Transcript שקופית 1

STATE OF ISRAEL
MINISTRY OF FINANCE
INTERNATIONAL AFFAIRS DEPARTMENT
ECONOMIC HIGHLIGHTS
1st Quarter 2010
Initial Conclusive 2009 Figures Included
Contents
Economic Figures
Balances
International Comparisons
Israel and the OECD
Note:
International Treaties
Relevant Sites
Contact Us
You can return to the beginning
of each chapter by clicking the
emblem of Israel on the top of
each slide.
Economic Figures
Main Economic 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
BACK TO CONTENTS
Main Economic Indicators
2008
2009
2009
Q1
2009
Q2
2009
Q3
2009
Q4
GDP
(current prices in $B)*
184.1
185.9
45.9
46.1
46.5
47.0
Real GDP Growth Rate
(%)
4.0%
0.7%
-2.7%
1.3%
3.6%
4.9%
--
--
--
--
Criteria
GDP per Capita
(PPP adjusted)**
$28,473
None yet
2.2%
-1.1%
-4.4%
-0.3%
1.7%
2.9%
Exports (Goods & Services)** $B*
(As Percentage of GDP)
83.3
(45.1%)
73.4
(39.5%)
17.6
(38.4%)
17.6
(38.1%)
18.2
(39.2%)
19.9
(42.3%)
Imports (Goods & Services)** $B*
(As Percentage of GDP)
81.3
(44.0%)
69.9
(37.6%)
16.9%
(36.9%)
17.1
(37.0%)
17.7
(38.0%)
18.2
(38.8%)
6.1%
7.6%
7.6%
7.9%
7.7%
7.4%
GDP per Capita Growth Rate
(%, 2005 prices)
Unemployment Rate
(%)
*Using a public exchange rate of 1$ = 3.76NIS
** In current prices
Source: Ministry of Finance, IMF
CONTINUE
Main Economic Indicators
Criteria
2006
2007
2008
2009
Total Gross Debt (Percentage of GDP)
84.5%
78.3%
77.2%
79.6%
Government Expenditure
(Percentage of GDP)
44.8%
44.0%
42.9%
42.7%
Current Account Surplus (% of GDP)
5.1%
2.9%
0.7%
3.7%
Inflation Rate (CPI, end of year)
-0.1%
3.4%
3.8%
3.9%
CONTINUE
Source: Ministry of Finance
Main Economic Indicators
Domestic Bonds
Rating Firm
Overseas Bonds
Term
Forecast
Rating
Long
Moody's
Rating
A1
A1
Stable
Standard & Poor's
Fitch
Short
-
Long
AA-
P1
A
Stable
Short
A-1+
Long
A+
A-1
A
Stable
Short
-
F1
Moody's / S&P & Fitch
All 3 rating firms have reaffirmed Israel’s rating, without any downgrade,
during the global economic crisis in 2009.
Aa3/AA-
A1/A+
A2/A
A3/A-
Baa1/BBB+
Baa2/BBB
Baa3/BBB-
Moody's
1992
1993 1994
1995 1996
1997
1998 1999
S&P
2000 2001
Fitch
2002 2003
2004
2005 2006
2007 2008
2009
CONTINUE
Source: Ministry of Finance
GDP and Business GDP
Annual rate of change (%), in Constant Prices
8%
7%
6%
6.4%
6.0%
5.3%
5.1%
5.7%
5.2%
5.2%
4.9%
5%
4.4%
4.0%
4%
3.6%
3.1%
3%
2%
1.3%
0.7%
1%
1.2%
0.0%
0%
-1%
-2%
In recent years, prior to the global economic
3 out of 4 Quarter of 2009
crisis, the Israeli economy experienced high
recorded growth, indicating
-3%
-4%
-5%
-2.7%
growth rates
GDP
Business GDP
a fast recovery from the
-4.8%
global economic crisis
-6%
2005
2006
2007
2008
2009
2009 Q1
2009 Q2
2009 Q3
2009 Q4
CONTINUE
Source: Ministry of Finance.
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.
