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Economic Highlights Presentation2nd Quarter 2012
STATE OF ISRAELMINISTRY OF FINANCEInternational Affairs Department
In any case of information derived from sources external to the Ministry of Finance, such sources are mentioned at the bottom of each item
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
Table of Contents
Main Economic Indicators
GDP and Business GDP
Major GDP Components
Exports of Goods and Services
Foreign Investments
Unemployment and Participation
Consumer Price Index
Inflation Rate
Economic Figures
Main Trading Partners
Israel’s Credit Ratings
Gross Domestic Capital Formation
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Economic Figures
* Using a public exchange rate of 1USD=3.6NIS (2011 average) ** Estimated
Criteria201020112011 Q22011 Q32011 Q42012 Q1
GDP(constant prices, 2005, in $B)*
204.6214.2 53.453.954.354.7
Real GDP growth rate(% change)
4.8%4.7%3.7%3.3%3.2%2.9%
GDP per capita, based on PPP(Current international $)
29,602$**31,005$6,685$6,707$6,725$6,744$
GDP per capita growth rate (%, 2005 prices)
2.9%2.8%2.0%1.4%1.1%1.1%
Exports (goods & services), $B*(As % of GDP)
87.742.9%
91.942.9%
23.644.2%
23.042.7%
22.641.6%
23.9--
Imports (goods & services), $B*(As % of GDP)
82.340.2%
91.042.5%
23.343.6%
22.842.3%
22.541.4%
24.0--
Unemployment rate8.3%7.0%7.0%7.0%6.8%6.7%
Additional Sources: IMF
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Economic Figures
Criteria200620072008200920102011
Public debt(As % of GDP)
84.3%77.8%77.1%79.3%76.3%74.7%
General government expenditure (As % of GDP)
44.7%43.6%43.0%43.0%42.6%42.3%
Current account surplus(As % of GDP)
5.1%2.9%0.9%3.6%2.9%0.1%
Inflation rate(CPI, yearly average, % change)
2.1%0.5%4.6%3.3%2.7%3.5%
Budget deficit(As % of GDP)
0.9%0.0%2.2%5.2%3.7%3.3%
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GDP and Business GDPAnnual rate of change, constant prices, 2005
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Major GDP ComponentsAnnual rate of change, constant prices, 2005
Global economic crisis
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Exports of Goods and ServicesUS $ Billions, constant prices, 2005
* Using a public exchange rate of 1USD=3.6NIS (2011 average)
Global economic crisis
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Main Trading PartnersUS $ Billions, 2011
* Since July 1997 the data on trade with Hong-Kong is added to the data on China
Additional Sources: Central Bureau of Statistics
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Main Trading PartnersUS $ Billions
Additional Sources: Central Bureau of Statistics
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Gross Domestic Capital FormationAs % of GDP
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Foreign InvestmentsUS $ Billions
* 2006 is exceptional due to a large acquisition by Teva Pharmaceutical Industries Ltd.
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Unemployment and ParticipationAs % of total labor force
Since the 2nd quarter of 2009 unemployment is relatively decreasing, with a relative increase in participation rate in the beginning of 2010. In the 1st quarter of 2012 unemployment reached an historic low level of 6.7%.
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Consumer Price IndexLast 12 monthly averages, 2010=100
Additional Sources: Central Bureau of Statistics
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Inflation RateRate of change in consumer price index, yearly average
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Israel’s Credit Ratings
Rating FirmTermDomestic Bonds
ForecastOverseas Bonds
RatingRating
Moody'sLongA1
StableA1
Short-P1
Standard & Poor's
LongAA-Stable
A+
ShortA-1+A-1
FitchLongA+
StableA
Short-F1
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
Balances
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Budget Deficit
Current Account Surplus
General Government Expenditure
Net Foreign Surplus
Gross Public Debt
Gross Tax Burden
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Gross Public DebtAs % of GDP
Global economic crisis
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Budget DeficitAs % of GDP
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Budget DeficitTarget and execution in NIS million, current prices
For the first time in its history, Israel enacted a biennial budget for the years 2009-2010. In both years, Israel came in under budget target. The proven effectiveness and functionality of the biennial budget have led the government to adopt the biennial budget for a second period through 2011-2012. On June 2012 Israeli cabinet the proposal to institute a two-year budget on a regular basis
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General Government ExpenditureAs % of GDP
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Current Account SurplusAs % of GDP
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Net Foreign SurplusAs % of GDP
* Using a public exchange rate of 1USD=3.6NIS (2011 average)
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Gross Tax BurdenAs % of GDP
Additional Sources: OECD
OECD countries average: 34.8%(2008 average)
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
International Comparisons
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Inflation Rates
Israel on WEF Rankings
Israel on IMD Rankings
Interest Rates: Israel & the U.S.
GDP Growth
Stock Indices: NASDAQ & Tel-Aviv 100
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GDP GrowthIsrael compared to advanced economies, annual rate of change, constant prices
Additional Sources: IMF
Since 2004, Israel’s growth rate has exceeded the average growth rate of advanced economies.
In 2009, as most of the world experienced a decline in GDP, Israel experienced a 0.8% growth in it’s GDP.
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Inflation RatesRate of change in consumer price index, yearly average (2011)
Additional Sources: IMF
The Israeli economy demonstrated high stability compared to other countries throughout the global economic crisis.
The Institute for Management Development
ranked Israel 19th out of 59 countries for
2012.
