That dollar amount results from a 2.4% increase from $58.5 billion in 2019 but a -17.4% year-over-year drop from $72.6 billion in Israeli exports during 2022.
Based on the average exchange rate for 2023, the Israeli shekel depreciated by -2.9% against the US dollar since 2019 and declined by -9.2% from 2022 to 2023. Israel’s weaker local currency compared to 2022 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 70.2% of products exported from Israel was bought by importers in: United States of America (29.8% of the Israeli total), mainland China (5.9%), Ireland (5.6%), Netherlands (4.5%), India (4%), Germany (3.7%), United Kingdom (3.5%), Hong Kong (3.1%), Belgium (2.74%), Türkiye (2.68%), France (2.5%) and Brazil (2.3%).
From a continental perspective, 36.5% of Israel’s exports by value was delivered to European countries while 31.9% was sold to importers in North America. Israel shipped another 25.7% worth of goods to Asia.
Smaller percentages went to Latin America (3.4%) excluding Mexico but including the Caribbean, Africa (1.5%), then Oceania (1%) led by Australia and New Zealand.
Given Israel’s population of 9.76 million people, its total $59.9 billion in 2023 exports translates to roughly $6,100 for every resident in the Middle Eastern country. That dollar metric lags the average $8,000 per person one year earlier in 2022.
Israel’s Top 10 Exports
The following export product groups represent the highest dollar value in Israeli global shipments during 2023. Also shown is the percentage share each export category represents in terms of overall exports from Israel.
- Electrical machinery, equipment: US$11.4 billion (19% of total exports)
- Optical, technical, medical apparatus: $7.4 billion (12.4%)
- Gems, precious metals: $7.4 billion (12.3%)
- Machinery including computers: $5.1 billion (8.5%)
- Mineral fuels including oil: $4.2 billion (7.1%)
- Other chemical goods: $3.2 billion (5.4%)
- Plastics, plastic articles: $2.8 billion (4.6%)
- Aircraft, spacecraft: $2.1 billion (3.5%)
- Fertilizers: $1.9 billion (3.3%)
- Pharmaceuticals: $1.8 billion (3%)
Israel’s top 10 exports accounted for almost four-fifths (79%) of the overall value of global Israeli shipments.
Mineral fuels including oil was the sole grower among the top 10 export categories, up by 9.6% from 2022 to 2023.
The leading decliner among Israel’s top 10 export categories was pharmaceuticals, pulled down by a -43.3% year-over-year drop.
At the detailed 4-digit Harmonized Tariff System code level, the most valuable Israeli exports in 2023 are unmounted diamonds (11% of Israel’s total exports), electronic integrated circuits and microassemblies (7.4%), electro-medical equipment such as xrays (4%), phone devices including smartphones (3.8%), miscellaneous measuring and testing machines (3.4%), chemical industry products or residuals (also 3.4%), fertilizer mixes (2.7%), powered aircraft including helicopters (2.3%), medication mixes in dosage (1.9%), then packaged insecticides, fungicides and pesticides (also 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.
- Optical, technical, medical apparatus: US$4.2 billion (Down by -7.9% since 2022)
- Gems, precious metals: $2.7 billion (Down by -43.6%)
- Other chemical goods: $2.3 billion (Down by -30.7%)
- Fertilizers: $1.8 billion (Down by -36.4%)
- Aircraft, spacecraft: $1.7 billion (Down by -10.2%)
- Arms, ammunition: $1.4 billion (Down by -26.4%)
- Electrical machinery, equipment: $960.4 million (Reversing a -$766.7 million deficit)
- Inorganic chemicals: $766.8 million (Down by -3.5%)
- Base metal tools, cutlery: $705.8 million (Up by 7.5%)
- Fruits, nuts: $486.6 million (Up by 66.5%)
Israel has highly positive net exports in the international trade of products under the optical, technical and medical apparatus category as well as unmounted diamonds leading the gems and precious metals grouping. In turn, those cashflows indicate Israel’s strong competitive advantages under both product categories.
Products Causing Israel’s Highest Trade Deficits
Israel racked up a -US$34.2 billion product trade deficit for 2023, expanding by 12.2% from the -$30.5 billion in red ink one year earlier during 2022.
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.
- Vehicles: -US$8.4 billion (Down by -6.4% since 2022)
- Mineral fuels including oil: -$5.4 billion (Down by -49.9%)
- Machinery including computers: -$4.1 billion (Down by -33.1%)
- Iron, steel: -$1.9 billion (Down by -29.5%)
- Pharmaceuticals: -$1.54 billion (Up by 256.1%)
- Knit or crochet clothing, accessories: -$1.50 billion (Up by 1.6%)
- Cereals: -$1.04 billion (Down by -23.8%)
- Articles of iron or steel: -$1.02 billion (Down by -24.1%)
- Clothing, accessories (not knit or crochet): -$1.01 billion (Down by -7%)
- Furniture, bedding, lighting, signs, prefabricated buildings: -$846.4 million (Down by -23.6%)
Israel has highly negative net exports and therefore a deep international trade deficit for automobiles and mineral fuels-related energy products.
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 11.3% of its overall Gross Domestic Product for 2023 ($530.6 billion valued in Purchasing Power Parity US dollars). That 11.3% for exports to overall GDP in PPP for 2023 compares to 17.6% for 2022. Those percentages suggest a relatively decreasing 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 3.467% in 2023, down from an average 3.758% one year earlier during 2022 according to International Monetary Fund statistics.
Israel’s capital city is Jerusalem.
See also USA vs Israel Inter-Country Trade Report, 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 July 13, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on July 13, 2024
International Monetary Fund, Exchange Rates selected indicators (National Currency per U.S. dollar, period average). Accessed on July 13, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on July 13, 2024
International Trade Centre, Trade Map. Accessed on July 13, 2024
Investopedia, Net Exports Definition. Accessed on July 13, 2024
Wikipedia, Gross domestic product. Accessed on July 13, 2024
Wikipedia, Israel. Accessed on July 13, 2024
Wikipedia, List of Companies of Israel. Accessed on July 13, 2024
Wikipedia, Purchasing power parity. Accessed on July 13, 2024