Transcript שקופית 1 - Ministry of Finance

STATE OF ISRAEL
MINISTRY OF FINANCE
INTERNATIONAL AFFAIRS DEPARTMENT
ECONOMIC HIGHLIGHTS
2nd Quarter 2009
August 2009
International Affairs Department
Contents
Main Characteristics
Economic Figures
Balances
International Comparisons
Note:
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beginning of each chapter
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Israel and the OECD
International Treaties
Relevant Sites
Main Characteristics
Highly Educated Population
Rapid Development of Technology & High-Tech Industries
Entrepreneurial Culture
Open Economy
Intense Trade Relations with Numerous Partners
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Economic Figures
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Main Indicators
GDP and Business GDP
Growth: Israel compared to the World
Major GDP Components
Exports of Goods and Services
Main Trading Partners
Foreign Investments
Unemployment & Participation Rates
Inflation Rate
Inflation Rate Worldwide
Growth of Main GDP Components 2008
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Main Economic Indicators
2005
2006
2007
2008
2009
Q1
GDP (current prices in $B)*
133.2
144.0
164.1
199.3
45.7
GDP Real Growth Rate (%)
5.1%
5.2%
5.4%
4.0%
-3.7%
$22,925
$24,467
$25,974
$27,143
--
3.3%
3.3%
3.5%
2.2%
--
Exports (Goods & Services)** $B*
(As Percentage of GDP)
57.2
(42.9%)
62.5
(43.4%)
70.9
(43.2%)
79.9
(40.1%)
15.2
(33.2%)
Imports (Goods & Services)** $B*
(As Percentage of GDP)
57.6
(43.2%)
62.0
(43.0%)
73.6
(44.8%)
84.0
(42.1%)
13.8
(30.1%)
9.0%
8.4%
7.3%
6.2%
7.6%
Criteria
GDP per Capita
(PPP adjusted)**
GDP per Capita Growth Rate
(%, 2005 prices)
Unemployment Rate (%)
*Using public exchange rate.
** In current prices
Main Economic Indicators
(con.)
Criteria
2005
2006
2007
2008
Total Gross Debt (Percentage of GDP)
94.3%
85.5%
79.8%
78.3%
Government Expenditure
(Percentage of GDP)
45.5%
45.0%
44.2%
43.4%
Current Account Surplus (% of GDP)
3.2%
5.1%
2.8%
1.1%
Inflation Rate ( CPI, end of year)
2.4%
-0.1%
3.4%
3.8%
Source: Ministry of Finance
Main Economic Indicators
(con.)
Domestic Bonds
Rating Firm
Moody's
Standard &
Poor's
Fitch
Term
Rating
Long
A1
Short
-
Long
AA-
Short
A-1+
Long
A+
Short
-
Moody's A1 Stable
Overseas Bonds
Forecast
Rating
A1
Stable
P1
A
Stable
A-1
A
Stable
S&P A Stable
F1
Fitch A Stable
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
About Credit Rating: The government’s credit rating reflects the economy’s level of risk and affects banks, companies and financial bodies in the
market. The rating creates a “ceiling” which acts as a benchmark to their bond pricing. Credit rating indicates the macro-economic status of an
economy and affects foreign investors’ decisions whether to invest in the market.
Source: Ministry of Finance
GDP and Business GDP
(Annual rate of change (%), in Constant Prices)
In the past few years, Israel’s economy has enjoyed high growth rates.
Despite the current economic crisis, Q2 shows signs of recovery.
8.00%
GDP
6.80%
7.00%
6.40%
6.10%
6.00%
5.00%
5.10%
5.20%
Business GDP
6.20%
5.40%
4.40%
5.00%
4.00%
4.00%
2.40%
3.00%
1.80%
2.00%
1.00%
-0.30%
0.00%
-1.00%
-2.00%
-0.60%
-1.60%
-2.40%
-3.00%
-4.00%
-4%
-5.00%
-5.20%
-6.00%
2001
* Estimate.
2002
Source: Ministry of Finance.
2003
2004
2005
2006
2007
2008
2009 Q1
GDP Growth
Israel compared to Advanced Economies*
(Annual rate of change (%), in constant prices)
Since 2004, Israel’s growth rate has exceeded the average
growth rate of advanced economies.
