Israel has a GDP of $540B compared to $13.7B for Palestine, ranking 28/197 and 146/197 by economy size, respectively.
The chart below compares the two countries' GDP growth in both current (nominal) and constant dollars, accounting for inflation over time.
| Year | GDP | |||
|---|---|---|---|---|
Israel
|
Palestine
|
|||
| Current $ | Constant $ | Current $ | Constant $ | |
| 1960 | $3,070,585,807 | $18,583,908,318 | - | - |
| 1961 | $3,708,586,471 | $20,666,029,079 | - | - |
| 1962 | $2,966,154,031 | $22,764,895,217 | - | - |
| 1963 | $3,535,949,089 | $25,199,765,384 | - | - |
| 1964 | $4,024,344,853 | $27,199,917,741 | - | - |
| 1965 | $4,329,084,429 | $29,647,352,060 | - | - |
| 1966 | $4,703,300,098 | $29,623,738,826 | - | - |
| 1967 | $4,762,386,783 | $30,510,977,644 | - | - |
| 1968 | $5,458,427,928 | $35,466,555,951 | - | - |
| 1969 | $6,297,852,761 | $40,277,843,296 | - | - |
| 1970 | $7,406,712,876 | $43,221,080,450 | - | - |
| 1971 | $7,052,544,000 | $47,954,251,679 | - | - |
| 1972 | $9,222,557,539 | $53,779,040,921 | - | - |
| 1973 | $11,902,574,259 | $56,783,925,432 | - | - |
| 1974 | $17,172,607,138 | $60,461,344,100 | - | - |
| 1975 | $16,141,767,373 | $62,421,996,171 | - | - |
| 1976 | $15,956,349,550 | $62,623,309,265 | - | - |
| 1977 | $18,257,113,904 | $63,271,647,907 | - | - |
| 1978 | $17,701,286,907 | $66,786,442,968 | - | - |
| 1979 | $22,609,741,060 | $70,932,422,328 | - | - |
| 1980 | $25,395,256,478 | $72,117,307,131 | - | - |
| 1981 | $26,882,009,819 | $75,968,318,466 | - | - |
| 1982 | $29,255,285,401 | $77,550,358,896 | - | - |
| 1983 | $32,675,755,462 | $80,155,353,983 | - | - |
| 1984 | $30,645,607,293 | $80,903,374,864 | - | - |
| 1985 | $28,905,736,367 | $84,169,395,855 | - | - |
| 1986 | $35,834,154,874 | $87,696,215,125 | - | - |
| 1987 | $43,049,543,635 | $93,957,471,742 | - | - |
| 1988 | $52,650,948,910 | $96,691,649,504 | - | - |
| 1989 | $52,443,479,454 | $97,247,381,691 | - | - |
| 1990 | $62,016,729,541 | $104,361,221,373 | - | - |
| 1991 | $70,998,755,007 | $112,424,289,466 | - | - |
| 1992 | $79,457,685,757 | $121,147,589,382 | - | - |
| 1993 | $79,855,877,174 | $126,134,940,469 | - | - |
| 1994 | $90,740,103,829 | $135,504,048,695 | $2,843,300,000 | $5,057,700,000 |
| 1995 | $105,497,418,059 | $144,451,278,945 | $3,282,800,000 | $5,417,700,000 |
| 1996 | $115,116,595,545 | $152,886,422,507 | $3,409,600,000 | $5,483,500,000 |
| 1997 | $119,459,826,347 | $158,409,209,239 | $3,759,800,000 | $6,287,800,000 |
| 1998 | $120,547,409,279 | $164,922,938,836 | $4,067,800,000 | $7,189,100,000 |
| 1999 | $121,417,185,062 | $170,360,909,595 | $4,271,200,000 | $7,784,400,000 |
| 2000 | $136,512,300,542 | $184,981,435,200 | $4,313,600,000 | $7,118,400,000 |
| 2001 | $135,002,039,613 | $185,495,549,158 | $4,003,700,000 | $6,455,600,000 |
| 2002 | $125,332,331,884 | $185,246,850,388 | $3,555,800,000 | $5,649,400,000 |
| 2003 | $131,408,914,824 | $187,931,184,127 | $3,968,000,000 | $6,441,200,000 |
| 2004 | $140,047,984,605 | $196,666,032,830 | $4,603,100,000 | $7,853,400,000 |
