Another Year of Increased Economic Relations between New Jersey and Israel: 2021 to 2022
April 26, 2023
Trenton, NJ (April 24, 2023) — New Jersey Governor Phil Murphy and the New Jersey–Israel Commission are proud to announce another year of strong and increased economic growth between New Jersey and the State of Israel. Newly released data from the New Jersey Economic Development Authority (NJEDA) shows record investments and job creation under the Murphy Administration between 2021 and 2022. Ahead of Israel’s 75th anniversary and 75 years of United States-Israel relations, the figures demonstrate how New Jersey is successfully leveraging its relationship with Israel to pair its innovation economy with its well-established national leadership attracting Israeli investment.
New and expanding Israeli companies into New Jersey, particularly from the high-tech sector, are reflected in the new data. To increase and capitalize on this growth and expanded business development opportunities from Israel even further, the New Jersey-Israel Commission launched a grant in 2022 which was won by Choose New Jersey and established a new business attraction office in March of 2023, based in Tel Aviv.
New Jersey’s strength as a global logistics hub, strategic location, highly educated workforce, and advanced economy are key factors that connect these two internationally recognized sources of innovation.
Data from the U.S. Census Bureau’s Foreign Trade Division and FDI Markets shows a number of positive and key developments from 2021 to 2022:
- New Jersey-Israel total trade volume from 2021 to 2022 increased substantially by 11% from $1.55 billion to $1.72 billion. This is well above the average trade between New Jersey and other countries which increased by 1.9% last year.
- New Jersey exports to Israel saw growth of 8.5% from $461 million to $500 million.
- Israeli imports to New Jersey increased by 12% from approximately $1.1 billion to $1.2 billion.
- The growth in exports to Israel was especially notable in a year in which there was an average decline of 6.3% in exports to other countries, due to a leveling off following record amounts of exports in 2021 resulting from the COVID-19 pandemic.
- New Jersey maintained its second place rank in attracting 25% of foreign direct investment (FDI) from Israel in the Northeast.
- FDI from Israel multiplied more than five times during this period, worth an estimated $454 million, leading to the creation of 1,425 jobs, including through the entry of new Israeli companies into the State.
- Overall trade is up approximately $447 million from $311 million last year.
- Economic ties have grown approximately 36% with a 6.34% compound annual growth rate.
- Since FDI market records first started being kept in 2003, 82% of all recorded Israeli FDI and 74% of all Israeli FDI related job creation has come during the Murphy Administration.
- Exports to Israel from New Jersey have steadily increased by 49%.
About the New Jersey-Israel Commission
The New Jersey-Israel Commission was established in 1989 to implement the goals of the New Jersey-Israel Sister State Agreement and is under the administration of New Jersey Department of State. The Commission promotes the development of trade, culture and educational exchanges; encourages the development of capital investment and joint business ventures; and fosters a spirit of cooperation between the citizens of the State of Israel and the State of New Jersey.
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