5.4%
5.2%
5.10%
5.0%
5.1%
4.0%
4.1%
3.2%
2.6%
2.50%
3.1%
2.0%
2.1%
3.1%
1.6%
1.3%
1.8%
1.0%
1.1%
0.1%
-1.0%
-0.3%
-0.6%
-2.0%
World Growth
-3.0%
Israel Growth
-4.0%
-5.0%
2001
2002
2003
2004
2005
2006
2007
* Weighted average: US – 39%, Euro area – 46.5%, Japan – 3%, UK – 5%, Asian Newly Industrialized countries – 6.5%
Source: Ministry of Finance.
2008
Major GDP Components
(Annual rate of change (%), in constant prices)
17.5
18
15.5
13
9.9
8.1
8
5.4
4.2
3.7
1.9
3
8.5
6.7
3.0
6.1
4
2.9
3.9
2.7
5.1
2.8
0.9
0.3
-2
-1.9
-2.7
-7
-4.6
-12
2003
Source: Ministry of Finance
2004
2005
2006
2007
Private Consumption
Government Consumption
Investment in Fixed Assets
Exports of Goods and Services
2008
3
Exports of Goods and
Services ($B)
90
80
70
24
21.1
60
50
16
40
30
11.9
27.5
17.5
13.4
20
10
19.2
30.2
57.1
43.3
36.7
39.8
2004
2005
50.3
0
2002
2003
Goods
Source: Ministry of Finance
2006
Services
2007
2008
Israel’s Main Trading Partners
(US$ Billions, excluding diamonds)
20
China is becoming a
leading trade partner for
Israel
2008
18
16
14
11.6
12
10
18
8
6
16
4
1.9
7.1
5.1
2
14
12
1.5
2
1.6
2.5
2.5
1.6
1.6
1.2
1.8
1.8
1.9
0
10
1.9
6.9
4.3
2
um
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el
1.2
1.2
1.4
B
A
6
0.8
2.2
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Ja
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an
Fr
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Tu
S
8
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U
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Th ny
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G
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C
U
10
4
3.9
3.5
1.6
1.2
2.1
2.3
1.6
1.2
1.2
1.8
1.6
1.5
0
1
1.3
um
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el
B
n
pa
Ja
ce
an
Fr
ey
rk
Tu
K
U
an
rl
he
et
N
y
an
ds
Source: Central Bureau of Statistics
ly
Ita
e
Th
m
er
G
na
A
hi
C
S
U
2007
0.7
1.9
EXPORT
IMPORT
Net Foreign Investments in Israel
(B$)
16.8
18
16
14.8
Direct Investments
13.8
14
Total Investments
12
9.5
10
9
9.6
8.3
7.8
8
4.9
6
4.3
4.3
3.3
4
2.4
1.6
2
0
2002
Source: Ministry of Finance
2003
2004
2005
2006
2007
2008
Unemployment and Participation
(As % of Total Labor Force)
“Containment and Breakthrough”, Israel’s Economic Policy, includes Encouragement
of employment and job creation through an increase of the Chief Scientist’s budget,
renovation of educational institutions and budgeting of the Investment Encouragement
Law.
8.0%
57.0%
56.8%
7.6%
56.6%
56.5%
56.5%
56.4%
7.5%
56.4%
7.6%
56.5%
56.1%
56.5%
7.3%
7.0%
56.0%
6.5%
6.7%
6.5%
55.5%
6.0%
6.1%
6.0%
5.9%
55.0%
Unemployment Rate
Participation in the Labor Force
5.5%
54.5%
Q2
Source: Ministry of Finance
Q3
Q4
2008 Q1
Q2
Q3
Q4
2009 Q1
Inflation Rate
(Rate of Change in CPI, end of year)
The Consumer Price Index (CPI) grew by 3.8% during 2008.
