strongly as of late and are now growing at an even higher rate. The purchasing power parity (PPP) is estimated at $101.9 billion (Odci 7). The inflation rate on consumer prices is 5.4% (Odci 7). Israel has a technologically advanced market economy with substantial government participation (Odci 6). Israel has developed its agricultural and industrial sectors greatly over the past 20 years (Odci 7). Most of the people of Israel work in manufacturing and construction. The leading exports are high-technology equipment, diamonds, and agricultural products. Israel’s diamond exports have begun to grow greatly, to a total of 5.7 billion dollars (Bank 1). That is a 31% increase over 1998. The United States is one of Israel’s major export partners. 32% of Israel’s good are exported to the United States (Odci 7). The major imports are crude oil, grains, raw materials and military equipment. The United States is also one of Israel’s major import partners, they compose 19% of Israel’s total imports (Odci 7). Israel exports a total of 22.1 billion dollars and imports a total of 26.1 billion dollars (Odci 7). The debt of Israel is mainly owned by the United States, roughly more then half of it (Odci 7). The total debt owed by Israel is 18.7 billion dollars (Odci 7). The United States is the major source of economic and military aid to Israel. That is why the amount that is owes to the United States is so great. The United States gave more then 1.2 billion dollars in aid in 1997 (Odci 7). Israel has begun to open up to many nations. They joined the country General Agreement of Tariffs and Trade (GATT). Israel established a free trade area for industrial products with the European Union, and free trade for all products with the United States. This has all led to a much larger more profitable market for Israel. Israel now has the ability to make much more profits and better their economy. Israel is als...
