Israel's economy beats out world average, grows 7% in 2021

Dunn and Bradstreet report shows high-tech industry main catalyst for Israeli economic growth.

The Bank of Israel building is seen in Jerusalem June 16, 2020. (photo credit: REUTERS/RONEN ZEVULUN)
The Bank of Israel building is seen in Jerusalem June 16, 2020.
(photo credit: REUTERS/RONEN ZEVULUN)

Israel’s economy grew by seven percent in 2021, beating out the global average of 5.9%, a study by Dunn and Bradstreet that was released on Monday concludes. 

 “The entire global economy and the Israeli economy in particular, showed an improvement in economic and business indices in 2021, after in 2020, it was significantly affected by the coronavirus,” explained Efrat Segev, VP of Data and Analysis at Dun & Bradstreet. 

Dun & Bradstreet is a consulting company that provides commercial data, analytics, and insights for businesses

Segev said that the Israeli high-tech industry was the key source of growth for Israel in 2021. “The main task of the government and companies in the industry will be to see how this growth can permeate more,” she said. 

Efrat Segev, VP of Data and Analysis at Dun & Bradstreet (credit: NIV KANTOR)Efrat Segev, VP of Data and Analysis at Dun & Bradstreet (credit: NIV KANTOR)

While Israel scored impressive growth in 2021, India hit 9.5% and China marked 8% as well. 

According to the report, while the tech industry stimulated most of Israel's economic growth other industries suffered, including tourism, restaurants, entertainment and more. In addition, the company warned that there is a continued shortage of raw materials and difficulty in operating steady supply lines that has negatively impacted the construction sector as well as the automobile and electronics industries. 

Last month, the Central Bureau of Statistics said that Israel’s gross domestic product had increased by 2.4% in the third quarter of the year. Private consumption increased by 0.7% compared with the previous quarter. Exports increased by 7.5%, while imports increased by 2.7%, CBS said.

The Finance Ministry forecasts 4.7% growth in 2022, as private consumption and tax revenues continue to rise. The ministry had previously forecast 5.1% growth this year.