7%
6%
6.5%
5%
4%
3.8%
3%
2%
1%
3.4%
3.5%
2007 2008
2009
*
2.4%
1.3%
0.0% 1.4%
1.2%
-0.1%
2004 2005
2006
0%
-1%
-1.9%
-2%
1999
2000
2001 2002
* July 2009 index compared to July 2008
Source: Central Bureau of Statistics, Ministry of Finance
2003
Inflation Rate Worldwide
(Rate of Change in CPI, end of 2008)
Inflationary pressures in Israel have decreased, as a result of the world crisis.
14%
12%
10%
8%
6%
3.8%
4%
2%
Sources: Central Bureau of Statistics, OECD
SA
Fi
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an
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B
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M
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an
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U
J
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itz an
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la
nd
Po
rt
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al
Is
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N
or
w
ay
0%
Growth of Main GDP
Components 2008
Criteria
2008
Real GDP
+ 4.0%
Business GDP
+ 4.4%
Exports
+ 3.0%
Private Consumption
+ 3.9%
Public Consumption
+ 2.8%
Investment in Fixed
Assets
+ 5.1%
Source: Ministry of Finance
Balances
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Gross Public Debt
Budget Deficit and General Government Expenditure
Current Account and Net Foreign Debt
Gross Tax Burden
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Gross Public Debt
(as percentage of GDP)
Since 2003, the gross public debt has been on a downward trend.
99.9%
100%
97.6%
98.2%
94.3%
95%
90%
85.5%
85%
79.8%
78.30%
80%
75%
2002
Source: Ministry of Finance
2003
2004
2005
2006
2007
2008
Budget Deficit and
General Government Expenditure
50.40%
2003
47.60%
General Government
Expenditure (% of GDP)
2004
45.50%
2005
45.00%
2006
2007
44.20%
2008
43.50%
52.00%
50.00%
48.00%
44.00%
42.00%
40.00%
5.30%
2003
3.60%
2004
1.80%
2005
1.00%
2006
2007
46.00%
Budget Deficit
0.00%
2.10%
2008
0.00%
1.00%
Source: Ministry of Finance
2.00%
3.00%
4.00%
5.00%
Current Account Balance and
Net Foreign Debt
In 2003, current account turned positive,
conversely with the decrease of the net foreign debt.
6.0%
5.1%
5.0%
3.2%
4.0%
2.4%
3.0%
Net Foreign Debt
1.2%
2.0%
2.8%
1%
(% of GDP)
1.0% -1.0% -0.8%
0.6%
0.0%
5%
-1.0%
-2.0%
0%
2001 2002
2003 2004
2005 2006
2007 2008
-5%
-2.2%
-5.5%
-10%
Current Account
Surplus
(% of GDP)
-15%
-13.4%
-17.9%
-20%
-22.9%
-25%
-26.2%
-30%
2002
* As percentage of 2007 GDP
Source: Ministry of Finance.
2003
2004
2005
2006
2007
2008*
Gross Tax Burden
(as % of GDP)
Tax burden has been in the vicinity of OECD average since 2003
37.00%
36.40%
35.80%
35.80%
35.90%
34.40%
2003
2004
2005
OECD countries average: 26.4% (as of 2008)
Source: Ministry of Finance, OECD
2006
2007
2008
Central Bank Interest Rates
Israel vs. U.S.A
Coinciding with the FED’s low interest rate, BOI interest rate continues
6%
to decrease.
Bank of Israel Rate (BOI)
5%
4%
3%
2%
U.S. Federal Funds Rate
1%
200
6
1
2
3
4
5
6
7
8
9
10
11
200 1 2
7
1
2
3
4
5
6
7
8
9
10
11
200 1 2
8
1
2
3
4
5
6
7
8
9
10
11
200 1 2
9
1
2
3
4
5
6
7
8
0%
Source: Bank of Israel (BOI), Federal Reserve
NASDAQ & Tel Aviv 100
(monthly average)
Tel Aviv 100 reacts to the current events similarly to the NASDAQ,
yet less drastically.
