With
a nominal GDP of $305.707 billion, Israel ranks 39th in the world
and 19th in the UN’s Human Development Index , classifying it as a
very highly developed country. This can also be inferred by noticing its’ major
involvement in the tertiary or industrial sector, producing extremely high
technology products, chemicals and others. This is further boosted by its’
strong educational infrastructure. It is also active in telecommunications and
it has one of the largest diamond industries in the world.
Israel,
however, runs low on natural resources from the primary sector and has to
depend on imports from other countries. This may harm them in the long run.
However, if they are making considerable profits in their other sectors, they
should form a good base and have backup, should a situation ever arise that
their economic growth would fall.
The
most recent global financial crisis in 2009 caused Israel’s economy to contract
in the second quarter, plunging the economy into a brief period of recession
for the first time since 2001, as exports plummeted and investments in fixed
assets slumped.
Israel,
however, recovered smoothly, due to its’ clever government policies and
terrific banking sector. Monetary and fiscal expansion was pursued until stability
was established. Also, one of the main reasons Israel took the recession well
is because of the fact that in the years before the crisis, they followed not
only a disciplined, but extremely stable fiscal policy which is what allowed
the Bank of Israel to adjust it’s monetary policy.
https://www.youtube.com/watch?v=a-GIsRsmKRU
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