5.3%
5.10%
5.0%
5.2%
5.1%
4.0%
4.1%
3.2%
3.1%
3.1%
2.6%
2.50%
2.0%
2.1%
1.6%
1.5%
1.0%
1.0%
0.0%
-1.0%
-0.7%
-2.0%
Advanced Economies *
Israel Growth
-3.0%
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
CONTINUE
Major GDP Components
(Annual rate of change (%), in constant prices)
Global Economic Crisis
15.0
16
11.3
8.5
11
6.7
6
3.3 1.8
4.1
4.2
6
3.4
4.3
3.6
3
4.5
2.8
3
1.1
0.8
1
-4
-9
In 2009, due to the global economic crisis, Investment in Fixed Assets and Export of
Goods and Services contracted severely.
However, the strength and resiliency of Israel's economy in a time of crisis is
demonstrated by the positive growth of both Private Consumption and Government
Consumption during the same period.
-6.5
-12.7
-14
2005
Private Consumption
2006
Government Consumption
2007
Investment in Fixed Assets
2008
2009
Exports of Goods and Services
CONTINUE
Source: Ministry of Finance
Exports of Goods and
Services ($B)
90
80
24.1
70
21.1
60
19.2
50
17.4
16
40
13.4
11.9
57.2
30
50.3
43.3
20
10
27.5
30.2
36.7
39.8
0
2002
2003
2004
2005
Goods
2006
2007
2008
Services
CONTINUE
Source: Ministry of Finance
Israel’s Main Trading Partners
(US$ Billions, excluding diamonds)
20
18
16
Exports to the U.S. grew in 2009, as
imports declined
14
18
11.6
Import
Export
12
16
10
14
8
6
12
1.9
11.8
4
1.1
7
10
2
1.6
1.6
2
4
2.5
8
1.6
4.2
2.5
1.8
1.8
1.2
0.8
1.9
2.2
0.2
2008
2.8
0
US
A
6
4
1.4
0.9
3.4
3.5
5.4
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1.5
2
1.3
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0.1
1.1
1.1
0.5
1.4
1.4
1.5
2009
2.5
2.1
1.8
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*Since July 1997 the data on trade with Hong-Kong is added to the data on China
Source: Central Bureau of Statistics
y
CONTINUE
Net Foreign Investments in Israel
(In $ Billion)
18
16.9
Direct Investments
16
14.8
13.8
14
Total Investments
12
9.5
10
9.6
9
8.3
7.8
8
4.9
6
4.3
4.3
3.3
4
2.4
1.7
2
0
2002
2003
2004
2005
2006
2007
2008
CONTINUE
Source: Ministry of Finance
Unemployment and Participation
(As % of Total Labor Force)
8.5%
57.0%
56.7%
56.6%
56.6%
8.0%
56.5%
56.4%
7.9%
56.4%
56.6%
56.5%
7.6%
56.5%
7.5%
7.7%
7.40%
7.0%
6.5%
56.0%
55.5%
6.5%
As Israel grows out of the global
6.0%
recession, since 2009:
6.1%
6.0%
> unemployment is decreasing
5.9%
5.5%
55.0%
> participation in labor force is increasing
Unemployment Rate
Participation in the Labor Force
5.0%
54.5%
2008 Q1
Q2
Q3
Q4
2009 Q1
Q2
Q3
Q4
CONTINUE
Source: Ministry of Finance
Inflation Rate
(Rate of Change in CPI, end of year)
7%
6.5%
The Consumer Price Index (CPI)
grew by 4.0% during 2009.
