10.2 GDP of Israel and its unique sectorial makeup
All sectors that make up Israel’s GDP and specifics around the country’s makeup
Predominant sectors: The predominant sectors in Israel’s GDP include technology and innovation, pharmaceuticals, agriculture, and services.
Not so predominant sectors: Sectors like heavy industry and manufacturing are not as predominant in Israel’s GDP.
Total GDP
Total GDP – Israel’s total GDP is approximately $564.15 billion (as of 2023).
GDP share of primary industry: Israel’s GDP from agriculture fell to 4705.50 ILS million in the fourth quarter of 2022 from 4772.70 ILS million in the third quarter. The three main industries that contribute to the primary industry are forestry, fishing, and agriculture.
Figure 1: GDP from Primary Industry
Secondary industry share of the total GDP: Secondary industry contributes around 26.5% to Israel’s total GDP in 2017. Israel’s secondary industry includes manufacturing, technology, and pharmaceuticals.
Tertiary industry share of the total GDP: Tertiary industry, which comprises services, contributes around 69.5% to Israel’s total GDP in 2017. The Tertiary Industry in Israel includes sectors such as healthcare, finance, education, and tourism.
GDP growth rate – YOY
Total GDP growth rate: It was estimated that Israel’s real gross domestic product would grow at a total of 0.6 percentage points per year between 2023 and 2028. Israel’s GDP Annual Growth Rate averaged 3.87 percent between 1996 and 2023. It reached a record low of -8.06 percent in the same quarter of 2020 and reached a peak of 15.43 percent in the second quarter of 2021.
Growth rate of the primary industry: The growth rate of the primary industry is comparatively stable, with variations based on weather and worldwide demand.
Growth rate of Secondary Industry: Strong growth has been demonstrated by the secondary industry, particularly in the technology and pharmaceutical sectors, which frequently outpace the GDP growth rate as a whole.
Growth rate of the Tertiary Industry: Driven by innovation and services, the tertiary industry has significantly boosted GDP growth, with growth rates that are comparable to the GDP growth rate overall.