Introduction

Background: Following World War II, the British withdrew from their mandate of Palestine, and the UN partitioned the area into Arab and Jewish states, an arrangement rejected by the Arabs. Subsequently, the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories occupied by Israel since the 1967 war are not included in the Israel country profile, unless otherwise noted. On 25 April 1982, Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. Israel and Palestinian officials signed on 13 September 1993 a Declaration of Principles (also known as the "Oslo accords") guiding an interim period of Palestinian self-rule. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In addition, on 25 May 2000, Israel withdrew unilaterally from southern Lebanon, which it had occupied since 1982. In keeping with the framework established at the Madrid Conference in October 1991, bilateral negotiations were conducted between Israel and Palestinian representatives and Syria to achieve a permanent settlement. On 24 June 2002, US President BUSH laid out a "road map" for resolving the Israeli-Palestinian conflict, which envisions a two-state solution. However, progress toward a permanent status agreement has been undermined by Palestinian-Israeli violence ongoing since September 2000. The conflict may have reached a turning point with the election in January 2005 of Mahmud ABBAS as the new Palestinian leader following the November 2004 death of Yasir ARAFAT.

 

Geography

 

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

 

Geographic coordinates: 31 30 N, 34 45 E

 

Map references: Middle East

 

Area: total: 20,770 sq km; land: 20,330 sq km; water: 440 sq km

 

Area - comparative: slightly smaller than New Jersey

 

Land boundaries: total: 1,017 km; border countries: Egypt 266 km, Gaza Strip 51 km, Jordan 238 km, Lebanon 79 km, Syria 76 km, West Bank 307 km

 

Coastline: 273 km

 

Maritime claims: territorial sea: 12 nm; continental shelf: to depth of exploitation

 

Climate: temperate; hot and dry in southern and eastern desert areas

 

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

 

Elevation extremes: lowest point: Dead Sea -408 m; highest point: Har Meron 1,208 m

 

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

 

Land use: arable land: 16.39%; permanent crops: 4.17%; other: 79.44% (2001)

 

Irrigated land: 1,990 sq km (1998 est.)

 

Natural hazards: sandstorms may occur during spring and summer; droughts; periodic earthquakes

 

Environment - current issues: limited arable land and natural fresh water resources pose serious constraints; desertification; air pollution from industrial and vehicle emissions; groundwater pollution from industrial and domestic waste, chemical fertilizers, and pesticides

 

Environment - international agreements: party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Wetlands; signed, but not ratified: Marine Life Conservation

 

Geography - note: there are 242 Israeli settlements and civilian land use sites in the West Bank, 42 in the Israeli-occupied Golan Heights, 25 in the Gaza Strip, and 29 in East Jerusalem (February 2002 est.); Sea of Galilee is an important freshwater source

 

People

 

Population: 6,276,883; note: includes about 187,000 Israeli settlers in the West Bank, about 20,000 in the Israeli-occupied Golan Heights, more than 5,000 in the Gaza Strip, and fewer than 177,000 in East Jerusalem (July 2005 est.)

 

Age structure: 0-14 years: 26.5% (male 851,415/female 812,095); 15-64 years: 63.7% (male 2,010,888/female 1,986,256); 65 years and over: 9.8% (male 264,708/female 351,521) (2005 est.)

 

Median age: total: 29.39 years; male: 28.58 years; female: 30.27 years (2005 est.)

 

Population growth rate: 1.2% (2005 est.)

 

Birth rate: 18.21 births/1,000 population (2005 est.)

 

Death rate: 6.18 deaths/1,000 population (2005 est.)

 

Net migration rate: 0 migrant(s)/1,000 population (2005 est.)

 

Sex ratio: at birth: 1.05 male(s)/female; under 15 years: 1.05 male(s)/female; 15-64 years: 1.01 male(s)/female; 65 years and over: 0.75 male(s)/female; total population: 0.99 male(s)/female (2005 est.)

 

Infant mortality rate: total: 7.03 deaths/1,000 live births; male: 7.77 deaths/1,000 live births; female: 6.26 deaths/1,000 live births (2005 est.)

 

Life expectancy at birth: total population: 79.32 years; male: 77.21 years; female: 81.55 years (2005 est.)

