TRENTON – New Jersey Governor Phil Murphy and the New Jersey–Israel Commission today announced strong and sustained levels of economic growth between New Jersey and the State of Israel between 2020 and 2021. Despite a turbulent period caused by the global pandemic, significant increases in bilateral trade and investment are reflected in newly released data from the New Jersey Economic Development Authority (NJEDA). The figures show that New Jersey’s relationship with Israel is not only creating economic opportunity, but fortifying New Jersey’s innovation economy and positioning the state as a national leader in attracting investment from Israel.
“I am excited to see the overwhelmingly positive results of our efforts to deepen our economic relationship with Israel, its business leaders, and its people,” said Governor Phil Murphy. “Since my first trip to Israel as Governor in 2018, trade has increased significantly, with Israeli businesses opening up shop in New Jersey, universities forging new partnerships, and exports and imports quickly increasing. This reflects the great work of the New Jersey-Israel Commission, the NJEDA, Choose NJ, and many other partners in our vision to grow our state’s innovation economy.”
“The forty one percent growth of New Jersey’s exports to Israel is impressive and plays a critical role in our bilateral trade,” said New Jersey Secretary of State Tahesha Way. “I look forward to strengthening our special relationship with Israel – a key partner to our state and its business community.”
“Israel is proud of its relationship with the great state of New Jersey, showing meaningful collaborations pay off for all sides, with a focus on bettering the lives of everyday people,” said Ambassador Asaf Zamir, Consul General of Israel in New York. “The increase in economic relations between Israel and New Jersey is not only natural, but it shows why people-to-people relations needs to be a priority.”
New Jersey’s strength as a global logistics hub, strategic location, highly educated workforce, and advanced economy are helping to drive this key relationship between two international sources of innovation. Data from the U.S. Census Bureau’s Foreign Trade Division and Foreign Direct Investment (FDI) Markets shows several positive and key developments from 2020 to 2021:
- New Jersey-Israel total trade volume from 2020 to 2021 increased substantially by 16.2%, from $1.33B to $1.55B
- New Jersey exports to Israel saw significant growth by 41%, from $327M to $461M
- Israeli imports to New Jersey increased by 8%, from approximately $1.01B to $1.09B
- Exports from New Jersey to Israel grew at 10% more on average than to other countries
- New Jersey maintained its second place rank of attracting foreign direct investment (FDI) from Israel in the Northeast
- Israel’s export rank from New Jersey moved from 24th to 22nd place
2021 reinforced New Jersey-Israel economic ties with a year to year increase in both trade and Foreign Direct Investment (FDI). As both metrics rebound from the economic shock of the pandemic, it is clear that the bilateral relationship between New Jersey and Israel is as steady as ever.
Additionally, the new economic statistics point to a trend of growth with Israel that has emerged since the beginning of the Murphy Administration in 2018 through 2021:
- FDI from Israel multiplied four times during this period, worth an estimated $347.1M, leading to the creation of 1,120 jobs, including through the entry of new Israeli companies into the state
- Overall trade is up approximately $311M
- Since the beginning of FDI Markets records being kept in 2003, 78% of all recorded Israeli FDI and 69% of all Israeli FDI-related job creation has taken place during the Murphy Administration
Increased exports to Israel from New Jersey ports were led by consumer products, medical supplies, natural materials, and organic chemicals. Increased imports from Israel included energy supplies, natural materials, and minerals.
The increases in overall trade along with sustained investment continue to demonstrate the strength of New Jersey-Israel economic relations and sustained growth over the past four years alongside global economic recovery following the COVID-19 pandemic. Israeli investments into New Jersey also showcases the Garden State as a focal point for innovative Israeli products and companies entering the U.S.
“Increased trade and investment flows are a testament to the enduring strength of the New Jersey-Israel relationship,” said Wesley Mathews, President & CEO of Choose New Jersey. “Choose New Jersey led a fourth consecutive mission to Israel in 2021 to strengthen economic ties and build on Governor Murphy’s visit in 2018. Our visits have paved the way for several Israeli businesses to open or expand their footprint here, for New Jersey companies and universities to collaborate with Israeli counterparts, and we look forward to exploring additional opportunities for shared growth and innovation.”
Read the full press release here.