In the first quarter of 2010, the Tel Aviv Stock Exchange rose by over 7%. It is now less than one percent off its peak of October 2007.

If you consider the country’s balance of trade, the figures for January and February 2010 show that the downturn of the same period last year has been largely made up. As Israel begins to develop its own natural gas supplies, the balance of payments figures will swing sharply positive over the next decade.

When measuring income, the GDP per capita has broken the US$30,000 level. In dollar terms, this is a 50% change within a decade. (12% when measured in the local shekel currency).

Yes – there are those who see that the stock exchange will level off for the rest of the year. The shekel is overvalued for the likes of Israeli exporters and is likely to remain that way for the near future. That will hit profitability of many companies.

However, whichever way you look at it, the three factors above are very potent. They clearly highlight the current strength of the Israeli economy.