This research paper focuses on the analysis of Israel's balance of payments during the period from 2012 to 2022. The balance of payments is a key indicator of the economic stability and international position of the country, and its understanding is of crucial importance for the adoption of economic policies and strategies. The focus of the work is on the analysis of individual accounts and their contribution to the entire balance of payments. Israel, as a small but extremely open economy, shows significant interaction with the global market. In the analyzed period, the Israeli economy went through different cycles, including periods of rapid growth and phases of stagnation, and was exposed to external shocks such as trade wars, the COVID-19 pandemic, and changes in international investment flows. These factors significantly influenced the movement of the current account balance, trade in goods and services, primary and secondary accounts, and annual flows of foreign exchange reserves. Increasing foreign investment, managing foreign exchange reserves and adapting to external economic shocks are key elements that shape Israel's economic policies and strategies. The paper emphasizes the importance of understanding international economic flows and their implications for the domestic economy, providing a foundation for future economic analysis and policy making.