 

Total fertility rate: 2.44 children born/woman (2005 est.)

 

HIV/AIDS - adult prevalence rate: 0.1% (2001 est.)

 

HIV/AIDS - people living with HIV/AIDS: 3,000 (1999 est.)

 

HIV/AIDS - deaths: 100 (2001 est.)

 

Nationality: noun: Israeli(s); adjective: Israeli

 

Ethnic groups: Jewish 80.1% (Europe/America-born 32.1%, Israel-born 20.8%, Africa-born 14.6%, Asia-born 12.6%), non-Jewish 19.9% (mostly Arab) (1996 est.)

 

Religions: Jewish 76.5%, Muslim 15.9%, Arab Christians 1.7%, other Christian 0.4%, Druze 1.6%, unspecified 3.9% (2003)

 

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

 

Literacy: definition: age 15 and over can read and write; total population: 95.4%; male: 97.3%; female: 93.6% (2003 est.)

 

Government

 

Country name: conventional long form: State of Israel; conventional short form: Israel; local long form: Medinat Yisra'el; local short form: Yisra'el

 

Government type: parliamentary democracy

 

Capital: Jerusalem; note - Israel proclaimed Jerusalem as its capital in 1950, but the US, like nearly all other countries, maintains its Embassy in Tel Aviv

 

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

 

Independence14 May 1948 (from League of Nations mandate under British administration):

 

National holiday: 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

Constitution: no formal constitution; some of the functions of a constitution are filled by the Declaration of Establishment (1948), the Basic Laws of the parliament (Knesset), and the Israeli citizenship law

 

Legal system: mixture of English common law, British Mandate regulations, and, in personal matters, Jewish, Christian, and Muslim legal systems; in December 1985, Israel informed the UN Secretariat that it would no longer accept compulsory ICJ jurisdiction

 

Suffrage: 18 years of age; universal

 

Executive branch: chief of state: President Moshe KATZAV (since 31 July 2000)

head of government: Prime Minister Ariel SHARON (since 7 March 2001); cabinet: Cabinet selected by prime minister and approved by the Knesset; elections: president is largely a ceremonial role and is elected by the Knesset for a seven-year term; election last held 31 July 2000 (next to be held mid-2007); following legislative elections, the president assigns a Knesset member - traditionally the leader of the largest party - the task of forming a governing coalition; election last held 28 January 2003 (next scheduled to be held fall of 2006); election results: Moshe KATZAV elected president by the 120-member Knesset with a total of 60 votes, other candidate, Shimon PERES, received 57 votes (there were three abstentions); Ariel SHARON continues as prime minister after Likud Party victory in January 2003 Knesset elections; Likud won 38 seats and then formed coalition government with Shinui, the National Religious Party, and the National Union

 

Legislative branch: unicameral Knesset (120 seats; members elected by popular vote to serve four-year terms); elections: last held 28 January 2003 (next scheduled to be held fall of 2006); election results: percent of vote by party - Likud Party 29.4%, Labor 14.5%, Shinui 12.3%, Shas 8.2%, National Union 5.5%, Meretz 5.2%, United Torah Judaism 4.3%, National Religious Party 4.2%, Democratic Front for Peace and Equality 3.0%, One Nation 2.8%, National Democratic Assembly 2.3%, Yisra'el Ba'Aliya (YBA) 2.2%, United Arab List 2.1%, Green Leaf Party 1.2%, Herut 1.2%, other 1.6%; seats by party - Likud 38, Labor 19, Shinui 15, Shas 11, National Union 7, Meretz 6, National Religious Party 6, United Torah Judaism 5, Democratic Front for Peace and Equality 3, One Nation 3, National Democratic Assembly 3, YBA 2, United Arab List 2

 

Judicial branch: Supreme Court (justices appointed for life by the president)

