Large defense budget. History of regional and internal instability inhibits foreign investment. Little trade with Arab neighbors. Profile Progress in the peace negotiations with Syria would be a huge boost to the economy. Public companies are being privatized and there are plans to end restrictive labor practices.
Agriculture is highly specialized and profitable.
The state is now aiming to boost the service sector. Despite a world recession, Israel's economy has continued to expand in the 1990s. The engine of this continued growth has been the mass immigration of Jews, many highly educated, from the former Soviet Union. Although unemployment levels have risen as a result of immigration, new skills and contacts have also helped the Israeli economy toward sustained export-led growth.