Chambre de Commerce - Fiche d'information pays Dernière mise à jour: 30.12.2016
Following World War II, Britain withdrew from its mandate of Palestine, and the UN proposed partitioning the area into Arab and Jewish states, an arrangement rejected by the Arabs. Nonetheless, an Israeli state was declared in 1948, and Israel subsequently defeated the Arab armies in a series of wars that did not end deep tensions between the two sides. (The territories Israel has occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted.) On 25 April 1982, Israel withdrew from the Sinai Peninsula pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, Israel conducted bilateral negotiations with Palestinian representatives and Syria to achieve a permanent settlement with each. Israel and Palestinian officials on 13 September 1993 signed a Declaration of Principles (also known as the "Oslo Accords"), enshrining the idea of a two-state solution to their conflict and guiding an interim period of Palestinian self-rule. The parties achieved six additional significant interim agreements between 1994 and 1999 aimed at creating the conditions for a two-state solution, but most were never fully realized. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Peace Treaty.
Progress toward a final status agreement with the Palestinians was undermined by Israeli-Palestinian violence between 2001 and February 2005. Israel in 2005 unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council in 2006 temporarily froze relations between Israel and the Palestinian Authority (PA). Israel engaged in a 34-day conflict with Hizballah in Lebanon from July-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip from December 2008-January 2009. In November 2012, Israel engaged in a seven-day conflict with HAMAS in the Gaza Strip. Direct talks with the Palestinians most recently launched in July 2013 but were suspended in April 2014. The talks represented the fourth concerted effort to resolve final status issues between the sides since they were first discussed at Camp David in 2000. Three months later HAMAS and other militant groups launched rockets into Israel, which led to a 51-day conflict between Israel and militants in Gaza.
Source: The CIA World Factbook - Israel
Growth is projected to remain at 2½ per cent in 2016 before rising to 3% in 2017. An expansionary budget and continuing low interest rates and oil prices should support domestic demand and employment. Exports have been very weak of late but should pick up with a gradual strengthening of foreign demand, albeit damped by the shekel's appreciation.
Given very low inflation and highly expansionary global monetary policies, continuing the current accommodative domestic monetary policy is desirable to prevent currency appreciation. Persisting tension on the property market still needs close monitoring by the authorities. Tax cuts and increased government spending in 2016 will boost the economy in the short term but will also complicate attaining the public debt reduction objective in the medium term.
The catching-up process and social cohesion could be enhanced by stronger productivity in sheltered sectors, which often have a low-skilled workforce. Current efforts to stimulate competition in these sectors, especially agriculture and banking, are most welcome and should be pursued to increase purchasing power. Improvements in public transport and a more effective education system to facilitate the integration of under-privileged groups into the labour market would also increase the efficiency of the economy and public well-being.
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 3.163 2.508 2.782 2.962 2.915 Gross domestic product, current prices 308.767 299.413 311.739 327.630 341.978 Gross domestic product per capita, current prices 37,599.212 35,743.461 36,556.919 37,778.164 38,811.572 Inflation, average consumer prices 0.476 -0.600 -0.575 0.795 1.636 Volume of imports of goods and services 3.845 -0.501 6.125 1.259 3.800 Volume of exports of goods and services 1.429 -4.300 1.925 2.174 3.500 Unemployment rate 5.950 5.225 5.242 5.242 5.242 Current account balance 12.479 13.886 9.541 9.524 8.759 Current account balance 4.041 4.638 3.061 2.907 2.561
Source: IMF Statistics - Israel
Le Luxembourg et le pays
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 12.13.2004 (Memorial 2006, A, no. 81, p. And 1446)
- Effective as of 05.22.2006 (Memorial 2006, A, no. 150, p. 2668)
Air Services agreement
- Agreement from 06.14.1994 (Memorial 1995, A, p. 1646)
- Effective as of 20.11.1995 (Memorial 1995, A, p. 2566)
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Israel
Economic and Commercial Attaché (AWEX):
Sason Hogi Tower
Abba Hillel Street, 12
Tel: +972 3 613 81 62
Fax: +972 3 613 81 69
Honorary Consul with jurisdiction in Israel: Mr. Miron Chaim IZAKSON
119, Rothschild Boulevard
Tel: +972 3 68 55 092
Fax: +972 3 68 55 095
Luxembourg Trade and Investment Office
113 St. Hashmonaim
Tel Aviv 67133
Tel: +972 3 6225 445
Fax: +972 3 6225 448
Country risk as defined by Office du Ducroire for Israel
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Luxembourg for Business market entry guide to Israel: Market entry guides are brochure series published by the Ministry of the Economy and Foreign. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.
Other Useful Links:
- CIA World factbook on Israel
- Israël sur le site de l'Awex
- Doing business in Israel
- Manufacturers' Association of Israel
- Economic Freedom Index - Israel
- Das ist Israel
La Chambre de Commerce et le pays