| 2005 | $147,519,922,009 | $205,295,323,131 | $5,125,700,000 | $8,740,100,000 |
| 2006 | $158,900,547,825 | $216,795,201,343 | $5,348,300,000 | $8,653,000,000 |
| 2007 | $184,681,214,673 | $230,503,919,634 | $5,815,700,000 | $8,980,800,000 |
| 2008 | $221,231,658,863 | $237,930,977,208 | $7,310,400,000 | $9,648,000,000 |
| 2009 | $213,403,181,853 | $240,875,924,093 | $8,085,700,000 | $10,477,100,000 |
| 2010 | $239,679,036,634 | $254,206,817,527 | $9,681,500,000 | $11,082,400,000 |
| 2011 | $268,094,998,225 | $268,235,973,748 | $11,186,100,000 | $12,146,400,000 |
| 2012 | $263,589,172,712 | $274,800,159,647 | $12,208,400,000 | $12,886,900,000 |
| 2013 | $298,478,070,673 | $286,027,695,014 | $13,515,500,000 | $13,492,400,000 |
| 2014 | $315,017,088,117 | $296,827,610,046 | $13,989,700,000 | $13,471,100,000 |
| 2015 | $303,469,434,072 | $303,469,434,072 | $13,972,400,000 | $13,972,400,000 |
| 2016 | $321,940,971,558 | $317,003,511,449 | $15,405,400,000 | $15,211,000,000 |
| 2017 | $358,451,839,053 | $330,783,435,889 | $16,128,000,000 | $15,426,900,000 |
| 2018 | $376,299,083,108 | $344,027,669,320 | $16,276,600,000 | $15,616,200,000 |
| 2019 | $400,645,216,359 | $356,792,803,356 | $17,133,500,000 | $15,829,000,000 |
| 2020 | $410,768,352,658 | $349,579,824,803 | $15,531,700,000 | $14,037,400,000 |
| 2021 | $489,851,549,972 | $382,399,686,302 | $18,109,000,000 | $15,021,700,000 |
| 2022 | $525,181,008,026 | $406,350,386,042 | $19,165,500,000 | $15,635,000,000 |
| 2023 | $512,184,638,999 | $413,772,459,124 | $17,847,900,000 | $14,922,700,000 |
| 2024 | $540,379,921,262 | $417,380,424,316 | $13,711,100,000 | $10,959,600,000 |
Economic indicators
|
Israel
|
Palestine
|
|
|---|---|---|
| Gross domestic product |
$540B
2024 |
$13.7B
2024 |
| GDP rank |
28/197
2024 |
146/197
2024 |
| GDP growth |
5.5%
2023-2024 |
-23.2%
2023-2024 |
| GDP per capita |
$54,177
2024 |
$2,592
2024 |
| GDP per capita rank |
21/197
2024 |
147/197
2024 |
| GDP per capita, PPP |
$55,691
2024 |
$4,371
2024 |
| Government debt |
$367B
2024 |
n/a |
| Debt-to-GDP ratio |
69.1%
2025 |
n/a |
| Government debt per person |
$36,774
2024 |
n/a |
| Government debt per person rank |
18/185
2024 |
n/a |
| Average annual personal income after taxes |
$39,091
2025 |
$7,705
2025 |
| Market capitalization of domestic companies |
$331B
2024 |
$4.08B
2024 |
| Number of millionaires |
179,905
2024 |
n/a |
| Number of billionaires |
41
2025 |
n/a |
| Income share by richest 10% |
26.6%
2021 |
27.1%
2023 |
| Income share by poorest 10% |
2%
2021 |
2.5%
2023 |
| Government expenditure, % of GDP |
41.9%
2025 |
20%
2025 |
| Consumer prices inflation |
3.07%
2023-2024 |
53.7%
2023-2024 |
| Central bank interest rate |
4.5%
2024 |
n/a |
| Unemployment rate |
2.9%
2024 |
31.4%
2024 |
| Population |
10224104
|
5459557
|
GDP per capita in Israel vs Palestine
Israel's GDP per capita is $54,177, ranking 21/197, compared to $2,592 in Palestine, ranking 147/197. Adjusted for purchasing power (GDP per capita PPP), Israel ranks 36th at $55,691, while Palestine ranks 163rd at $4,371.