4,000.00
1200.00
Nasdaq (left scale)
Tel Aviv 100 (right scale)
1100.00
3,500.00
1000.00
900.00
3,000.00
800.00
2,500.00
700.00
600.00
2,000.00
500.00
400.00
1,500.00
300.00
Source: Tel Aviv Stock Exchange (TASE) , World Federation of Exchanges (WFE)
20
09
Ju
ly
20
09
Ja
n
20
08
Ju
ly
20
08
Ja
n
20
07
Ju
ly
20
07
Ja
n
Ju
l2
00
6
Ja
n
20
06
200.00
Ju
l2
00
5
Ja
n
20
05
1,000.00
Global Competitiveness Index,
2008-2009
The World Economic Forum
Ranked Israel
23rd
Out of 134 Countries
Source: World Economic Forum, Global Competitiveness Index, 2008-9
Global Competitiveness Index, 2008/9
SELECTED CATEGORIES
Venture Capital Availability
Availability of Scientists & Engineers
United States
Finland
Sweden
Japan
Israel
India
Denmark
United States
Israel
Singapore
Puerto Rico
Australia
Denmark
Estonia
Greece
New Zealand
Belgium
Switzerland
Netherlands
0
5
10
15
20
25 RANK
0
Quality of Scientific Research Institutions
United States
Israel
Japan
Canada
United States
Germany
Denmark
Finland
Israel
Netherlands
Finaland
Singapore
United Kingdom
France
France
Norway
Iceland
Estonia
Hong Kong SAR
5
10
15
20
25 RANK
Source: World Economic Forum, Global Competitiveness Index, 2008-9
20
30 RANK
Company Spending on R&D
Switzerland
0
10
0
5
10
15
20
25 RANK
Global Competitiveness Index, 2008/9
SELECTED CATEGORIES (con.)
Strength of Investor Protection
Availability of Latest Technologies
New Zealand
Finland
Hong Kong SAR
Israel
Israel
India
Ireland
Sweden
United States
Switzerland
United Kingdom
United States
Japan
Korea, Rep.
Norway
Germany
Denmark
Belgium
Chile
Norway
0
5
10
15
20
0
25 RANK
Utility Patents
Hong Kong SAR
Israel
United Kingdom
Switzerland
New Zealand
Sweden
Singapore
Canada
Germany
Luxemburg
Israel
Australia
Ireland
UK
Canada
Belgium
United States
Italy
Iceland
5
10
15
10
15
20
25 RANK
Legal Rights Index
Taiwan, China
0
5
20
25 RANK
Source: World Economic Forum; Global Competitiveness Index, 2008-9
0
5
10
15
20 RANK
Israel’s Rank in Leading Indices
Business
Competitiveness
Index
2008-9
The Networked Readiness Index 2008–2009
1
Denmark
3
United States
6
13
Taiwan
9
18
Estonia
16
22
25
Israel
23
29
Qatar
24
31
Slovenia
28
39
29
32
46
42
54
India
49
59
61
69
67
G
re
ec
e
74
ro
at
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Ja
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F
Sw inla
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la
nd
Poland
51
C
Brazil
Countries that have been invited for open discussions for joining the OECD
*GCI:Provides a holistic overview of factors critical to productivity and competitiveness
*NRI: Measures the level of ICT (Information and Communication Technologies) development of nations
Source: World Economic Forum; Global Competitiveness Index (GCI) 2008-2009, Global Information Technology Report 2008-2009
SA
China
U
Chile
Russia
2
6
Finland
1
Israel and the OECD
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Real GDP growth in 2007-8
Unemployment Rate in 2007-8
GDP Based on PPP per Capita in 2006
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Real GDP Growth
(Annual percentage of change, partial list)
As many OECD countries were highly influenced by the recession in 2008,
12%
Israel only experienced a relatively mild decay in growth rate.
