Israel economy22.06

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Israel economy22.06

  1. 1. Israel Economy The Israel Export & International Cooperation Institute
  2. 2. Macro Economic Indicators Source: IMF,EIU, CBS, Bank of Israel, IEICI 201320122011201020092008Criteria 273257258232206213GDP (B$ -at current market prices) 3.6%3.4%4.6%5.7%1.2%4.0%GDP Real Growth rate (%) 34,87633,87832,92531,55830,15830,209GDP per Capita (PPP, $) 959391806881Exports of Goods & Services (B$) 949392766384Imports of Goods & Services (B$) 6.3%6.9%6.7%6.6%7.5%6.1%Unemployment Rate (%) 1.8%1.6%2.2%2.7%3.9%3.8%Inflation Rate (Year End)
  3. 3. 1985 2008 2013 GDP per capita (US=100) 6,171 $ 30,209$ 34,876$ Inflation Rate (Year End) 470% 3.8% 1.8% Current Account Balance (% of GDP) -5.8% 1.4% 1.6% Budget Balance (% of GDP) -14.4% -2.1% -3.2% Public Debt (% of GDP) 159.5% 71.5% 66.2% Israel Economy – Past & Present Source: EIU, CBS, Bank of Israel
  4. 4. 3.9 2.6 2.2 2 2.7 2.5 1.8 2.8 1.7 2.6 1.9 1.6 -0.6 -0.5 0.9 3 1.9 1.5 1.2 2.2 5.7 4.6 3.4 3.6 3.1 2010 2011 2012 2013 2014* world US Euro area OECD Israel World GDP Growth Forecast Israel’s growth rate has exceeded the average growth rate of advanced economies. Source: Economist Intelligence Unit ,MoF forecast
  5. 5. 3.6 4.7 1.4 2.6 2.2 4.5 3.6 7.5 3.6 1.4 6.6 4.6 7.2 3.8 7 9.9 5.5 3.4 4.1 3.4 9.3 -0.2 -0.6 1.5 4.8 4.7 5.8 5.9 4.1 1.1 5.7 4.6 3.4 3.6 3.1 * IMF Israel GDP Growth Dot- com bubble burst & the second intifada The subprime crisis Debt crisis/ world economic slowdown The first intifada
  6. 6. Source: EIU Since 2003, government debt has been on a consistent downward trend, only interrupted by the extraordinary circumstances surrounding the 2009 global economic crisis Gross Public Debt (as % of GDP) 50 60 70 80 90 100 110 2009 2010 2011 2012 2013 2014* 2015* 2016* 2017* 2018* ISRAEL U.K U.S Forecast
  7. 7. Source: Ministry of Finance Israel’s Credit Ratings ForecastCredit RatingRating Firm StableA1 StableA+ StableA Nov 2007 S&P upgrade Israel To A April 2008 Moody’s upgrade Israel To A1 Sep 2011 S&P upgrade Israel To A+ Feb 2008 Fitch upgrade Israel To A Israel is the only Western country that has managed to have its credit rating raised since the outbreak of the global crisis
  8. 8. Source: EIU GDP Per Capita 1980-2012 (as % of U.S GDP, PPP) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Growing fast, but not fast enough…
  9. 9. Gini coefficient 2010 Israel still needs to deal with rising income-inequality
  10. 10. 0 10 20 30 40 50 60 70 80 90 100 B$ Exports of Goods&Services Imports of Goods&Services Trade of Goods&Services 1980-2013 (in Billions of $)
  11. 11. Trade Share of GDP 1995-2013 (in %) 63.4% 61.9% 61.9% 60.9% 69.8% 74.1% 67.4% 71.6% 73.0% 82.1% 85.4% 81.9% 82.5% 77.1% 63.0% 66.9% 70.3% 71.1% 62.7% 50% 55% 60% 65% 70% 75% 80% 85% 90% * Exc. Taxes on net import
  12. 12. * IEICI Forecast , including total exports of goods exports to the PA and ongoing projects Exports of goods and services (1980-2013*, in billions of $) For the last 30 years - Exports of goods and services has been a major growth engine in the Israeli economy 6 13 20 31 28 28 30 37 40 44 51 58 46 56 64 62 62 3 5 8 16 13 12 13 15 17 18 20 24 21 24 27 31 33 1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Services Goods
  13. 13. North America 23% Africa 3% Latin America 6% Asia and the Far East 21% Europe 41% B10$ B11$ B2.7$ B20$ B1.3$ Rest of World 6% B2.5$ Despite the increased share of Asia and Latin America in recent years export are still mainly directed to the U.S. and the EU Distribution of export by regional trade (2013) * Exports of goods exc. services
  14. 14. 90 95 100 105 110 115 120 125 130 135 140 Exchange rate 2002-2013 rate:effective exchangeReal
  15. 15. Israel Export Growth Dot- com bubble burst & the second intifada Subprime crisis 15% 8% 7% 3% 15% 23% -13% -3% 11% 20% 9% 9% 14% 15% -17% 18% 13% 0% 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* *2013–IEICI Forecast Debt crisis/ world economic slowdown
