Chamber of Commerce Country Factsheet Last update: 03.08.2017
Your advisors at the Chamber of Commerce
- Edith Stein+352423939482
- Daniel Sahr+352423939313
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
After picking up to 4% in 2016, growth is projected to be around 3¼ per cent in 2017-18. Inflation is projected to firm up gradually. The maintenance of expansionary monetary and fiscal policies and projected wage increases will continue to shore up domestic demand.
As inflation increases, the central bank is projected to gradually withdraw monetary stimulus. Despite having abated somewhat, ongoing tensions in the property market continue to require the authorities' attention to preserve a robust banking sector. With the economy at full employment, the budgetary expansion projected in 2017 could increase labour market tensions and slow the decline in government debt. Measures taken or announced in welfare, housing and transport should promote more inclusive growth.
Continued product market reforms are needed to stimulate productivity and pay in the sheltered sector where many of the lowest-skilled workers are employed. Increased external competition, especially in the agricultural and food sectors, would reduce the cost of living. Less restrictive import procedures, with lower non-tariff barriers, would deepen integration into global value chains, which is relatively limited. To ensure a better sharing of the benefits of this integration, a more effective education system, facilitating the integration of disadvantaged groups, would be desirable.
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
Luxembourg and the country
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
Luxembourg Trade and Investment Office
113 St. Hashmonaim
Tel Aviv 67133
Tel: +972 3 6225 445
Fax: +972 3 6225 448
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
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
The Chamber of Commerce and the country