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Israel Economy

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Israel Economy

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Israel Economy

  1. 1. Israel Economy The Israel Export & International Cooperation InstitutePDF created with pdfFactory trial version www.pdffactory.com
  2. 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)PDF created with pdfFactory trial version www.pdffactory.com
  3. 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%PDF created with pdfFactory trial version www.pdffactory.com
  4. 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: EIUPDF created with pdfFactory trial version www.pdffactory.com
  5. 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 IsraelPDF created with pdfFactory trial version www.pdffactory.com
  6. 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 ForecastPDF created with pdfFactory trial version www.pdffactory.com
  7. 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 FinancePDF created with pdfFactory trial version www.pdffactory.com
  8. 8. Israel’s Credit Ratings Domestic Bonds Overseas Bonds Rating Firm Term Forecast Rating Rating Long A1 A1 Moodys Stable Short - P1 Long AA- A+ Standard & Poors Stable Short A-1+ A-1 Long A+ A Fitch Stable Short - F1 Source: Ministry of FinancePDF created with pdfFactory trial version www.pdffactory.com
  9. 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: EIUPDF created with pdfFactory trial version www.pdffactory.com
  10. 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.PDF created with pdfFactory trial version www.pdffactory.com
  11. 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 ForecastPDF created with pdfFactory trial version www.pdffactory.com
  12. 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 StatisticsPDF created with pdfFactory trial version www.pdffactory.com
  13. 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 StatisticsPDF created with pdfFactory trial version www.pdffactory.com
  14. 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 StatisticsPDF created with pdfFactory trial version www.pdffactory.com
  15. 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 StatisticsPDF created with pdfFactory trial version www.pdffactory.com
  16. 16. Main Hi-tech Services Sectors 2002-2011 Billions of $ Source: Central Bureau of StatisticsPDF created with pdfFactory trial version www.pdffactory.com
  17. 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’PDF created with pdfFactory trial version www.pdffactory.com
  18. 18. World Population By median Source: CIA World FactbookPDF created with pdfFactory trial version www.pdffactory.com
  19. 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 forcePDF created with pdfFactory trial version www.pdffactory.com
  20. 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 FinancePDF created with pdfFactory trial version www.pdffactory.com
  21. 21. Israel in Global Perspective Doing Business Index (World Bank)/183PDF created with pdfFactory trial version www.pdffactory.com
  22. 22. Israel in Global Perspective The Global Competitiveness Index- WEF/142 The World Economic Forum ranked Israel 22th out of 142 countries for 2011-2012PDF created with pdfFactory trial version www.pdffactory.com
  23. 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 protectionPDF created with pdfFactory trial version www.pdffactory.com
  24. 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&DPDF created with pdfFactory trial version www.pdffactory.com
  25. 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 2011PDF created with pdfFactory trial version www.pdffactory.com
  26. 26. Israel in Global Perspective IMD World Competitiveness Yearbook 2011 Information technology skills Central bank policy Flexible and adaptability EntrepreneurshipPDF created with pdfFactory trial version www.pdffactory.com
  27. 27. Israel in Global Perspective IMD World Competitiveness Yearbook 2010 Total expenditure on R&D (as % of GDP) Scientific research Venture capital Innovative capacityPDF created with pdfFactory trial version www.pdffactory.com
  28. 28. Small country, great spirit! Israels 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 incentivesPDF created with pdfFactory trial version www.pdffactory.com
  29. 29. Thank you Shauli katznelson Deputy Director General shauli@export.gov.ilPDF created with pdfFactory trial version www.pdffactory.com

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