  16. 16. Low Tech Industries 6% Hi-Tech Industries 44% Med-Hi Tech Industries 37% Med-Low Tech Industries 13% 20.2B$ 2.9 B$ 5.8 B$ 17 B$ The Industrial Export by Sector Export in 2013 Export of Hi-Tech products comprise 44% of total industrial export
  17. 17. In the past decade the industrial export was mainly affected by the rapid growth of the Hi-Tech industry Industrial Exports Growth by sector 1995-2013 Source: Central Bureau of Statistics - 5,000 10,000 15,000 20,000 25,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 High - technology industries Medium - high technology industries Medium - low technology industries Low - technology industries B$
  18. 18. Main Hi-tech Services Sectors 2002-2013 Source: Central Bureau of Statistics Billionsof$ Hi-tech services export grew dramatically over the past years and consider to be the main growth engine for the Israeli economy 2.4 2.9 3.2 3.4 4.0 4.5 4.9 4.6 5.5 6.9 8.0 8.4 0.8 1.3 1.6 1.6 2.2 2.5 3.4 3.8 2.6 2.8 4.7 5.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Computer & Software services Research and development
  19. 19. 18% 13% 22%6% 24% 11% 6% Pharmaceutical products Electronical components Medical & computing equipment Aircraft Computer and related services Research and development - exc.start-up companies Exports of services from start-up companies Source: IEICI Calculations’ Main Hi-tech Sectors 2013 Total High-tech Export of 2013: 35.7 B$
  20. 20. 4.25% 2.33% 0% 1% 2% 3% 4% 5% 6% Israel is 1st in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity. Expenditure on R&D as % of GDP ,2010
  21. 21. 3.3 2.7 2.6 2.3 5.2 9.7 8.3 0 2 4 6 8 10 12 2007 2008 2009 2010 2011 2012 2013 M&A's of Israeli High-Tech Companies (Year Av.) Israel’s High-Tech Source: Giza Venture Capital
  22. 22. Source: Giza Venture Capital VC Investments – Global comparison B$, 2011-2012
  23. 23. Israel in Global Perspective The Global Competitiveness Index- WEF/144 The World Economic Forum ranked Israel 26th out of 144 countries for 2012-2013 1 2 3 4 5 6 7 8 9 10 13 16 19 21 26 29 36 38 42 43 48 49 50 53 59 60 67 75 78 96 110 115 120 126 132 144 Switzerland Singapore Finland Sweden Netherlands Germany United States United Kingdom Hong Kong Japan Taiwan Austria Korea, Rep. France Israel China Spain Thailand Italy Turkey Brazil Portugal Indonesia Mexico India Hungary Russia Vietnam Romania Greece Algeria Nigeria Tanzania Venezuela Zimbabwe Burundi
  24. 24. Israel in Global Perspective
  25. 25. Israel in Global Perspective
  26. 26. The Global Competitiveness Index Israel in Global Perspective Quality of scientific research institutions Venture capital availability Strength of investor protectionPCT* patent applications * PCT (Patent Cooperation Treaty)
  27. 27. Israel in Global Perspective The Global Competitiveness Index Government procurement of advanced technology products Capacity for innovation University-industry collaboration in R&DFirm-level technology absorption
  28. 28. Did you know Israel is…
  29. 29. 1 2 3 4 10 12 15 16 19 21 27 28 29 30 31 34 35 36 38 41 42 43 52 65 69 96 99 102 116 120 134 147 189 Singapore Hong Kong New Zealand United States United Kingdom Finland Ireland Taiwan, China Canada Germany Japan Netherlands Switzerland Austria Portugal Chile Israel Belgium France South Africa Peru Colombia Spain Italy Turkey China Vietnam Costa Rica Brazil Indonesia India Nigeria Chad Israel in Global Perspective Doing Business Index 2014 (World Bank)/189
  30. 30. Israel in Global Perspective Rank2014DB Rank2013DB Starting a Business 35 39 Dealing with Construction Permits 140 135 Getting Electricity 103 100 Registering Property 151 146 Getting Credit 13 11 Protecting Investors 6 6 Paying Taxes 93 87 Trading Across Borders 10 10 Enforcing Contracts 93 92 Resolving Insolvency 35 34 Total Rank 35 33
  31. 31. Thank you Shauli katznelson Deputy Director General shauli@export.gov.il

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