Abstract:The sudden outbreak of COVID-19 at the beginning of 2020 has made a huge impact on the world economy，and the Israeli economy was not spared. In order to prevent the economic recession，the Israeli government has introduced a series of fiscal measures，currency measures，economic and trade，and industrial measures to ensure the market liquidity as well as economic vitality. It focused on helping small and medium-sized enterprises，and ensured people’s employment and basic livelihood needs through reducing government expenditures. Under the influence of the pandemic，Israeli economy was fully polarized，the traditional industries were deeply affected，and approximate 1 million people were unemployed or on unpaid vacation. However，high-tech industries，especially life science，cyber security，financial technology，and food technology，suffered from lack of human resource. In the meantime，more and more international industrial capital and financial capital favored investment in Israeli high-tech sector，with its annual total investment sum hitting record high. The yearly performance of Israeli economy displays the relative effectiveness of Israel’s economic rescue policies and the strong resilience of its high-tech industries. Nevertheless，Israel’s lack of high-tech talents，intensified industrial polarization，and decrease in the number of start-ups are posing inescapable challenges to the continuous development of its innovative economy.
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