6%
5%
4.0%
3.8%
4%
3.4%
2.4%
3%
1.4%
2%
1.2%
1.3%
1%
-1.9%
-0.1%
0.0%
0%
-1%
-2%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
CONTINUE
* July 2009 index compared to July 2008
Source: Central Bureau of Statistics, Ministry of Finance
Inflation Rate Worldwide
(Annual rate of change in CPI for 2009, estimated)
7%
2008 (left column)
2009 (right column)
The Israeli economy demonstrated a high level of stability
compared to other countries throughout the global economic crisis
5%
4.5%
3.8%
4.1%
4.1%
3.8%
3.7%
3.30%
2.6%
3%
2.4%
2.6%
2.33%
1.4%
1%
1%
0.14%
-0.40%
-1%
0.15%
-0.39%
-0.58%
-1.13%
-1.58%
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-3%
CONTINUE
Sources: Ministry of Finance, IMF
Growth of Main GDP
Components for Previous Year
Criteria
Real GDP
Business GDP
2009
+ 0.7%
0.0%
Exports
- 11.8%
Private Consumption
+ 1.6%
Public Consumption
+ 1.5%
Investment in Fixed Assets
- 6.6%
NEXT CHAPTER: BALANCES
Source: Ministry of Finance
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Balances
Gross Public Debt
Budget Deficit – Target and Execution
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, gross public debt has been on a consistent downward trend, only interrupted by the
extraordinary circumstances surrounding the 2009 global economic crisis
105%
99.0%
100%
97.4%
93.8%
95%
90%
84.5%
85%
79.9%
78.3%
80%
77.2%
75%
2003
2004
2005
2006
2007
2008
2009
CONTINUE
Source: Ministry of Finance
Budget Deficit – Target and Execution
(In $ Billion)
1.90$B
0.5
0.10$B
-0.37$B
-0.78$B
-1.05$B
-1.5
-2.04096$B
-2.39840$B
-3.5
-3.17$B
-4.02$B
-4.02$B
-5.5
For the first time in its history, Israel
enacted a biennial budged for the
years 2009-2010
-7.5
In 2009 Israel came in under budget
target.
-9.5
-9.02$B
Budget Execution
Budget Target
-10.89$B
-11.5
Q1
Q2
Q3
Q4
2008 Total
Q1
Q2
Q3
Q4
2009 Total
CONTINUE
Source: Ministry of Finance
Budget Deficit and
General Government Expenditure
2009
2008
2007
Budget Deficit
(% of GDP)
5.10%
2.20%
0.00%
2006
0.90%
2005
2009
42.90%
2008
1.80%
2004
0.00%
42.90%
3.50%
1.00%
2.00%
3.00%
4.00%
44.00%
5.00%
44.80%
45.40%
General Government
Expenditure (% of GDP)
47.40%
2007
2006
2005
2004
48.00% 47.00% 46.00% 45.00% 44.00% 43.00% 42.00% 41.00% 40.00%
CONTINUE
Source: Ministry of Finance
Current Account Balance and
Net Foreign Debt
In 2003, the current account balance turned positive accompanied by an decrease of net foreign debt
2003
2004
2005
2006
2007
2008
-24.6%
-24.8%
2009
0%
-1.8%
-5%
Current Account Surplus
-4.6%
-10%
(% of GDP)
-11.1%
-15%
-14.9%
5.0%
-20%
5.0%
-25%
4.0%
3.1%
3.0%
1.2%
-27.9%
-30%
2.8%
2.3%
Net Foreign Debt
2.0%
1%
(% of GDP)
1.0%
0.0%
2002
2003
2004
2005
2006
2007
2008
-1.0%
-0.8%
CONTINUE
Source: Ministry of Finance.
Gross Tax Burden
(as % of GDP)
35.5%
35.6%
35.9%
36.4%
33.8%
31.5%
2004
2005
2006
2007
2008
2009
OECD countries average: 35.8% (2007 average)
OECD countries average: 35.2% (2008 average estimated by OECD)
NEXT CHAPTER: INTERNATIONAL COMPARISONS
Source: Ministry of Finance, OECD
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International Comparisons
Central Bank Interest Rates: Israel and U.S.A
NASDAQ and Tel-Aviv 100 (monthly average)
Global Competitive Index
BACK TO CONTENTS
Central Bank Interest Rates:
Israel and U.S.A
6%
5%
The Bank of Israel was the first in the
western world to raise interest since
the outburst of the economic crisis.
