Israel

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Nov 18, 2013 (3 years and 9 months ago)

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Israel Economy



March 2011

Israel
-

Macro Economic indicators,
2005
-
2010

Source
:
EIU, CBS, Bank of Israel

* Forecast

2010

2009

2008

2007

2006

2005

Criteria

217
*

195.4

202.3

168

146.2

134.3

GDP
(B$
-
at current market
prices)

4.5
%*
?
0.8
%
?
4.2
%
?
5.4
%
?
5.7
%
?
5.1
%
?
GDP Real Growth rate (%)

28
,
680
*

27
,
930

27
,
960

26
,
730

25
,
080

23
,
390

GDP per Capita (PPP, $)

80.5

67.7

81.1

71.3

62.5

57.2

Exports of Goods &
Services (B$)

76

62.9

84.0

73.5

61.7

57.6

Imports of Goods &
Services (B$)

6.7
%

7.5
%

6.1
%

7.3
%

8.4
%

9.0
%

Unemployment Rate (%)

2.6
%

3.9
%

3.8
%

3.4
%

-
0.1
%

2.4
%

Inflation Rate (Year End)

3.2
%*

3.9
%

0.8
%

2.9
%

5.1
%

3.1
%

Current Account balance
(% of GDP)

**IEICI Forecast

GDP
Growth (%)

*Forecast

Source
:
EIU

5.7
5.4
4.2
0.8
4.5
3.8
4.1
3.9
1.5
-2.3
3.8
3.1
3.1
2.8
0.4
-4.1
1.6
2.7
1.9
0
-2.6
2.9
2.7
2
2.3
-1.2
-6.3
4.0
1.6
1.9
2006
2007
2008
2009
2010
2011*
Israel
World
Euro area
USA
Japan
Real GDP Growth

(annual % of change ,
2009
)

Source
:
Ministry of Finance

While many OECD countries were severely affected by the global
, and only a
Israel still experienced a positive growth
economic crisis,
relatively mild decline in its multi year growth rate.

Source
:
Ministry of Finance

Israel’s Credit Ratings

GDP Quarterly Growth

Source
:
eiu

Source
:
EIU

82.6%
75.8%
75.2%
77.7%
78.7%
74.2%
70.6%
66.2%
61.5%
56.2%
50
55
60
65
70
75
80
85
90
95
100
2006
2007
2008
2009
2010*
2011*
2012*
2013*
2014*
2015*
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)

Expenditure on R&D

(as % of GDP,
2008
)

Source
:
Ministry of Finance

Unemployment Rate

(harmonized,
2009
)

Source
:
Ministry of Finance

Goods & Services Export Development

(Including Diamonds , B $)

51
56
22
25
6.0
12.7
30.9
27.2
27.7
49.8
43.3
39.7
36.3
56.6
19.5
29.9
2.7
4.6
15.4
12.2
16.0
17.5
19.3
21.1
23.8
8.0
12.9
13.7
1980
1990
1995
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Services Export
Merchandise Export
North America

29
%

Africa

3
%

Latin America

6
%

Asia

20
%

Rest of Europe

6
%

EU


30
%

B
8.4
$

B
12.4
$

2.3
B

$

B
12.7
$

B
1.3
$

B
2.6
$

Rest of World

6
%

B
2.5
$

ISRAEL
-

Goods Export
2010

(excluding diamonds)

A shift from traditional market to Asian markets

Exports of Goods by Region



(excluding Diamonds)

Source:
Central Bureau of Statistics

13

32.1%
34.4%
30.1%
16.3%
14.8%
19.9%
29.7%
28.2%
27.8%
22.0%
22.5%
22.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2005
2010
E.U.
Asia
U.S.
Rest Of World
Israel’s Main Trading Partners
2010



(US$ Billions, excluding diamonds)

Source: Central Bureau of Statistics

14

China has become a leading trade partner for Israel

0.6
1.7
1.2
1.3
1.2
2.0
1.8
1.7
1.7
11.7
5.9
4.7
3.7
2.1
1.7
2.4
1.8
1.5
0.7
1.8
U.S.
China
Germany
Netherland
U.K.
Italy
Turkey
France
India
Japan
Export
Import
Israel
-

Cyprus trade
2003
-
10
(M$)

881
491
567
541
623
775
32
65
69
25
153
44
2005
2006
2007
2008
2009
2010
Exports
Imports

Israel Exports to Cyprus


main sectors,
2010

SECTOR

M$

% change
10
/
09

% of total

Chemicals


669


33%

86
%

Plastic and Rubber


9.7


0%

1
%

Machinery & Electrical Eq.


9.2


34%

1
%

Agriculture


7.6


14%
-

1
%

Wood, furniture etc.

