The Israeli economy has been lauded by some of the biggest names in the world of finance. A chief economist and head of the Global Competitiveness Network at the World Economic Forum, declared that Israel could “become one of the most prosperous countries in the world”. Bill Gates, Warren Buffet and Donald Trump have all invested significantly in Israel, with the latter declaring “Israel is one of my favorite places in the world.” This is made even more remarkable by the fact that Israel has no significant natural resources.

Israel has recently been invited to join the prestigious Organization for Economic Cooperation and Development (OECD). Israeli hi-tech is the envy of the world and was nicknamed ‘Silicon Wadi’. Israeli companies have recently enjoyed considerable success raising money on Wall Street and other world financial markets; Israel now ranks second among foreign countries in the number of its companies listed on U.S. stock exchanges.

Israel's chief exports to the U.S. include cut diamonds, jewelry, integrated circuits, printing machinery, and telecommunications equipment. Israel is also one of the world's major exporters of military equipment, accounting for 10% of the world total in 2007.

The economy is broken up into agriculture (2.6%), industry (30.8%) and services (66.6%). The country's GDP (Purchasing power parity) in 2006 reached $177 billion according to the World Bank. GDP per capita has been $30,464 according to the International Monetary Fund.

Incredibly, Israel recently baffled international economic experts by sustaining a growth economy even during the second Lebanon War. Recently, the balance of payments began to show a surplus for the first time in the country's history; inflation is low; the budget deficit is under control; and foreign capital is flowing into the country with investors eager for a stake in the economy, driving the value of the shekel up dramatically against the major currencies of the world.

The Government of Israel also considers Palestinian economic prosperity an important Israeli interest. Israel has created industrial zones for creating employment opportunities for many Palestinians and many thousands of Palestinians work in Israel daily. Israel also encourages investment in the Palestinian Authority and recently Israeli and Palestinian businessmen have created a joint business council for the benefit of all.