israel economy22.06
TRANSCRIPT
Israel Economy The Israel Export & International
Cooperation Institute
Macro Economic Indicators
Source: IMF,EIU, CBS, Bank of Israel, IEICI
2013 2012 2011 2010 2009 2008 Criteria
273 257 258 232 206 213 GDP (B$ -at current market prices)
3.6% 3.4% 4.6% 5.7% 1.2% 4.0% GDP Real Growth rate (%)
34,876 33,878 32,925 31,558 30,158 30,209 GDP per Capita (PPP, $)
95 93 91 80 68 81 Exports of Goods & Services (B$)
94 93 92 76 63 84 Imports 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)
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
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
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
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
Source: Ministry of Finance
Israel’s Credit Ratings
Forecast Credit Rating Rating Firm
Stable A1
Stable A+
Stable A
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
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…
Gini coefficient 2010
Israel still needs to deal with
rising income-inequality
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 $)
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
* IEICI Forecast , including total exports of goods exports to the PA and ongoing projects
Exports of goods and services (1980-2013*, in billions of
$)
For the last 30 years - Exports of goods and services has been a
major growth engine in the Israeli economy
6 13
20 31 28 28 30
37 40 44 51
58 46
56 64 62 62
3
5
8
16 13 12
13
15 17
18
20
24
21
24
27 31 33
1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Services Goods
North America
23%
Africa
3%
Latin America
6%
Asia and the Far East
21%
Europe
41%
B10$ 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
90
95
100
105
110
115
120
125
130
135
140
Exchange rate 2002-2013
rate:effective exchange Real
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
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
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$
Main Hi-tech Services Sectors
2002-2013
Source: Central Bureau of Statistics
Bil
lio
ns
of
$
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
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$
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
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
Source: Giza Venture Capital
VC Investments –
Global comparison B$, 2011-2012
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
SwitzerlandSingapore
FinlandSweden
NetherlandsGermany
United StatesUnited Kingdom
Hong KongJapan
TaiwanAustria
Korea, Rep.France
IsraelChinaSpain
ThailandItaly
TurkeyBrazil
PortugalIndonesia
MexicoIndia
HungaryRussia
VietnamRomania
GreeceAlgeriaNigeria
TanzaniaVenezuelaZimbabwe
Burundi
Israel in Global Perspective
Israel in Global Perspective
The Global Competitiveness Index
Israel in Global Perspective
Quality of scientific research institutions Venture capital availability
Strength of investor protection PCT* patent applications
* PCT (Patent Cooperation Treaty)
Israel in Global Perspective
The Global Competitiveness Index
Government procurement of advanced technology products Capacity for innovation
University-industry collaboration in R&D Firm-level technology absorption
Did you know Israel is…
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52
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116
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134
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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
Israel in Global Perspective
Rank 2014DB Rank 2013DB
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