7.5


35%

1
%

Mining and Quarrying

5.9


17%
-

1
%

Other


66

60%


9
%

Total Export

755

37
%

100
%

Growth in

Export of Goods

2010



(US$ Millions, excluding diamonds)

Source: Central Bureau of Statistics

14

China, India and Brazil are the most rapidly growing
markets for Israeli export

98%
59%
41%
30%
22%
18%
17%
16%
12%
10%
6%
1%
-1%
China
U.K.
India
Brazil
Turkey
Germany
Netherland
Italy
France
Spain
Belgium
S.Korea
U.S.
Export of Goods by Sector



2010
in comparison to
2009
(B$)






% of total

% change

2010

2009

Industry

49.5
%

12.6
%

20.2

17.9

Hi
-
Tech Industries

29
%

20.2
%

11.7

9.7

Med
-
Hi Tech Industries

16.5
%

25.4
%

6.7

5.4

Med
-
Low Tech Industries

5
%

6.2
%

2.1

2.0

Low
-
Tech Industries

100
%

16.3
%

40.7

35.0

Total
(excluding diamonds)

Industry Export Growth, By Sector

(M$)

0
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
Hi-Tech Industries
Med-Hi Tech Industries
Med-Low Tech Industries
Low-Tech Industries
In the past decade the industrial export was mainly
affected by the rapid growth of the Hi
-
Tech industry

Growth of Main Hi
-
tech sectors,
1995
-
2010

In the past decade the industrial export was mainly affected by the rapid growth in
equipment for control and supervision and Pharmaceutical products

Main Hi
-
tech services sectors,
2002
-
2010
(m$)

-
1,000
2,000
3,000
4,000
5,000
6,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
Computer Services
R&D Services
Main Hi
-
tech sectors

Source: CBS & IEICI Calculations’ excluding R&D

TOTAL HIGH
-

TECH EXPORTS
2010
:
25
B$

Israel’s Free Trade Agreements

37

* Member states of the common market of the south, not yet in force

1985

1992

1997

1997

European Union


(Association Agreement)

USA

EFTA

Canada

Turkey

Mexico

MERCOSUR*

1999

2000

2007

QIZ Agreement

Egypt

Jordan

* The agreement with Portugal has been recently ratified

** Not yet ratified by South Africa.


Avoidance of Double Taxation Agreements

39

Switzerland

Thailand

The Netherlands

Turkey

Ukraine

United Kingdom

Uzbekistan

USA

Luxembourg

Mexico

Moldova

Norway

Philippines

Portugal *

Poland

Romania

Russia

Singapore

Slovakia

Slovenia

South Africa**

South Korea

Spain

Sweden

Cooperation in Industrial R&D Agreements

Belgium

Canada

China

France

Hong Kong

Italy

Netherlands

Portugal

Spain

UK

USA

Singapore

Ireland

Sweden

Finland

Germany

India

Austria

Korea

40

Protection of Investment Agreements


41

Albania

Argentina

Armenia

Azerbaijan

Belarus

Bulgaria

China


Croatia

Cyprus

Czech Republic

El
-
Salvador

Estonia

Georgia

Germany

Guatemala

India

Kazakhstan

Korea

Latvia


Turkmenistan

Ukraine

Uruguay

Uzbekistan

Protection of Investment Agreements


42

Lithuania

Moldova

Poland

Romania

Slovakia

Slovenia


South Africa


Thailand


Turkey

Israel in Global Perspective

Doing Business Index (World Bank)/
183

1
2
3
4
5
10
15
26
27
29
30
32
37
49
80
79
109
123
134
183
Singapore
Hong Kong
New Zealand
United Kingdom
United States
Australia
Iceland
France
Switzerland
Israel
Netherlands
Austria
Cyprus
Spain
Italy
China
Greece
Russia
India
Chad
Israel in Global Perspective

The Enabling Trade Index
-

WEF/
125

1
2
3
4
5
10
15
20
25
26
27
31
32
48
51
55
84
114
125
Singapore
Hong Kong
Denmark
Sweden
Switzerland
New Zealand
Australia
France
Japan
Israel
S. Korea
Cuprus
Spain
China
Italy
Greece
India
Russia
Burundi
Israel in Global Perspective

The Global Competitiveness

Index
-

WEF/
139

1
2
3
4
5
10
15
22
23
24
26
27
40
42
48
51
58
63
83
139
Switzerland
Sweden
Singapore
United States
Germany
Canada
France
S.Korea
New Zealand
Israel
Malaysia
China
Cyprus
Spain
Italy
India
Brazil
Russian Federation
Greece
Chad
Israel in Global Perspective

The Global Competitiveness

Index
-

WEF/
133

Israel in Global Perspective

The Global Competitiveness

Index
-

WEF/
133

Israel in Global Perspective
2010

IMD World competitiveness Yearbook
2010

The institute for
Management
Development
ranked Israel at the
17
th

Place, Out of
58
countries

Israel was ranked
24
th

at
2009

Israel in Global Perspective
2010

IMD World competitiveness Yearbook
2010

Israel in Global Perspective
2010

IMD World competitiveness Yearbook
2010

Small country
-

great spirit!


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

Israel's technology advantages:

Thank you

Shauli katznelson

Chief Economist

shauli@export.gov.il

Inflation Rate Worldwide

(Annual rate of change in CPI)

Source
:
Ministry of Finance

Budget Deficit & General Government Expenditure
(as % of GDP)

Source
:
Ministry of Finance