a presentation for foreigners about how to travel in Germany.
Israel Economy
1. Israel Economy
The Israel Export & International
Cooperation Institute
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2. Israel’s Economy
Main Characteristics
Export Oriented Growth
Rapid Development of Technology &
Hi-Tech Industries
High Skilled Human Resources
Entrepreneurial Culture (Start Up Nation)
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3. Israel Economy –
Past & Present
1985 2011
GDP per capita (us=100) 6,171 $ 32,298 $
Inflation Rate (Year End) 470% 2.2%
Current Account Balance
-5.8% 0.1%
(% of GDP)
Budget Balance
-14.4% 3.7%
(% of GDP)
Government Debt (% of GDP) 159.5% 73.3%
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4. Gross Public Debt
(as % of GDP)
Since 2003, government debt has been on a consistent downward trend,
only interrupted by the extraordinary circumstances surrounding the
2009 global economic crisis
United States 120
Israel
110
United Kingdom
100
90
80
70
60
50
40
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: EIU
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5. Macro Economic
indicators
Criteria 2007 2008 2009 2010 2011
GDP (B$ -at current market prices) 167 202 195 218 243
GDP Real Growth rate (%) 5.5% 4.0% 0.8% 4.8% 4.7%
GDP per Capita (PPP, $) 26,660 27,850 27,710 28,850 30,160
Exports of Goods & Services (B$) 71 81 68 80 90
Imports of Goods & Services (B$) 74 84 63 76 92
Unemployment Rate (%) 7.3% 6.1% 7.5% 6.6% 5.6%
Inflt i o R t e (Year End)
a n a 3.4% 3.8% 3.9% 2.7% 2.2%
Current Account balance (% of GDP) 2.7% 0.9% 3.6% 2.9% 0.1%
Source: EIU, CBS, Bank of Israel
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6. World GDP Growth
6 5.5
world 4.8 4.7
US 4 4 4
4
3 3 3.1
Euro area 2.7 2.6 2.8
OECD 1.9 1.8 2 1.8
2 1.7 1.5 1.8
1.3 1.1
Israel 0.8
0.3 0.1
0
-0.3
-0.7
-2
-2.4
-4 -3.5 -3.7
-4.2
-6
2007 2008 2009 2010 2011 2012
Forecast
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7. Real GDP Growth
3-year average, end of period
(2008-2010)
Israel’s 3-year average growth rate is higher then most OECD members.
Source: Ministry of Finance
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8. Israel’s
Credit Ratings
Domestic Bonds Overseas Bonds
Rating Firm Term Forecast
Rating Rating
Long A1 A1
Moody's Stable
Short - P1
Long AA- A+
Standard & Poor's Stable
Short A-1+ A-1
Long A+ A
Fitch Stable
Short - F1
Source: Ministry of Finance
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9. Current Account Balance
& Net Foreign Debt
Current Account Surplus Net Foreign Surplus*
(% of GDP) (% of GDP)
Since 2003, the current account balance is positive, and is accompanied by a
decrease of net foreign debt
Source: EIU
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10. Expenditure on
R&D
as % of GDP ,2010
Israel is 1st in the OECD in expenditure on R&D (research & development) as %
of GDP, demonstrating innovation, development and creativity.
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11. Export of Goods &
Services
In Billions of $
Export of Goods 24 27
24
Export of Services 20 21
18
15 17
16 13 12 13
56 63
51 58 46
8 40 44
5 31 30 37
28 28
20
13
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Central Bureau of Statistics , *2011: IEICI Forecast
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12. Export of Goods to
the World
2011, Excluding Diamonds
Rest of Europe
7%
North America Asia
27% E.U. 19%
32%
Africa Rest of World
3% 6%
Latin America
4%
A shift from traditional market to Asian markets
Source: Central Bureau of Statistics
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13. The Industrial Export
by Sector
Export in 2011
2B$
Low Tech Industries
21.4B$ 5%
Hi-Tech Industries 7.7B$
47%
Med-Low Tech Industries
17%
13.9B$
Med-Hi Tech Industries
31%
Source: Central Bureau of Statistics
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14. Industry Export
Growth by sector
1995-2011 In the past decade the industrial export was mainly affected b
y
the rapid growth of the Hi-Tech industry
B$
Source: Central Bureau of Statistics
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15. Growth of Main
Hi-tech sectors
In the past decade the industrial export was mainly affected b
y
1995-2011 the rapid growth in equipment for control & supervision and
Pharmaceutical products
B$
Source: Central Bureau of Statistics
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16. Main Hi-tech
Services Sectors
2002-2011
Billions of $
Source: Central Bureau of Statistics
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17. Main Hi-tech
Sectors
Total High-tech Export of 2011: 31.5 B$
Industries: 68% (70% Last year)
Services: 32% (30% Last year)
Source: CBS & IEICI Calculations’
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18. World Population
By median
Source: CIA World Factbook
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19. Israel’s Free Trade
Agreements
1985 USA
QIZ Agreements
1992 EFTA
1997 Turkey Egypt (2004)
1997 Canada
Jordan (1998)
1999 Mexico
2000 European Union (Association Agreement)
2007 MERCOSUR (Argentina not yet in force)
* Member states of the common market of the south, not yet in force
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20. Cooperation in Industrial
R&D Agreements
Austria India Sweden
Belgium Ireland United kingdom
Canada Italy U.S.A
China Korea Victoria (Australia)
Finland Netherlands Czech Republic
France Portugal
Germany Singapore
Hong Kong Spain
Source: Ministry of Finance
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21. Israel in Global
Perspective
Doing Business Index (World Bank)/183
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22. Israel in Global
Perspective
The Global Competitiveness Index- WEF/142
The World Economic Forum ranked Israel 22th
out of 142 countries for 2011-2012
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23. Israel in Global
Perspective
The Global Competitiveness Index
Quality of scientific research institutions Venture capital availability
Utility patents per million population Strength of investor protection
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24. Israel in Global
Perspective
The Global Competitiveness Index
Government procurement of advanced
technology products Capacity for innovation
Firm-level technology absorption University-industry collaboration in R&D
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25. Israel in Global
Perspective
IMD World Competitiveness Yearbook 2011
The Institute for Management Development
ranked Israel 17th out of 59 countries for 2011
(Israel was ranked 17th in 2010 and 24th in 2009)
Source: International Institute for Management and
Development (IMD), World Competitiveness Yearbook 2011
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26. Israel in Global
Perspective
IMD World Competitiveness Yearbook 2011
Information technology skills Central bank policy
Flexible and adaptability Entrepreneurship
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27. Israel in Global
Perspective
IMD World Competitiveness Yearbook 2010
Total expenditure on R&D (as % of GDP) Scientific research
Venture capital Innovative capacity
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28. Small country,
great spirit!
Israel's technology advantages:
§ Israel has an entrepreneurial spirit
§ Israel has the mentality of early adopters
§ Israel has a creative fusion between academy and
business
§ Israel has a defense technology
commercialization
§ Israel has highly skilled workforce
§ Israel has a powerful VC community
§ Israel has investment and R&D incentives
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29. Thank you
Shauli katznelson
Deputy Director General
shauli@export.gov.il
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