Israel in a Global

PerspectiveThe Israel Business Conference

December 2010

Prof. Eugene Kandel

Head of National Economic CouncilPrime Minister’s Office

GDP, GDP per capita growth (percent change)

Source: IMF, CBS

1980-1995 1995-2009 1980-1995 1995-2009GDP per capita GDP

0%

50%

100%

150%

200%

250%

Advanced economies Emerging and developing economiesIsrael

1940 1950 1960 1970 1980 1990 2000 2010 2020 -

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000 7,200

5,650,000

1,005,000

OECD countriesThe rest of the worldIsrael

Population (in thousands of persons)

Source: CBS ,The Conference Board

Sources of output growth(average annual percentage points contribution)

1997-2

004

2005-2

008

1995-2

004

2005-2

008

1995-2

004

2005-2

008

IsraelAdvancedEmerging and develop-ing

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00Labour ICT capital Non- ICT capital TFP

Source: The Conference Board

)percentage( Employment rates, ages 25-64, 2009

women men0

10

20

30

40

50

60

70

80

90

61.2

80.3

24.7

70.7

58.0

39.4

73.179.7

64.2

75.7

OECD Arab Ultra orthodox Others All

Source: CBS

Percentage of the population that has attained tertiary education by age group, 2009

OECD av-erage

France United Kingdom

United States

Canada Israel20

25

30

35

40

45

50

55

60

25-64

25-34

Source: OECD Education at a Glance 2010

Israeli exchange rates24

/07/

1998

06/1

2/19

99

19/0

4/20

01

01/0

9/20

02

14/0

1/20

04

28/0

5/20

05

10/1

0/20

06

22/0

2/20

08

06/0

7/20

09

18/1

1/20

10

01/0

4/20

12

2.5

3

3.5

4

4.5

5

5.5

30

50

70

90

110

130

150

shekel/dollar

shekel/basket

Source: Bank of Israel

Current account – balance of payments level (millions of $, current prices)

-6000.0

-4000.0

-2000.0

0.0

2000.0

4000.0

6000.0

8000.0

10000.0

Source: CBS

1950 1960 1970 1980 1990 2000 2008 20090%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other US ASIA EU

Israeli exports by main groups, (percentages)

Source: CBSAsia