June 15, 2024
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June 15, 2024
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Linking Northern and Central NJ, Bronx, Manhattan, Westchester and CT

NJ, Israel Enjoy Robust Economic Relations

New data shows annual New Jersey-Israel trade valued at $1.72 billion with continued strong growth in job creation and foreign direct investment ahead of Israel’s 75th anniversary.

(Courtesy of N.J. Dept. of State) 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.

Israeli companies that are new and expanding 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 that was won by Choose New Jersey and established a new business attraction office in March of 2023, based in Tel Aviv.

New Jersey’s strengths 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.

Additionally, 2022 showed another strong year-to-year increase in both trade and FDI between New Jersey and Israel. Metrics also show sustained growth in trade, investment, job creation and state exports.

In 2022 there were two new projects that originated from Israel and were completed in New Jersey, valued at $41.9 million in capital expenditures with an estimated creation of 215 jobs.

This year’s economic statistics point to the continued trend of growth with Israel that has emerged since the beginning of the Murphy Administration in 2018:

  • 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 to 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%.

The increases in overall trade along with sustained investment continue to demonstrate the strength of New Jersey-Israel economic relations and consistent growth over the past five years despite economic turbulence. Israeli investments into New Jersey prove that the Garden State is a key focal point for the Israeli business community and innovation entering the U.S.

Since the beginning of data being tracked in 2003, Israeli investment into New Jersey is valued at approximately $551 million which led to the creation of 1,900 jobs.

Despite the substantial increase in economic activity, the New Jersey-Israel Commission remains committed to promoting our state’s key relationship with Israel even further, which is fostering innovation, investment, jobs and business opportunities across critical industries, including through announcements made beyond the 2021-2022 data.

In 2019 Governor Murphy and New Jersey Secretary of State Tahesha Way announced a renewal of the New Jersey-Israel Commission, which supports trade; builds strategic partnerships in areas like cyber security, aerospace, food innovation, and life sciences; encourages tourism; facilitates academic partnerships; and more.

“As our state’s economy continues to grow, I am glad that we are doing so with our partners in Israel,” said Governor Murphy. “New Jersey is home to many great companies, and we cherish their unique contributions and investments to each of our communities. We look forward to continuing this relationship with our counterparts in Israel and will continue to do what we can to support their expanding business in our state.”

“I am proud to see another strong year of trade growth between New Jersey and Israel,” said Secretary of State Way. “I applaud the New Jersey-Israel Commission for its work in supporting and strengthening this key relationship and encouraging shared economic opportunities.”

“It is great to see this year’s economic statistics reflect the significant growth in Israel and New Jersey’s bilateral economic ties across all categories—import, export and a substantial FDI into New Jersey,” said Anat Katz, Israel economic minister to North America. “Israeli investment in New Jersey is making an impact on its economy and supporting job creation, while providing a strong base and foundation for further growth in the United States for Israeli companies—a true win-win situation. We are thankful to Governor Murphy for his leadership, continuous support of Israel and commitment to further our bilateral economic ties via the highly active and effective New Jersey-Israel Commission.”

“The historic levels of economic activity we are seeing with Israel parallel the strong efforts and dedication Governor Murphy and Secretary Way have put into this relationship,” said Karin Elkis, co-chair, New Jersey-Israel Commission. “I am proud of these groundbreaking numbers as we continue to focus on deepening these ties even further.”

“We see yet another year of outstanding trade achievement with Israel, reflecting the tremendous importance of our bilateral economic relationship as we celebrate 75 years of United States–Israel relations,” said Mark S. Levenson, co-chair, New Jersey-Israel Commission. “The investment and job creation in New Jersey from Israeli businesses and investors are not only tangible, but have an important impact on the lives and economic well-being of people across our great state.”

“The data continues to prove that Governor Murphy’s insightful approach to leveraging the legacy in innovation shared by New Jersey and Israel is bearing fruit,” said NJEDA Chief Executive Officer Tim Sullivan. “Since the governor’s trade mission to Israel in 2018, the steady increase in economic ties between New Jersey and Israel has affirmed the Garden State’s broad appeal for Israeli companies seeking a dynamic and supportive place to put down roots and grow.”

“The relationship between Israel and New Jersey continues to deliver significant benefits to both economies,” said Israel Nitzan, acting consul general of Israel in New York. “We thank our partners in New Jersey for their dedication and support. I am proud of the concrete progress we continue to make together, and, as we celebrate the 75th year of Israeli independence and U.S.-Israel relations, deeply optimistic for the future of this relationship.”

“New Jersey demonstrates yet again that it is a powerhouse for attracting investment and prominent companies from Israel, a key source of innovation in the world,” said Andrew H Gross, executive director of the New Jersey-Israel Commission. “The Murphy administration and this commission remain dedicated to deepening economic ties with Israel and we are seeing the dividends being paid with these vast gains and successes.”

“The growing economic ties between Israel and New Jersey reaffirm what we knew when we opened the New Jersey Israel Center in March: Israel is a vital global partner for our state,” said Wes Mathews, president and CEO of Choose New Jersey. “Trade and investment flows between our states have grown since the start of the Murphy Administration, and today’s announcement will undoubtedly encourage more businesses to tap into the vibrant ecosystems of our economies.”

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