2007:
5.3%
10%
2008:
4.0%
8%
6%
4%
2%
0%
07’ 08’
-2%
-4%
Slo
Tu
Lu
Ko
rke
xe
va
m b re a
kR
y
ou
ep
rg
ub
lic
Source: Ministry of Finance, IMF
Isr
ae
l
Ire
Sw
Ca
Fin
Sp
lan
ain
na
ed
lan
da
en
d
d
Un
Un
Sw
Ja
pa
ite
i
it z
n
e rl
d S te d K
a
tat
ing
nd
es
do
m
De
n
Ne
wZ
ma
ea
rk
la
nd
Unemployment Rate
(harmonized)
08’
07’
Israel
Finland
Greece
Portugal
Sw itzerland
08’ 07’
Korea
Norw ay
Hungary
United States
Ireland
Spain
08’
07’
Euro area
08’
07’
Total OECD
0%
Source: OECD, Ministry of Finance
2%
4%
6%
8%
10%
GDP per capita
based on purchasing-power-parity (PPP)
2007, (in US$)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
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ite
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Un
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No bou
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Source: OECD
International Treaties
Press for desired slide or continue:
Israel’s Free Trade Agreements
Avoidance of Double Taxation Agreements
Cooperation in Industrial R&D Agreements
Protection of Investments Agreements
International Organization Memberships
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Israel’s Free Trade
Agreements
1985
USA
1992
EFTA
Egypt
1997
Turkey
Jordan
1997
Canada
1999
Mexico
2000
European Union
2007
MERCOSUR*
(Association Agreement)
* Member states of the common market of the south, not yet in force
QIZ Agreement
Avoidance of Double
Taxation Agreements
Austria
Croatia
Hungary
Belarus
Denmark
India
Belgium
Estonia
Ireland
Brazil
Ethiopia
Italy
Bulgaria
Finland
Jamaica
Canada
France
Japan
China
Germany
Latvia
Czech
Republic
Greece
Lithuania
* The agreement with Estonia has only been signed initially
Avoidance of Double
Taxation Agreements (con.)
Luxembourg
Russia
Switzerland
Mexico
Singapore
Thailand
Moldova
Slovakia
The Netherlands
Norway
Slovenia
Turkey
Philippines
South Africa**
Ukraine
Portugal *
South Korea
United Kingdom
Poland
Spain
Uzbekistan
Romania
Sweden
USA
* The agreement with Portugal has been recently ratified
** Not yet ratified by South Africa.
Cooperation in Industrial R&D
Agreements
Austria
India
Sweden
Belgium
Ireland
UK
Canada
Italy
USA
China
Korea
Finland
Netherlands
France
Portugal
Germany
Singapore
Hong Kong
Spain
Protection of Investment
Agreements
Albania
Croatia
Guatemala
Argentina
Cyprus
India
Armenia
Czech Republic
Kazakhstan
Azerbaijan
El-Salvador
Korea
Belarus
Estonia
Latvia
Bulgaria
Georgia
China
Germany
Protection of Investment
Agreements (con.)
Lithuania
Turkmenistan
Moldova
Ukraine
Poland
Uruguay
Romania
Uzbekistan
Slovakia
Slovenia
South Africa *appending ratification
Thailand
Turkey
Main International Economic
Organizations Membership:
Israel is a member in leading international
economic organizations:
•WBG
•IMF
•WTO
•OECD (candidate)
A more detailed list:
BIS | BSEC (observer) | CE (observer) | CERN (observer) | EBRD | FAO | IADB | IAEA | WBG – IBRD, IFC, IDA,
MIGA | ICAO | ICC | ICCT (signatory) | ICFTU | IFAD | IFRCS (observer) | ILO | IMF | IMO | Interpol | IOC | IOM | ISO
| ITU | OAS (observer) | OECD (candidate) | OPCW (signatory) OSCE (partner) | PCA | UN | UNCTAD | UNECE |
UNEP | UNESCO | UNHCR | UNIDO | UPU | WCO | WFP | WHO | WIPO | WMO | WTOO | WTRO | WTO | ICSID
Relevant Sites
International Affairs Department Homepage:
www.financeisrael.mof.gov.il
Government Institutions:
Ministry of Finance
OECD Profile on Israel
Bank of Israel (BOI)
Central Bureau of Statistics
Israeli Government Portal
Israel Securities Authority
Ministry of Industry, Trade and Labor
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We welcome your feedback!
Mr. Roni Hershkovitz
Acting Director
Overseas Economic Information
International Affairs Department
Ministry of Finance
Jerusalem
Israel
Mr. Assaf Luxembourg
International Affairs Department
Ministry of Finance
Jerusalem
Israel
Contact Us!
[email protected]
Visit our website!
www.financeisrael.mof.gov.il
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