Political parties and leaders: Democratic Front for Peace and Equality (Hadash) [Muhammad BARAKA]; Green Leaf Party (no longer active) [Boaz WACHTEL and Shlomi SANDAK]; Herut (no longer active) [Michael KLEINER]; Labor Party [Shimon PERES]; Likud Party [Ariel SHARON]; Meretz (merged with YAHAD) [Zahava GALON]; National Democratic Assembly (Balad) [Azmi BISHARA]; National Religious Party [Ephraim "Efie" EITAM]; National Union (Haichud Haleumi) [Avigdor LIBERMAN] (includes Tekuma Moledet and Yisra'el Beiteinu); One Nation [David TAL]; Shas [Eliyahu YISHAI]; Shinui [Yosef "Tommy" LAPID]; United Arab List [Abd al-Malik DAHAMSHAH]; United Torah Judaism [Yaakov LITZMAN]; YAHAD [Yossi BEILIN]; Yisra'el Ba'Aliya or YBA (merged with Likud) [Natan SHARANSKY]

 

Economy

 

Economy - overview: Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy grew at 1% in 2003, with improvements in tourism and foreign direct investment. In 2004, rising business and consumer confidence - as well as higher demand for Israeli exports boosted GDP by 3.9%.

 

GDP: purchasing power parity - $129 billion (2004 est.)

 

GDP - real growth rate: 3.9% (2004 est.)

 

GDP - per capita: purchasing power parity - $20,800 (2004 est.)

 

GDP - composition by sector: agriculture: 2.8%; industry: 37.7%; services: 59.5% (2003 est.)

 

Labor force: 2.68 million (2004 est.)

 

Labor force - by occupation: agriculture, forestry, and fishing 2.6%, manufacturing 20.2%, construction 7.5%, commerce 12.8%, transport, storage, and communications 6.2%, finance and business 13.1%, personal and other services 6.4%, public services 31.2% (1996)

 

Unemployment rate: 10.7% (2004 est.)

 

Population below poverty line: 18% (2001 est.)

 

Household income or consumption by percentage share: lowest 10%: 2.4%; highest 10%: 28.3% (1997)

 

Distribution of family income - Gini index: 35.5 (2001)

 

Inflation rate (consumer prices): 0% (2004 est.)

 

Investment (gross fixed): 17.6% of GDP (2004 est.)

 

Budget: revenues: $48.09 billion; expenditures: $52.11 billion, including capital expenditures of NA (2004 est.)

 

Public debt: 104.5% of GDP (2004 est.)

 

Agriculture - products: citrus, vegetables, cotton; beef, poultry, dairy products

 

Industries: high-technology projects (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, metals products, chemical products, plastics, diamond cutting, textiles and footwear

 

Industrial production growth rate: 4.5% (2004 est.)

 

Electricity - production: 42.67 billion kWh (2002)

 

Electricity - consumption: 38.3 billion kWh (2002)

 

Electricity - exports: 1.387 billion kWh (2002)

 

Electricity - imports: 0 kWh (2002)

 

Oil - production: 80 bbl/day (2001 est.)

 

Oil - consumption: 260,000 bbl/day (2001 est.)

 

Oil - exports: NA

 

Oil - imports: NA

 

Oil - proved reserves: 1.92 million bbl (1 January 2002)

 

Natural gas - production: 10 million cu m (2001 est.)

 

Natural gas - consumption: 10 million cu m (2001 est.)

 

Natural gas - exports: 0 cu m (2001 est.)

 

Natural gas - imports: 0 cu m (2001 est.)

 

Natural gas - proved reserves: 20.81 billion cu m (1 January 2002)

 

Current account balance: $211.9 million (2004 est.)

 

Exports: $34.41 billion f.o.b. (2004 est.)

 

Exports - commodities: machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel

 

Exports - partners: US 36.8%, Belgium 7.5%, Hong Kong 4.9% (2004)

 

Imports: $36.84 billion f.o.b. (2004 est.)

 

Imports - commodities: raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods

 

Imports - partners: US 15%, Belgium 10.1%, Germany 7.5%, Switzerland 6.5%, UK 6.1% (2004)

 

Reserves of foreign exchange and gold: $28.48 billion (2004 est.)

 

Debt - external: $74.46 billion (2004 est.)

 

Economic aid - recipient: $662 million from US (2003 est.)

 

Currency (code): new Israeli shekel (ILS); note - NIS is the currency abbreviation; ILS is the International Organization for Standarization (ISO) code for the NIS