Following World War II, Britain withdrew from its mandate of Palestine, and the UN proposed partitioning the area into Arab and Jewish states, an arrangement rejected by the Arabs. Nonetheless, an Israeli state was declared in 1948, and Israel subsequently defeated the Arab armies in a series of wars that did not end deep tensions between the two sides. (The territories Israel has occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted.) On 25 April 1982, Israel withdrew from the Sinai Peninsula pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, Israel conducted bilateral negotiations with Palestinian representatives and Syria to achieve a permanent settlement with each. Israel and Palestinian officials on 13 September 1993 signed a Declaration of Principles (also known as the "Oslo Accords"), enshrining the idea of a two-state solution to their conflict and guiding an interim period of Palestinian self-rule. The parties achieved six additional significant interim agreements between 1994 and 1999 aimed at creating the conditions for a two-state solution, but most were never fully realized. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Peace Treaty.

Progress toward a final status agreement with the Palestinians was undermined by Israeli-Palestinian violence between 2001 and February 2005. Israel in 2005 unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council in 2006 temporarily froze relations between Israel and the Palestinian Authority (PA). Israel engaged in a 34-day conflict with Hizballah in Lebanon from July-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip from December 2008-January 2009. In November 2012, Israel engaged in a seven-day conflict with HAMAS in the Gaza Strip. Direct talks with the Palestinians most recently launched in July 2013 but were suspended in April 2014. The talks represented the fourth concerted effort to resolve final status issues between the sides since they were first discussed at Camp David in 2000. Three months later HAMAS and other militant groups launched rockets into Israel, which led to a 51-day conflict between Israel and militants in Gaza.

Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon

31 30 N, 34 45 E

Middle East

slightly larger than New Jersey

273 km

temperate; hot and dry in southern and eastern desert areas

Negev desert in the south; low coastal plain; central mountains; Jordan Rift Valley

highest point: Har Meron 1,208 m

timber, potash, copper ore, natural gas, phosphate rock, magnesium bromide, clays, sand

arable land 13.7%; permanent crops 3.8%; permanent pasture 6.3%

2,250 sq km (2012)

population concentrated in and around Tel-Aviv, as well as around the Sea of Galilee; the south remains sparsely populated with the exception of the shore of the Gulf of Aqaba

sandstorms may occur during spring and summer; droughts; periodic earthquakes

limited arable land and natural freshwater resources pose serious constraints; desertification; air pollution from industrial and vehicle emissions; groundwater pollution from industrial and domestic waste, chemical fertilizers, and pesticides

Lake Tiberias (Sea of Galilee) is an important freshwater source; the Dead Sea is the second saltiest body of water in the world (after Lake Assal in Djibouti); in 2014, there were 423 settlements in the Israeli-occupied territories - 42 settlements in the Golan Heights, 381 sites in the occupied Palestinian territories to include 212 settlements and 134 outposts in the West Bank, and 35 settlements in East Jerusalem; there are no Israeli settlements in the Gaza Strip because all were evacuated in 2005 (2014 est.)

8,174,527 (includes populations of the Golan Heights of Golan Sub-District and also East Jerusalem, which was annexed by Israel after 1967) (July 2016 est.)

Jewish 74.8% (of which Israel-born 75.6%, Europe/America/Oceania-born 16.6%, Africa-born 4.9%, Asia-born 2.9%), non-Jewish 25.2% (mostly Arab) (2015 est.)

Hebrew (official), Arabic (used officially for Arab minority), English (most commonly used foreign language)

Jewish 74.8%, Muslim 17.6%, Christian 2%, Druze 1.6%, other 4% (2015 est.)

1.53% (2016 est.)

18.3 births/1,000 population (2016 est.)

5.2 deaths/1,000 population (2016 est.)

2.2 migrant(s)/1,000 population (2016 est.)

population concentrated in and around Tel-Aviv, as well as around the Sea of Galilee; the south remains sparsely populated with the exception of the shore of the Gulf of Aqaba

Tel Aviv-Yafo 3.608 million; Haifa 1.097 million; JERUSALEM (proclaimed capital) 839,000 (2015)

27.3 (2011 est.)

