That dollar amount results from an 18.9% rise from $61.9 billion in 2018 and a 23% acceleration from $59.8 billion in Israeli exports during 2021.
Based on the average exchange rate for 2022, the Israeli shekel appreciated by 6.4% against the US dollar since 2018 but declined -4% from 2021 to 2022. Israel’s weaker local currency compared to 2021 makes its exports paid for in stronger US dollars relatively less expensive for international buyers.
Israel’s Main Trading Partners
The latest available country-specific data shows that 86.9% of products exported from Israel were bought by importers in: United States of America (34.4% of the global total), mainland China (8.6%), India (7.3%), United Kingdom (5.8%), Ireland (4.8%), Netherlands (4.5%), Türkiye (4.3%), Belgium (3.7%), Brazil (3.6%), Germany (3.5%), France (3.4%) and Hong Kong (3%).
From a continental perspective, 34.6% of Israel’s exports by value were delivered to European countries while 30% were sold to importers in North America. Israel shipped another 29.3% worth of goods to buyers in Asia.
Smaller percentages went to Latin America excluding Mexico but including the Caribbean (4%), Africa (1.1%), then Oceania led by Australia and New Zealand (1%).
Given Israel’s population of 9.2 million people, its total $73.6 billion in 2022 exports translates to roughly $8,000 for every resident in the Middle Eastern country. That dollar metric exceeds the average $6,400 per person one year earlier in 2021.
Israel’s Top 10 Exports
The following export product groups represent the highest dollar value in Israeli global shipments during 2022. Also shown is the percentage share each export category represents in terms of overall exports from Israel.
- Electrical machinery, equipment: US$10.2 billion (17% of total exports)
- Gems, precious metals: $9.5 billion (15.9%)
- Optical, technical, medical apparatus: $7.4 billion (12.3%)
- Machinery including computers: $5.1 billion (8.5%)
- Plastics, plastic articles: $3.2 billion (5.4%)
- Other chemical goods: $2.9 billion (4.8%)
- Pharmaceuticals: $2.45 billion (4.1%)
- Aircraft, spacecraft: $2.43 billion (4.1%)
- Mineral fuels including oil: $2.4 billion (4%)
- Fertilizers: $1.5 billion (2.5%)
Israel’s top 10 exports accounted for almost four-fifths (79%) of the overall value of its global shipments.
Fertilizers represent the fastest grower among the top 10 export categories, up by 107.4% from 2021 to 2022.
In second place for improving export sales were mineral fuels including oil via a 59.7% upturn.
Israel’s shipments of miscellaneous chemical goods recorded the third-fastest gain in value, up by 57.6%.
The lone decliner among Israel’s top 10 export categories was aircraft and spacecraft, dragged down by -3.6% drop compared to 2021.
At the detailed 4-digit Harmonized Tariff System code level, the most valuable Israeli exports in 2022 are unmounted diamonds (14.8% of Israel’s total exports), electronic integrated circuits and microassemblies (6.7%), chemical industry products or residuals (4.4%), fertilizer mixes (3.5%), electro-medical equipment such as xrays (3.3%), phone devices including smartphones (also 3.3%), miscellaneous measuring and testing machines (2.9%), medication mixes in dosage (2.8%), aircraft parts (2.1%), then medication mixes not in dosage (1.9%).
Products Generating Israel’s Highest Trade Surpluses
The following types of Israeli product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Gems, precious metals: Up by 10.1% (US$4.7 billion)
- Optical, technical, medical apparatus: Up by 13.4% ($4.7 billion)
- Other chemical goods: Up by 88.6% ($3.3 billion)
- Fertilizers: Up by 112.1% ($2.9 billion)
- Aircraft, spacecraft: Up by -8.6% ($2 billion)
- Arms, ammunition: Up by 32.4% ($1.9 billion)
- Base metal tools, cutlery: Up by 17.7% ($844 million)
- Inorganic chemicals: Up by 30.3% ($798.5 million)
- Fruits, nuts: Up by 0.3% ($274.6 million)
- Felt, yarn, twine, ropes, cables: Up by 6.4% ($226.6 million)
Israel has highly positive net exports in the international trade of unmounted diamonds and products under the optical, technical and medical apparatus category. In turn, those cashflows indicate Israel’s strong competitive advantages under the gems and precious metals product categories.
Products Causing Israel’s Highest Trade Deficits
Israel racked up a -US$34.2 billion product trade deficit for 2022, expanding by 12.2% from the -$30.5 billion in red ink one year earlier during 2021.
Below are exports from Israel that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Israel’s goods trail Israeli importer spending on foreign products.
- Mineral fuels including oil: -US$10.8 billion (Up by 62.7% since 2021)
- Vehicles: -$9 billion (Up by 20.8%)
- Machinery including computers: -$6 billion (Up by 5.8%)
- Iron, steel: -$2.7 billion (Up by 20.7%)
- Knit or crochet clothing, accessories: -$1.5 billion (Up by 14.7%)
- Cereals: -$1.4 billion (Up by 19.0%)
- Articles of iron or steel: -$1.3 billion (Up by 29.5%)
- Furniture, bedding, lighting, signs, prefabricated buildings: -$1.11 billion (Down by -4.4%)
- Clothing, accessories (not knit or crochet): -$1.08 billion (Up by 12.6%)
- Meat: -$1.07 billion (Up by 23.4%)
Israel has highly negative net exports and therefore a deep international trade deficit for mineral fuels-related products and also automobiles.
Israeli Export Companies
Ten Israeli corporations rank among Forbes Global 2000. Below is a sample of the world-class Israeli companies that Forbes included:
- Bank Hapoalim (financial institution)
- Bank Leumi (financial institution)
- Check Point Software (information systems)
- Delek Group (investment services)
- FIBI Holdings (regional bank)
- IDB Holding (investment services)
- Israel Corp (investment services)
- Israel Discount Bank (regional bank)
- Mizrahi Tefahot Bank (regional bank)
- Teva Pharmaceutical (health care)
Shown within parentheses is the industry in which each country operates.
In macroeconomic terms, Israel’s total exported goods represent 17.6% of its overall Gross Domestic Product for 2022 ($418 billion valued in Purchasing Power Parity US dollars). That 17.6% for exports to overall GDP in PPP for 2022 compares to 14% for 2021. Those percentages suggest a relatively increasing reliance on products sold on international markets for Israel’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Israel’s unemployment rate averaged 3.48% in 2022, up from an average 4.32% one year earlier during 2021 according to research metrics portal Statista.
Israel’s capital city is Jerusalem.
See also Israel’s Top 10 Imports, Israel’s Top Trading Partners, Palestine’s Top 10 Exports, Lebanon’s Top 10 Exports and Diamond Exports by Country
Research Sources:
Central Intelligence Agency, The World Factbook Middle East: Israel. Accessed on May 13, 2023
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on May 13, 2023
International Monetary Fund, Exchange Rates selected indicators (National Currency per U.S. dollar, period average)
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on May 13, 2023
International Trade Centre, Trade Map. Accessed on May 13, 2023
Investopedia, Net Exports Definition. Accessed on May 13, 2023
Wikipedia, Gross domestic product. Accessed on May 13, 2023
Wikipedia, Israel. Accessed on May 13, 2023
Wikipedia, List of Companies of Israel. Accessed on May 13, 2023
Wikipedia, Purchasing power parity. Accessed on May 13, 2023
World’s Capital Cities, Capital Facts for Jerusalem, Israel. Accessed on May 13, 2023
