From Agriculture to High-Tech

The evolution of Israel's economy.

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The Recession

The economic boom-times came to an abrupt end in the year 2001. The collapse had two immediate causes: the NASDAQ crash in New York all but stopped the investment capital that had been flowing in to Israeli start-ups, and the new Palestinian Intifada frightened visitors away from the country. The recession lasted until the first half of 2003, when the global market began to recover. Israel experienced only a minor recession in 2008-2009 as a result of the global financial crisis, making it one of the most resilient economies in the world according to international ratings.

The future of Israel's economy will depend a lot on the state of the world economy as well as on the status of political relations between Israel and the Palestinians.

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Ziv Hellman is a Jerusalem-based writer and mathematician. A former editor at the Jerusalem Post, Ziv was a founding member of Peace Watch--the watchdog group reporting on the implementation of the Oslo Agreements. He also led the Israeli elections observer team evaluating the Palestinian Authority elections.