| Year | Current $ | |||
|---|---|---|---|---|
|
Israel
|
Palestine
|
|||
| GDP per capita | GDP per capita, PPP | GDP per capita | GDP per capita, PPP | |
| 1960 | $1,452 | - | - | - |
| 1961 | $1,697 | - | - | - |
| 1962 | $1,294 | - | - | - |
| 1963 | $1,486 | - | - | - |
| 1964 | $1,626 | - | - | - |
| 1965 | $1,689 | - | - | - |
| 1966 | $1,789 | - | - | - |
| 1967 | $1,735 | - | - | - |
| 1968 | $1,947 | - | - | - |
| 1969 | $2,189 | - | - | - |
| 1970 | $2,490 | - | - | - |
| 1971 | $2,298 | - | - | - |
| 1972 | $2,930 | - | - | - |
| 1973 | $3,631 | - | - | - |
| 1974 | $5,085 | - | - | - |
| 1975 | $4,672 | - | - | - |
| 1976 | $4,516 | - | - | - |
| 1977 | $5,053 | - | - | - |
| 1978 | $4,797 | - | - | - |
| 1979 | $5,972 | - | - | - |
| 1980 | $6,549 | - | - | - |
| 1981 | $6,795 | - | - | - |
| 1982 | $7,258 | - | - | - |
| 1983 | $7,960 | - | - | - |
| 1984 | $7,369 | - | - | - |
| 1985 | $6,829 | - | - | - |
| 1986 | $8,335 | - | - | - |
| 1987 | $9,853 | - | - | - |
| 1988 | $11,853 | - | - | - |
| 1989 | $11,608 | - | - | - |
| 1990 | $13,308 | $15,697 | - | - |
| 1991 | $14,346 | $16,461 | - | - |
| 1992 | $15,510 | $17,526 | - | - |
| 1993 | $15,179 | $18,190 | - | - |
| 1994 | $16,807 | $19,448 | $1,202 | $2,201 |
| 1995 | $19,026 | $20,610 | $1,327 | $2,302 |
| 1996 | $20,224 | $21,653 | $1,317 | $2,269 |
| 1997 | $20,469 | $22,281 | $1,389 | $2,530 |
| 1998 | $20,189 | $22,913 | $1,465 | $2,852 |
| 1999 | $19,823 | $23,415 | $1,499 | $3,052 |
| 2000 | $21,707 | $25,783 | $1,476 | $2,783 |
| 2001 | $20,966 | $25,813 | $1,336 | $2,515 |
| 2002 | $19,076 | $26,101 | $1,156 | $2,179 |
| 2003 | $19,643 | $24,678 | $1,258 | $2,469 |
| 2004 | $20,568 | $26,071 | $1,422 | $3,014 |
| 2005 | $21,287 | $25,701 | $1,544 | $3,372 |
| 2006 | $22,527 | $26,366 | $1,570 | $3,354 |
| 2007 | $25,721 | $28,266 | $1,664 | $3,486 |
| 2008 | $30,269 | $28,084 | $2,035 | $3,713 |
| 2009 | $28,508 | $28,097 | $2,192 | $3,950 |
| 2010 | $31,439 | $29,456 | $2,557 | $4,121 |
| 2011 | $34,523 | $31,314 | $2,881 | $4,495 |
| 2012 | $33,321 | $32,484 | $3,067 | $5,215 |
| 2013 | $37,034 | $34,827 | $3,315 | $5,288 |
| 2014 | $38,343 | $34,816 | $3,352 | $5,382 |
| 2015 | $36,213 | $35,869 | $3,272 | $5,770 |
| 2016 | $37,672 | $38,189 | $3,528 | $6,062 |
| 2017 | $41,138 | $39,471 | $3,620 | $6,107 |
| 2018 | $42,363 | $40,190 | $3,562 | $6,216 |
| 2019 | $44,251 | $41,325 | $3,657 | $6,508 |