5 deaths/100,000 live births (2015 est.)

2.66 children born/woman (2016 est.)

7.8% of GDP (2014)

3.34 physicians/1,000 population (2012)

3.3 beds/1,000 population (2012)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

NA

NA

NA

25.8% (2014)

5.9% of GDP (2013)

parliamentary democracy

6 districts (mehozot, singular - mehoz); Central, Haifa, Jerusalem, Northern, Southern, Tel Aviv

14 May 1948 (from League of Nations mandate under British administration)

Independence Day, 14 May (1948); note - Israel declared independence on 14 May 1948, but the Jewish calendar is lunar and the holiday may occur in April or May

no formal constitution; some functions of a constitution are filled mostly by the Declaration of Establishment (1948), the Basic Laws, and the Law of Return (as amended); Basic Laws amended several times, last in 2014 (2016)

mixed legal system of English common law, British Mandate regulations, and Jewish, Christian, and Muslim religious laws

has not submitted an ICJ jurisdiction declaration; withdrew acceptance of International Criminal Court jurisdiction in 2002

18 years of age; universal

Balad [Jamal ZAHALKA]

Democratic Front for Peace and Equality (HADASH) [ODEH]

Kulanu [Moshe KAHLON]

Labor [Yitzhak HERZOG]

Likud [Binyamin NETANYAHU]

Meretz [Zehava GALON]

SHAS [Arye DERI]

Tekumah/National Union (Ichud Leumi) [Uri ARIEL]

The Jewish Home (Habayit Hayehudi) [Naftali BENNETT]

The Movement (Hatnuah) [Tzipora "Tzipi" LIVNI]

United Arab List-Ta'al [Masud GANAIM]

United Torah Judaism or UTJ [Yaakov LITZMAN] (an alliance of three parties)

Yesh Atid [Yair LAPID]

Yisrael Beiteinu [Avigdor LIEBERMAN]

Breaking the Silence [Yehuda SHAUL, executive director] collects testimonies from soldiers who served in the West Bank and Gaza Strip

B'Tselem [Hagai EL-AD, executive director] monitors human rights abuses

Peace Now [Yariv OPPENHEIMER, secretary general] supports territorial concessions in the West Bank and Gaza Strip

YESHA Council [Avi ROEHD, chairman] promotes settler interests and opposes territorial compromise

BIS, BSEC (observer), CE (observer), CERN, CICA, EBRD, FAO, IADB, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, OAS (observer), OECD, OPCW (signatory), OSCE (partner), Pacific Alliance (observer), Paris Club, PCA, SELEC (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

white with a blue hexagram (six-pointed linear star) known as the Magen David (Star of David or Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag; the basic design resembles a traditional Jewish prayer shawl (tallit), which is white with blue stripes; the hexagram as a Jewish symbol dates back to medieval times

Star of David (Magen David), menorah (seven-branched lampstand); national colors: blue, white

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows.

Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects.

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% per year during 2014-15. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers have kept food prices high through 2015.

In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

$281.9 billion (2015 est.)

$274.8 billion (2014 est.)

$268 billion (2013 est.)

$296.1 billion (2015 est.)

2.6% (2015 est.)

2.6% (2014 est.)

3.3% (2013 est.)

$33,700 (2015 est.)

$33,500 (2014 est.)

$33,300 (2013 est.)

24.4% of GDP (2015 est.)

23.9% of GDP (2014 est.)

23.5% of GDP (2013 est.)

citrus, vegetables, cotton; beef, poultry, dairy products

high-technology products (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metal products, chemical products, plastics, cut diamonds, textiles, footwear

3.2% (2015 est.)

3.846 million (2015 est.)

5.3% (2015 est.)

5.9% (2014 est.)

22%

42.8 (2013)

39.2 (2008)

26.1% of GDP (2015 est.)

-2.1% of GDP (2015 est.)

63.3% of GDP (2015 est.)

