Israel the world's second most innovative economy. The country's major economic sectors are high-technology and industrial manufacturing, the Israeli diamond industry is one of the world's centers for diamond cutting and polishing. The United States is the largest market accounting for 36% of overall export market for polished diamonds while Hong Kong remains at second with 28 percent and Belgium at 8 percent coming in third. Israel has a well-developed chemical industry with many of its products aimed at the export market. Israel is also one of the world's major exporters of military equipment.
Israeli exports totaled US $54.3 billion with a 4% increase and imported US $66.1 billion worth of goods in current year. The Bank of Israel expects gross domestic product (GDP) growth in the Israeli economy to increase by 3.2% in 2017 and by 3.1% in 2018.
Israel has a technologically advanced market economy that depends on imports of crude oil, grains, raw materials, and military equipment. Recent natural gas discoveries off the coast of Israel have been a positive development for Israel, which otherwise has limited natural resources.
Israel large potential is yet to be exploited, as it is a major factor in Israel's economic growth plan.