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CAPinside2 MIN READING TIME2018-05-16

Israel's economic boom without raw materials

Since 2000, Israel has grown more economically than any other industrialized nation.

The founding of the State of Israel dates back 70 years. Despite numerous wars and a landscape poor in raw materials, the economy of the Jewish state flourishes . Especially in the construction sector, in IT and biotechnology, he stands out.

Heavy start

The situation for the Levantine state did not look so good in the beginning: Israel and the surrounding area have always been a rocky, dry country without significant resources . Agriculture needed the most advanced irrigation technologies, many of which have yet to be developed. Today, irrigation methods originating in Israel are used worldwide in arid countries . But the scarcity of raw materials was not the only problem: Immediately after the establishment on 14th May 1948 Egypt, Jordan, Lebanon, Iraq and Syria declared war on the country.

Strong growth

Since 2000, Israel has grown more economically than any other industrialized nation. The data is impressive: inflation is just 0.4 percent and unemployment is comparatively low at 4 percent . Government debt is 60 percent of gross domestic product, and per capita income is $ 38,000 . The Bank of Israel expects growth of 3.3 percent this year and an export volume of $ 100 billion.

Military and IT

The IT industry in Israel is firmly anchored in the army and defense of the country. Today, there may not be a leading tech company in Israel that does not have a former 8200 unit soldier or been involved in its creation. The legendary 8200 made a name for itself as a telecommunications unit . The military soon realized the importance of cyber warfare . And that's why it invests in digital warfare . This also affects the high-tech industry in the country.

Nowhere are so many IT companies established per inhabitant. There are 95 Israeli companies on the US Nasdaq Stock Exchange. Germany just makes it to 8. Only the US and China can reach Israel here. Meanwhile, 5400 IT companies have 8.4 million inhabitants . Apple, Cisco, Google, IBM and Microsoft have research centers here.

Progress in biomedicine

The field of biomedicine is also thriving in Israel. In 1995, there were only 180 companies active in medical technology. Today there are already more than 1000. Every year, this industry is expanded by 80 startups . The focus of life science companies is primarily on therapeutic aids used for vascular support, or on diagnostic and imaging technologies . Global corporations such as Philips and General Electric Healthcare maintain research centers here alongside many domestic companies.

Continuing construction boom

In the country there is a lot of construction work , everywhere there are construction sites. Especially Tel Aviv and Jerusalem are teeming with new construction projects. In Tel Aviv , the city is getting closer and closer to the beach with a new project. At the same time, you can not keep up with the renovations. New buildings are also being built in the West Bank , only 1100 objects of the government's settlement policy. The flourishing construction industry can be seen as an indicator of the healthy Israeli economy .