Although geopolitical instability due to a surge in Palestinian attacks and conflicts in neighboring countries including Iran, Lebanon, and Syria is rocking Israel, this small and open economy holds undeniable promise. Per International Monetary Fund’s (“IMF”) latest World Economic Outlook, aggregate real GDP in Israel has grown about 100% in 1996–2014 while economic superpowers like the U.S. and the EU have expanded 50% and 24%, respectively, over the same time frame.

Moreover, IMF data revealed that Israel is among the three developed economies (the others being Australia and South Korea) that continued to expand since the global economic crisis. Much of the sustained growth can be attributed to its market-friendly approach, well-organized labor market, high quality of education and a lower tax burden (read: Israel ETFs in Focus on Surprise Rate Cut).

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