IKEA is about to open a second store in Israel, building on the phenomenal sales in the original shop. Ben & Jerry’s will invest over US$2 million in an Israeli productions facility. H&M is following GAP, by opening up in Israel.

Israeli consumers are reflecting other aspects of the economy. For many sectors, the worst of the recession is behind them.

Positive stats abound. Unemployment is now down to 7.4%. In the last quarter of 2009, commercial exports rose by 8.9% on an annual basis. For the 3 months November 2009 – January 2010, sales at chain stores climbed 7.8%, again on an annual basis. And the stock market continues to climb.

As ever, caution must be urged. Israel is dependent on overseas economies, such as the UK, which still faces an uncertain financial future. Anecdotal evidence suggest that there is a slowdown in the activity of start ups, specifically their ability to conduct further r&d. And the shekel remains uncomfortably strong against the dollar, hurting the profitably of exports.

Israel’s economic leaders still have their work cut out for them.