| 2020 | $44,576 | $40,955 | $3,234 | $5,956 |
| 2021 | $52,271 | $46,162 | $3,679 | $5,663 |
| 2022 | $54,950 | $53,564 | $3,800 | $6,163 |
| 2023 | $52,004 | $53,401 | $3,455 | $5,950 |
| 2024 | $54,177 | $55,691 | $2,592 | $4,371 |
Inflation comparison by year
Over the past 28 years, Israel has recorded an average annual inflation rate of 2.25%, compared with 4.9% in Palestine. In 2024, inflation was 3.07% in Israel and 53.7% in Palestine.
| Year | Inflation | ||
|---|---|---|---|
|
Israel
|
Palestine
|
Israel
|
Palestine
|
| 1996 | 11.5% | - | |
| 1997 | 8.95% | 7.09% | |
| 1998 | 5.49% | 5.58% | |
| 1999 | 5.19% | 5.54% | |
| 2000 | 1.03% | 2.8% | |
| 2001 | 1.12% | 1.22% | |
| 2002 | 5.8% | 5.71% | |
| 2003 | 0.71% | 4.4% | |
| 2004 | -0.42% | 3% | |
| 2005 | 1.34% | 4.11% | |
| 2006 | 2.05% | 3.84% | |
| 2007 | 0.47% | 1.86% | |
| 2008 | 4.53% | 9.89% | |
| 2009 | 3.37% | 2.75% | |
| 2010 | 2.7% | 3.75% | |
| 2011 | 3.49% | 2.88% | |
| 2012 | 1.68% | 2.78% | |
| 2013 | 1.59% | 1.72% | |
| 2014 | 0.47% | 1.73% | |
| 2015 | -0.62% | 1.43% | |
| 2016 | -0.54% | -0.22% | |
| 2017 | 0.25% | 0.21% | |
| 2018 | 0.81% | -0.2% | |
| 2019 | 0.82% | 1.58% | |
| 2020 | -0.58% | -0.74% | |
| 2021 | 1.48% | 1.24% | |
| 2022 | 4.41% | 3.74% | |
| 2023 | 4.23% | 5.87% | |
| 2024 | 3.07% | 53.7% | |
Top exports between countries
|
Israel
|
|
|---|---|
| Export category | Export value |
|
Palestine
|
|
|---|---|
| Export category | Export value |
| Textiles & consumer goods | $284M |
| Raw materials & minerals | $235M |
| Metals | $224M |
| Chemicals & pharma | $183M |
| Processed food, beverages & tobacco | $135M |
| Machinery & equipment | $82.1M |
| Wood & paper products | $63.2M |
| Raw agricultural goods | $60.2M |
| Animal & marine products | $8.4M |
| Miscellaneous | $2.47M |
Balance of trade
|
Israel
|
Palestine
|
|
|---|---|---|
Current account balance
|
$16.7B
2024 |
-$2.9B
2024 |
| Current account balance ranking |
21/189
2024 |
152/189
2024 |
| Current account balance, % of GDP |
+3.09%
2024 |
-21.1%
2024 |
| Goods imports |
$96.5B
2024 |
$6.87B
2024 |
| Goods exports |
$70.2B
2024 |
$2.37B
2024 |
| Service imports |
$43.9B
2024 |
$1.39B
2024 |
| Service exports |
$83B
2024 |
$514M
2024 |
| Imports of goods and services, % of GDP |
26%
2024 |
60.3%
2024 |
| Exports of goods and services, % of GDP |
28.4%
2024 |
21%
2024 |
Economic freedom indices
The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.