4%
The rate was raised gradually from
0.5% to 1.25%
3%
2%
Bank of Israel Rate (BOI)
1%
U.S. Federal Funds Rate
3
2
1
20
10
11
12
9
10
8
7
6
5
4
3
2
20 1
09 2
1
9
10
11
8
7
6
5
4
3
2
20 1
08 2
1
9
10
11
8
7
6
5
4
0%
-1%
CONTINUE
Source: Bank of Israel (BOI), Federal Reserve
NASDAQ & Tel Aviv 100
(monthly average)
Nasdaq (left scale)
4,000.00
1200.00
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
Tel Aviv 100 corresponds with the
NASDAQ to current events
1,500.00
400.00
300.00
Source: Ministry of Finance
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1,000.00
CONTINUE
Global Competitiveness Index
2009-2010
The World Economic Forum
Ranked Israel
27th
Out of 134 Countries
CONTINUE
Source: World Economic Forum, Global Competitiveness Index, 2009-2010
Global Competitiveness Index 2009/10
(selected categories, rank circled in red)
Utility Patents
Quality of Scientific Research Institutions
Company spending on R&D
Strength of Investor Protection
CONTINUE
Source: World Economic Forum, Global Competitiveness Index, 2009-2010
Global Competitiveness Index 2009/10
(selected categories, rank circled in red)
Capacity for Innovation
Availability of Latest Technologies
Personal Computers
Venture Capital Availability
NEXT CHAPTER: ISRAEL AND THE OECD
Source: World Economic Forum, Global Competitiveness Index, 2009-2010
BACK TO CONTENTS
Israel and the OECD
Unemployment Rate in 2007-2008
GDP Based on PPP per Capita in 2006
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Unemployment Rate
(harmonized)
20%
2008: Israel stood at the total OECD average
2009: Israel stood below the total OECD average
18.1%
18%
During 2009, with the global economic crisis in the
background, Israel’s unemployment grew mildly compared
with some OECD members.
16%
7.6%
14%
6.1%
12%
11.8%
11.4%
10.1%
9.4%
10%
8%
8.3%
7.6%
6.1%
9.6%
9.3%
7.8%
6.0%
8.2%
7.8%
6.4%
6.0%
5.8%
6%
4.4%
3.6% 3.5%
3.5%
3.2%
2.8%
4%
3.3%
2%
2008
2009
0%
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Source: Ministry of Finance, OECD
CONTINUE
GDP per capita
based on Purchasing-Power-Parity (PPP), 2008, current prices in US$
90,000
80,000
70,000
60,000
50,000
27901.8
*
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20,000
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* Estimated
NEXT CHAPTER: INTERNATIONAL TREATIES
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International treaties
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
1997
Turkey
1997
Canada
QIZ Agreements
Egypt
(2004)
Jordan
(1998)
1999
Mexico
2000
European Union (Association Agreement)
2007
MERCOSUR (Argentina, Brazil, Paraguay & Uruguay, not yet in force)
CONTINUE
Source: Ministry of Finance
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
CONTINUE
Source: Ministry of Finance
Avoidance of Double
Taxation Agreements
Luxembourg
Russia
Switzerland
Mexico
Singapore
Thailand
Moldova
Slovakia
Netherlands
Norway
Slovenia
Turkey
Philippines
South Africa
Ukraine
Portugal
South Korea
United kingdom
Poland
Spain
Uzbekistan
Romania
Sweden
U.S.A
Vietnam
Taiwan
Source: Ministry of Finance
CONTINUE
Cooperation in Industrial R&D
Agreements
Austria
India
Sweden
Belgium
Ireland
United kingdom
Canada
Italy
U.S.A
China
Korea
Finland
Netherlands
France
Portugal
Germany
Singapore
Hong Kong
Spain
CONTINUE
Source: Ministry of Finance
Protection of Investment
Agreements
Albania
Cyprus
India
Argentina
Czech Republic
Kazakhstan
Armenia
El Salvador
Latvia
Azerbaijan
Estonia
Lithuania
Belarus
Ethiopia
Moldova
Bulgaria
Georgia
Mongolia
China
Guatemala
Poland
Croatia
Germany
Romania
CONTINUE
Source: Ministry of Finance
Protection of Investment
Agreements
Serbia
Ukraine
Slovakia
Uruguay
Slovenia
Uzbekistan
South Africa *
South Korea
Thailand
Turkey
Turkmenistan
*pending ratification
Source: Ministry of Finance
CONTINUE
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
NEXT CHAPTER: RELEVANT SITES
Source: Ministry of Finance
BACK TO CONTENTS
Relevant Sites
Ministry of Finance International Affairs Website
www.financeisrael.mof.gov.il
Israeli 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
CONTACT US
BACK TO CONTENTS
WE WELCOME YOUR FEEDBACK
Mr. Roni Hershkovitz
Director
VISIT OUR WEBSITE:
www.financeisrael.mof.gov.il
Overseas Economic Information
International Affairs Department
CONTACT US:
Ministry of Finance
Jerusalem
[email protected]
Israel
Mr. Assaf Luxembourg
Overseas Economic Information
International Affairs Department
Ministry of Finance
Jerusalem
Israel
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