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Israel’s Economy – Main Characteristics. Export Oriented Growth Rapid Development of Technology & High-Tech Industries Entrepreneurial Culture Supportive Environment for Business Investment & R&D Incentives. Contents :. Facts & Figures Foreign Trade Industry
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Israel’s Economy – Main Characteristics • Export Oriented Growth • Rapid Development of Technology & High-Tech Industries • Entrepreneurial Culture • Supportive Environment for Business • Investment & R&D Incentives
Contents: • Facts & Figures • Foreign Trade • Industry • Doing Business in Israel • Benefits & Investments
Facts & Figures Main Economic Indicators Source: Central Bureau of Statistics, Bank of Israel
Facts & Figures Main Economic Indicators and Forecast Source: Central Bureau of Statistics, Bank of Israel, Forecast: Ministry of Finance June 2005
Facts & Figures GDP and GDP per Capita (Annual % Change, in Constant Prices) Source: Central Bureau of Statistics *Estimation
Facts & Figures Business Sector GDP Growth(Annual % Change) Source: Central Bureau of Statistics, Bank of Israel *Estimation
Facts & Figures Major GDP Components(Annual % Change, in Constant Prices) Source: Central Bureau of Statistics, Bank of Israe l *Estimation
Facts & Figures 50.5 45.6 42.4 39.9 38.3 Exports of Goods and Services(B$) Source: Central Bureau of Statistics, Bank of Israel
Facts & Figures GDP Growth and Exports Growth(Cumulative Rate of Growth by Period) Source: Central Bureau of Statistics, Bank of Israel
Facts & Figures General Government Expenditure(% of GDP) Source: Ministry of Finance, 2005
Facts & Figures Gross Tax Burden(% of GDP) Source: Ministry of Finance, 2005
Facts & Figures Budget Deficit(% of GDP) Source: Ministry of Finance, 2005 *Forecast, Including the Disengagement Program Expenses
Facts & Figures Current Account(% of GDP) Source: Bank of Israel
Facts & Figures Net Foreign Debt(% of GDP) Source: Bank of Israel
Facts & Figures High-Tech Bubble Burst High-Tech Boom Foreign Direct Investment (B$) *Forecast Source: Bank of Israel
Facts & Figures Inflation Rate(% Change in CPI, end of year) Source: Economist Intelligence Unit , Bank of Israel *Forecast
Facts & Figures Unemployment Rate by Quarters*(% of Total Labor Force) Source: Central Bureau of Statistics, Bank of Israel *Seasonally Adjusted Data
Facts & Figures New Employed Persons in 2004(Change in Israeli Employed Persons, in Thousands) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel
Facts & Figures Estimated Growth of Main GDP Components 2005 *Published: September 2005
Facts & Figures Central Bank Interest Rates-Israel vs. USA (%) Bank of Israel Rate Federal Reserve Rate Source: Bank of Israel, Federal Reserve
Facts & Figures A1/A+ A2/A A3/A- Baa1/BBB+ Baa2/BBB Baa3 /BBB- Israel’s Credit Rating 1992-2005 Source: Credit Rating Agencies
Facts & Figures 1 7 11 13 15 19 21 23 27 37 41 46 47 48 60 66 Growth Competitiveness Index, 2004Israel Ranks 19 Out of 104 Countries (2003 Rank was 20) Source: World Economic Forum, GCI 2004
Facts & Figures 1 3 6 8 12 13 21 22 24 26 30 34 41 47 52 55 Business Competitiveness Index, 2004 Israel Ranks 21 Out of 103 Countries (2003 Rank was 20) Source: World Economic Forum, GCI 2004
Facts & Figures 1 2 3 4 5 6 7 8 9 10 Core Technology-Innovating Economies, 2003Israel Ranks 4 Out of 103 Countries Source: The Global Competitiveness Report 2004-2005
Foreign trade EXPORTS: The Engine of Israeli Growth In 2004, the Export Sector’s share in the total GDP growth was about 60%, making it the main contributor of GDP growth.
Foreign trade Trade of Goods and Services (B$) Source: Central Bureau of Statistics, Bank of Israel *Estimation
Foreign trade Trade Deficit (B$ and % of Exports) Source: Central Bureau of Statistics, Bank of Israel *Estimation
Foreign trade Annual Trade* Growth *Note: Trade of Goods (exc. Diamonds ) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade Exports as a % of GDP Source: Central Bureau of Statistics, Bank of Israel, Israel Export & International Cooperation Institute, Ministry of Finance *Forecast
Foreign trade Exports of Goods by Commodity Group, 2004(% of Total Exports of Goods) The High-Tech Sector Accounts for 33% of Total Exports of Goods Source: Central Bureau of Statistics, Bank of Israel
Foreign trade 23.7 19.5 15.5 8.6 The Growth of Industrial Exports (B$) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade Exports of Goods by Region 2004(exc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade Imports of Goods by Region 2004(exc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade 20.2 7.0 4.5 4.0 3.5 3.1 2.7 2.4 2.2 2.1 2.1 Israel’s Main Trading Partners, 2004(inc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade 12.3 4.4 2.8 2.7 2.4 2.1 2.0 2.0 1.8 1.7 1.7 1.3 1.2 1.1 Israel’s Main Trading Partners, 2004(exc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade Growth Rate of Commodity Exports by Selected Countries, 2003-2004(% of Change) Source: Global Trade Information Service (GTIS)
Foreign trade Real Growth in Exports of Goods and Services - International Comparison(Annual Average for 1999-2003) Source: OECD - Organisation for Economic Co-operation and Development
Foreign trade Medium High-Tech Export Development(B$) 6.2 5.1 Source: Central Bureau of Statistics, Bank of Israel
Foreign trade 4.5 3.6 Medium Low-Tech Export Development (B$) Source: Central Bureau of Statistics, Bank of Israel
Foreign trade 2.0 1.8 Low-Tech Export Development(B$) Source: Central Bureau of Statistics, Bank of Israel
Industry Selected Indicators in Industry, 2001-2004(Real Annual Change, Yearly Average) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel
Industry Industrial Production and Exports(Real Cumulative Rates of Change) Source: Central Bureau of Statistics, Bank of Israel
Industry Labor Productivity in Industry, 2000-2004 (Real Annual Change) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel
Industry A High-Tech Oriented Industry - The Israeli Industry is Undergoing Long Term Structural Changes (Industrial Output Distribution 1994, 2004) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel
Industry Average 7% The High-Tech Sectors led Industrial Growth in 2004 (Real Annual Change) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel
Industry Average 1.1% The High-Tech Sectors Recruited the Largest Number of Persons in Industry in 2004(Real Annual Change) Source: Central Bureau of Statistics, Manufacturers’ Association of Israel