|
Israel
|
Palestine
|
|
|---|---|---|
| Economic freedom | 69.9 | 30 |
| Economic freedom ranking | 37/197 | 192/197 |
| Property rights | 77.2 | n/a |
| Government integrity | 63.9 | n/a |
| Judicial effectiveness | 68.1 | n/a |
| Tax burden | 60.8 | n/a |
| Government spending | 55.6 | n/a |
| Fiscal health | 81.7 | n/a |
| Business freedom | 73.4 | n/a |
| Labor freedom | 58.3 | n/a |
| Monetary freedom | 77.3 | n/a |
| Trade freedom | 82.8 | n/a |
| Investment freedom | 70 | n/a |
| Financial freedom | 70 | n/a |
More economic indicators
|
Israel
|
Palestine
|
|
|---|---|---|
| Services, % of GDP |
72.5%
2024 |
58.3%
2022 |
| Industry, % of GDP |
17.3%
2024 |
17.4%
2022 |
| Agriculture, forestry, and fishing, % of GDP |
1.28%
2024 |
5.75%
2022 |
|
GNI, Atlas method
|
$528B
2024 |
$16.3B
2024 |
| GNI per capita, PPP |
$55,250
2024 |
$5,310
2024 |
| Total reserves including gold |
$215B
2024 |
$1.33B
2024 |
| Total reserves ranking |
18/177
2024 |
138/177
2024 |
|
Net foreign direct investment
|
-$6.33B
2024 |
-$151M
2024 |
|
Net inflows of foreign direct investment
|
$14.8B
2024 |
$162M
2024 |
|
Net outflows of foreign direct investment
|
$9.92B
2024 |
$10.7M
2024 |
| Poverty at national poverty lines |
22%
2020 |
29.2%
2016 |
|
Gross capital formation, % of GDP
|
23.4%
2024 |
23.5%
2024 |
GDP per capita map
GDP per capita
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Economy comparisons
The current account balance is the sum of net trade in goods and services, net earnings from cross-border investments, and net transfer payments. It reflects a country's economic transactions with the rest of the world and is a fundamental component of the balance of payments. A surplus indicates that a country exports more than it imports, while a deficit shows the opposite.
Gross National Income (GNI) measures a country's total income. It encompasses income earned by residents, businesses, and foreign sources, defined as employee compensation and investment profits. GNI adds product taxes not included elsewhere and subtracts subsidies. It accounts for income from residents working abroad but excludes earnings from foreigners within the country.
A negative value for Net Foreign Direct Investment indicates a country is a net receiver of investments, as foreign inflows exceed outflows after Balance of Payments adjustments. A positive value indicates a net provider, with outflows exceeding inflows. Inflows are credits (increasing foreign claims on domestic assets), while outflows are debits (increasing domestic assets abroad).
Foreign direct investment (FDI, net inflows) shows how much capital foreign investors bring into a country after accounting for any funds that flow back in the opposite direction. It represents the net value of overseas companies establishing, expanding, or financing businesses in the reporting country. A positive number means more capital entered the country than was withdrawn, while a negative number means foreign investors pulled out more than they invested.
Foreign direct investment (FDI, net outflows) shows how much capital residents of a country invest abroad after accounting for any funds that flow back in the opposite direction. It represents the net value of domestic companies establishing, expanding, or financing businesses in other countries. A positive number means more capital was invested abroad than withdrawn, while a negative number means residents pulled back more than they invested.
Formerly gross domestic investment, gross capital formation measures the share of a country’s economic output invested in fixed assets, including buildings, machinery, and infrastructure. It indicates how much of the economy is devoted to building productive capacity.