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. 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
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. 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. 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…
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. * IEICI Forecast , including total exports of goods exports to the PA and ongoing projects
Exports of goods and services (1980-2013*, in billions of
$)
For the last 30 years - Exports of goods and services has been a
major growth engine in the Israeli economy
6
13
20
31 28 28 30
37 40 44
51
58
46
56
64 62 62
3
5
8
16
13 12
13
15
17
18
20
24
21
24
27 31 33
1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Services Goods
13. North America
23%
Africa
3%
Latin America
6%
Asia and the Far East
21%
Europe
41%
B10$
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
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. 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. 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. 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. 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
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
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. 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
