-sufficient in other agricultural products and food stuffs. For centuries, farmers in Israel have grown varieties of citrus fruits such as grapefruit, oranges and lemons. Citrus fruits are still Israel's major agricultural export. In addition, Israel is one of the world's leading greenhouse food exporting countries.

Financial sector

Azorim High-Tech park in Petah-Tikva, Israel

Banking in Israel, Venture capital in Israel, and Tel Aviv Stock Exchange

Israel’s venture capital industry has rapidly developed from the early 1990s, and has about 70 active venture capital funds, of which 14 international VCs with Israeli offices. Israel's thriving venture capital and Business incubator industry played an important role in the booming high-tech sector. In 2008, venture capital investment in Israel, rose 19 percent to $1.9 billion.

Between 1991 and 2000, Israel’s annual venture-capital outlays, nearly all private, rose nearly 60-fold, from $58 million to $3.3 billion; companies launched by Israeli venture funds rose from 100 to 800; and Israel’s information-technology revenues rose from $1.6 billion to $12.5 billion. By 1999, Israel ranked second only to the United States in invested private-equity capital as a share of GDP. And it led the world in the share of its growth attributable to high-tech ventures: 70 percent." 

Technology sector

Weizmann Institute of Science,Rehovot

 Science and technology in Israel and Silicon Wadi

Science and technology in Israel is one of the country's most developed sectors. The percentage of Israelis engaged in scientific and technological inquiry, and the amount spent on research and development (R&D) in relation to gross domestic product (GDP), is amongst the highest in the world. Israel ranks fourth in the world in scientific activity as measured by the number of scientific publications per million citizens. Israel's percentage of the total number of scientific articles published worldwide is almost 10 times higher than its percentage of the world's population.

Israeli scientists have contributed to the advancement of agriculture, computer sciences, electronics, genetics, medicine, optics, solar energy and various fields of engineering. Israel is home to major players in the high-tech industry and has one of the world's most technologically-literate populations. In 1998, Tel Aviv was named by Newsweek as one of the ten most technologically influential cities in the world.

Energy

As of 2009, Israel relied on external imports for meeting most of its energy needs, spending an amount equivalent to over 5% of its GDP per year on imports of energy products. The transportation sector relies mainly on gasoline and diesel fuel while the majority of electricity production is generated using imported coal. The country possesses negligible reserves of crude oil but does have abundant domestic natural gas resources which were discovered in large quantities starting in 2009, after many decades of previously unsuccessful exploration. A 33 billion cubic meters (BCM) natural gas field is located offshore Ashkelon, however, as of 2009 it is approximately two-thirds exhausted. In 2009, a significant gas find with proven reserves of 184 BCM (247 BCM probable) was located in deep water approximately 90 km west of Haifa as well as a smaller 15 BCM field situated nearer the coastline. Furthermore, results of 3D seismic surveys and test drilling conducted in 2010 confirmed that a 453 BCM natural gas deposit exists in a large underwater geological formation nearby the large gas field already discovered in 2009. (For comparison purposes, the United Kingdom's total proven gas reserves as of 2009 are 343 BCM while Germany's consist of 176 BCM.) In the years 2009-2030, the Israeli market is expected to consume around 250 BCM of natural gas and since proven domestic supplies outstrip this demand, it is expected that some of the gas will be exported abroad when the fields are commercially developed. For competitive reasons, natural gas is also purchased by pipeline from nearby Egypt and in the future potentially in the form of LNG from other countries. The large gas discoveries have confirmed that the Levant basin of the Eastern Mediterranean contains significant quantities of natural gas and, potentially, crude oil. Consequently, additional exploration for oil and gas off Israel's coastline is continuing.

Field  Discovered Production Estimated size

Mari-B 2000 2004 1 trillion cubic feet

Tamar 2008 Not in production 8.4 trillion cubic feet

Dalit 2009 Not in production 700 billion cubic feet

Leviathan 2010 Not in production 16 trillion cubic feet

Electricity

As of 2010, the Israel Electric Corporation (IEC), a state-owned enterprise, produces nearly all of the electricity generated in Israel. The IEC has an aggregate installed generating capacity of 11,690 MW, virtually all of it produced from fossil fuels. In 2009 the Company sold 48,947 GWh of electricity. The IEC is in the midst of adding several thousand megawatts of generating capacity due to increased demand, though a debate is currently raging with respect to how much should be generated from new coal-fired versus gas-fired plants, a determination complicated by the fact that some of the company's capital investment decisions predate the recent discoveries of significant reserves of natural gas offshore. In addition, in order to encourage competition in the electricity market, the government of Israel is currently (mid-2010) considering proposals from four private companies to generate up to 3,640 MW of electricity in 11 new sites, most of which would be gas-fired combined cycle power stations.