Israel on IMD RankingsIMD World Competitiveness Yearbook 2012
Additional Sources: IMD World Competitiveness Yearbook 201230
Resilience of the economy Entrepreneurship
Israel on IMD RankingsIMD World Competitiveness Yearbook 2012
Additional Sources: IMD World Competitiveness Yearbook 201231
Israel’s ranking compared to other IMD countries, Business Efficiency and Infrastructure
Israel’s ranking compared to other IMD countries, Economic Performance and Government Efficiency
Israel on IMD RankingsIMD World Competitiveness Yearbook 2012
Additional Sources: IMD World Competitiveness Yearbook 201232
Israel on WEF RankingsWorld Economic Forum Global Competitiveness Index 2011-2012
Additional Sources: World Economic Forum Global Competitiveness Index 2011-2012
The World Economic Forum ranked Israel
22nd out of 142 countries for 2011-2012
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Quality of scientific research institutions Venture capital availability
Strength of investor protectionUtility patents per million population
Israel on WEF RankingsWorld Economic Forum Global Competitiveness Index 2011-2012
Additional Sources: World Economic Forum Global Competitiveness Index 2011-201234
Government procurement of advanced technology products
Capacity for innovation
University-industry collaboration in R&D Firm-level technology absorption
Israel on WEF RankingsWorld Economic Forum Global Competitiveness Index 2011-2012
Additional Sources: World Economic Forum Global Competitiveness Index 2011-201235
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Interest Rates: Israel & the U.S.*
=0
The Bank of Israel was the first in the western world to raise interest since the outburst of the economic crisis. The rate was raised gradually from 0.5% to 3.25%.
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Stock Indices: NASDAQ & Tel-Aviv 100
Tel Aviv 100 corresponds with the NASDAQ to current events, with relatively stable reactions.
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
Israel in the OECD
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Real GDP Growth
Unemployment
GDP per Capita
Expenditure on R&D
Israel was invited as a full member in the OECD on May 10th, 2010, and officially joined in Sep. 10, 2010.
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Expenditure on R&DAs % of GDP, 2010 or latest available year
Additional Sources: OECD
Israel is 1st in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity.
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Real GDP Growth2011, end of period
Additional Sources: OECD
Israel’s growth rate is higher then most OECD members.
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GDP per CapitaU.S $ Billions , Current prices, PPP, 2011 (or most recent data)
Additional Sources: OECD
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Unemployment RateFor 2011
Additional Sources: OECD
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
International Agreements
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Avoidance of Double Taxation
Bilateral Investment Treaties
Cooperation in Industrial R&D
Israel’s Free Trade Agreements
Economic Organizations
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Israel’s Free Trade Agreements
QIZ Agreements1985
1992
1997
1997
1999
2000
2007
USA
EFTA
Turkey
Canada
Mexico
European Union (Association Agreement)
MERCOSUR
2004
1998
Egypt
Jordan
More extended information is available in the Israel Ministry of Finance website
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Avoidance of Double Taxation
More extended information is available in the Israel Ministry of Finance website
Austria
Belarus
Belgium
Brazil
Bulgaria
Canada
China
Croatia
Czech Republic
Denmark
Estonia
Ethiopia
Finland
France
Germany
Greece
Hungary
India
Ireland
Italy
Jamaica
Japan
Latvia
Lithuania
Luxembourg
Georgia
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Avoidance of Double Taxation
More extended information is available in the Israel Ministry of Finance website
Moldova
Norway
Philippines
Portugal
Poland
Romania
Russia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sweden
Switzerland
Thailand
NetherlandsTurkey
Ukraine
UK
Uzbekistan
USA
Taiwan
Vietnam
Mexico
South Korea
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Cooperation in Industrial R&D
More extended information is available in the Israel Ministry of Finance website
North America New YorkMassachusettsMarylandVirginiaWisconsinColoradoIllinoisOregonBIRD (Foundation)Ontario CIIRDF (Foundation)
South America ArgentinaUruguayBrazil
Australia(Victoria)
Europe FranceRussia (Rusano, Skolkovo)ItalyGermanyGreeceCzech RepublicBulgariaLithuania SloveniaDenmarkHungaryTurkeyPortugalFinlandSwedenIreland
* Through EUREKA (40 country Multilateral Initiative)
Asia China( Shanghai, Jiangsu, Most)IndiaTaiwan
SIIRD-Singapore (Foundation)KORIL-RDF-Korea (Foundation)
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Bilateral Investment Treaties
Albania
Argentina
Armenia
Azerbaijan
Belarus
Bulgaria
China
Croatia
India
Kazakhstan
Latvia
Lithuania
Germany
Cyprus
Czech Republic
El Salvador
Estonia
Georgia
Guatemala
Ethiopia
Hungary
Korea
Moldova
More extended information is available in the Israel Ministry of Finance website
Mongolia
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Bilateral Investment Treaties
More extended information is available in the Israel Ministry of Finance website
South Africa
Thailand
Slovakia
Slovenia
Serbia
Poland
Romania
Montenegro Turkey
Turkmenistan
Ukraine
Uzbekistan
Uruguay
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Economic OrganizationsMembership in main international economic organizations
Israel is a member in leading international economic organizations:
• United Nations Organizations
• United Nations Agencies
• World Bank Group
• International Monetary Fund
• OECD
• Regional Organizations
• Inter-Governmental Organizations
More extended information is available in the Israel Ministry of Finance website
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
Learn More
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Visit the Israel Ministry of Finance
English website for more information:
Economic Overview of Israel
Other publications and reports on the Israeli economy
Ministry of Finance publications and reports
About the Ministry
Ministry press releases
Learn More
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Bank of Israel
Ministry of Foreign Affairs
Ministry of Industry, Trade and Labor
Israel Central Bureau of Statistics
Israel Government Portal
Click to open:
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Table of Contents
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Balances
International Comparisons
Main Economic Indicators
Israel in the OECD
Learn More
Contact
International Agreements
Contact
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Mr. Roni HershkovitzMr. Ori Kaufman
Overseas Economic InformationInternational Affairs DepartmentMinistry of FinanceState of Israel
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