65.9% of GDP (2014 est.)

calendar year

-0.6% (2015 est.)

0.5% (2014 est.)

0.1% (15 December 2015)

0.25% (31 December 2014)

3.46% (31 December 2015 est.)

3.91% (31 December 2014 est.)

$63.41 billion (31 December 2015 est.)

$43.13 billion (31 December 2014 est.)

$246 billion (31 December 2014 est.)

$155.6 billion (31 December 2013 est.)

$211.6 billion (31 December 2015 est.)

$201.2 billion (31 December 2014 est.)

$183.4 billion (31 December 2015 est.)

$148.8 billion (31 December 2014 est.)

$122.9 billion (31 December 2013 est.)

$12.27 billion (2015 est.)

$11.54 billion (2014 est.)

$56.29 billion (2015 est.)

$63.76 billion (2014 est.)

machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel

US 27.5%, Hong Kong 8%, UK 6.1%, China 4.9% (2015)

$59.49 billion (2015 est.)

$70.36 billion (2014 est.)

raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods

US 13%, China 9.3%, Switzerland 7.1%, Germany 6.1%, Belgium 5.3%, Italy 4% (2015)

$90.58 billion (31 December 2015 est.)

$86.1 billion (31 December 2014 est.)

$89.36 billion (31 December 2015 est.)

$96.13 billion (31 December 2014 est.)

$104.1 billion (31 December 2015 est.)

$93.28 billion (31 December 2014 est.)

$89.39 billion (31 December 2015 est.)

$79.69 billion (31 December 2014 est.)

new Israeli shekels (ILS) per US dollar -

3.8869 (2015 est.)

3.5779 (2014 est.)

3.5779 (2013 est.)

3.86 (2012 est.)

3.5781 (2011 est.)

57 billion kWh (2014 est.)

59.83 billion kWh (2014 est.)

4.8 billion kWh (2014 est.)

0 kWh (2013 est.)

16.25 million kW (2014 est.)

97.4% of total installed capacity (2014 est.)

0% of total installed capacity (2014 est.)

0% of total installed capacity (2014 est.)

2.6% of total installed capacity (2014 est.)

390 bbl/day (2015 est.)

0 bbl/day (2015 est.)

285,600 bbl/day (2015 est.)

13.95 million bbl (1 January 2016 es)

309,600 bbl/day (2015 est.)

224,700 bbl/day (2015 est.)

144,000 bbl/day (2015 est.)

68,920 bbl/day (2015 est.)

7.9 billion cu m (2014 est.)

7.98 billion cu m (2014 est.)

2.605 billion cu m (2011 est.)

80 million cu m (2014 est.)

199 billion cu m (1 January 2016 es)

62.5 million Mt (2014 est.)

state broadcasting network, operated by the Israel Broadcasting Authority (IBA), broadcasts on 2 channels, one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian, a channel broadcasting Knesset proceedings, and a music channel supervised by a public body; multi-channel satellite and cable TV packages provide access to foreign channels; IBA broadcasts on 8 radio networks with multiple repeaters and Israel Defense Forces Radio broadcasts over multiple stations; about 15 privately owned radio stations; overall more than 100 stations and repeater stations (2008)

.il

4X (2016)

47 (2013)

3 (2013)

gas 763 km; oil 442 km; refined products 261 km (2013)

Israel Defense Forces (IDF), Israel Naval Force (IN), Israel Air Force (IAF) (2010)

18 years of age for compulsory (Jews, Druze) military service; 17 years of age for voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 32 months for enlisted men and 24 months for enlisted women (varies based on military occupation), 48 months for officers; pilots commit to 9 years service; reserve obligation to age 41-51 (men), age 24 (women) (2015)

5.58% of GDP (2014)

5.53% of GDP (2013)

5.69% of GDP (2012)

5.87% of GDP (2011)

5.69% of GDP (2010)

West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region

increasingly concerned about ecstasy, cocaine, and heroin abuse; drugs arrive in country from Lebanon and, increasingly, from Jordan; money-laundering center