The Negev Desert is home to the Israeli solar research industry, in particular the National Solar Energy Center and the Arava Valley, which is the sunniest area of Israel.

Fuel Sources of Total Generated Electricity by the IEC in 2009

Coal Fuel oil Natural gas Diesel

64.7% 1.2% 32.6% 1.5%

Solar Energy

 Solar power in Israel

Solar power in Israel and the Israeli solar energy industry has a history that dates to the founding of the country. In the 1950s, Levi Yissar developed a solar water heater to help assuage an energy shortage in the new country. By 1967 around one in twenty households heated their water with the sun and 50,000 solar heaters had been sold. With the 1970s oil crisis, Harry Zvi Tabor, the father of Israel's solar industry, developed the prototype solar water heater that is now used in over 90% of Israeli homes. Israeli engineers are on the cutting edge of solar energy technology and its solar companies work on projects around the world.

Industrial sector

Companies of Israel by industry

The Dead Sea Works in Sdom is the world's fourth largest producer and supplier of potash products. The company also produces include magnesium chloride, industrial salts, de-icers, bath salts, table salt, and raw materials for the cosmetic industry.

Diamond industry

 Diamond industry in Israel

Israel is one of the world's three major centers for polished diamonds, alongside Belgium and India. Israel's net polished diamond exports in the first quarter of 2010 jumped 55 percent from 2009, to $1.45 billion, after a 37 percent drop in all of 2009 to $3.92 billion.

Telecommunications

 Telecommunications in Israel

Tourism

Ayalon Highway near Tel Aviv

Further information: Tourism in Israel

Tourism is one of Israel's major sources of income, with 2.7 million foreign tourists in 2009. Israel offers a plethora of historical and religious sites, beach resorts, archaeological tourism, heritage tourism and ecotourism. Israel has the highest number of museums per capita in the world. The most popular paid site is Masada.

Further information: Transport in Israel

Income

Comparing incomes of a median household in Israel vs. other countries.

"OECD, PPP conversion rates". Retrieved 2006-01-20. "OECD, PPP conversion rates in Israel". Retrieved 2007-01-25.

Country	Median household income national currency units	Year	PPP rate (OECD)	Median household income (PPP)
Switzerland	(gross) 109,236 CHF, $100,387	2008	1.68375	$64,877
Connecticut, US	64,851 USD	2009	1.00	$64,851
California, US	56,134 USD	2009	1.00	$56,134
Canada	(After tax) 63,900 CAD	2008	1.23	$51,951
United States	49,777 USD	2009	1.00	$49,777
Switzerland	(after taxes and health insurance) 77,580 CHF, $71,296	2008	1.640256	$47,297
Australia[	66,890 AUD	2007/2008	1.5162805	$44,115
New Zealand	63,867 NZD	2008/2009	1.5881895	$40,214
United Kingdom	24,700 GBP	2004	0.632	$39,000
Israel	107,820 ILS	2006	2.90	$37,000
Mississippi, US	35,076 USD	2009	1.00	$35,076
Ireland	35,410 EUR	2005	1.02	$35,000
Scotland, United Kingdom	21,892 GBP	2005	0.649	$34,000
Hong Kong	186,000 HKD	2005	5.96	$31,000
Singapore	45,960 SGD	2005	1.55	$30,000

Annual data 2006	Historical averages (%) 2002-06
Population (m) - 7.1	Population growth - 1.8
GDP per head (US$; purchasing power parity) - 27,588	Real GDP growth - 3.1
Percent of unemployed persons (May 2009) - 8.4%	Inflation - 1.9
Exchange rate (av) NIS:US$ - 3.8	Current-account balance (% of GDP) - 1.6

According to the data published by Ian Fursman 60% of the poor households in Israel are of the Haredi Jews and the Israeli Arabs in which there is a high birth rate and a low participation rate in the labor force. Both Groups together represent 25 - 28% of the Israeli population.

(source:wikipedia)