Transcript שקופית 1

STATE OF ISRAEL
MINISTRY OF FINANCE
INTERNATIONAL AFFAIRS DEPARTMENT
ECONOMIC HIGHLIGHTS
3rd Quarter 2009
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
2007
2008
2008
Q3
2008
Q4
2009
Q1
2009
Q2
GDP
(current prices in $B)*
181.5
191.8
46.1
46.0
45.7
45.8
GDP Real Growth Rate
(%)
5.2%
4.0%
0.9%
-1.4%
-3.2%
1.0%
$24,576
$24,920
--
--
--
--
5.3%
2.1%
--
--
--
--
Exports (Goods & Services)** $B*
(As Percentage of GDP)
78.1
(44.2%)
80.5
(44.5%)
21.2
(46.0%)
19.0
(41.2%)
17.5
(38.4%)
17.7
(38.8%)
Imports (Goods & Services)** $B*
(As Percentage of GDP)
79.2
(44.8%)
80.7
(44.3%)
20.2
(43.7%)
18.7
(40.7%)
16.4
(35.9%)
16.1
(35.2%)
7.3%
6.1%
6.0%
6.5%
7.6%
8.0%
Criteria
GDP per Capita
(PPP adjusted)**
GDP per Capita Growth Rate
(%, 2005 prices)
Unemployment Rate
(%)
*Using public exchange rate.
** In current prices
CONTINUE
Main Economic Indicators
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%
CONTINUE
Source: Ministry of Finance
Main Economic Indicators
Domestic Bonds
Rating Firm
Overseas Bonds
Term
Forecast
Rating
Moody's
Standard & Poor's
Fitch
Long
Rating
A1
A1
Stable
Short
-
Long
AA-
P1
A
Stable
Short
A-1+
Long
A+
A-1
A
Stable
Short
-
F1
Moody's / S&P & Fitch
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%
6.80%
7%
6%
6.40%
6.10%
5.00%
5.10%
6.20%
Despite the current economic
5.20%
5.40%
crisis, 2009 Q2 shows signs
4.40%
5%
4.00%
of recovery.
4%
3%
2%
0.90%
1.00%
0.30%
1%
0.70%
0%
-1%
In the past few years, Israel’s economy
-2%
-1.40%
has enjoyed high growth rates.
-3%
-2.50%
-3.20%
-4%
-5%
GDP
Business GDP
-4.80%
-6%
2004
2005
2006
2007
2008
2008 Q3
2008 Q4
2009 Q1
2009 Q2
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.
5.4%
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%
-0.3%
-0.6%
-1.0%
-2.0%
-3.0%
-4.0%
World Growth
Israel Growth
-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
CONTINUE
Major GDP Components
(Annual rate of change (%), in constant prices)
17.5
18
15.5
13
9.9
8.1
8
8.5
6.7
5.4
4.2
3.7
3.0
6.1
4
2.9
5.1
3.9
2.7
2.8
1.9
3
3
0.9
0.3
-2
-1.9
-2.7
-7
-4.6
-12
2003
Private Consumption
Source: Ministry of Finance
2004
Government Consumption
2005
2006
Investment in Fixed Assets
2007
Exports of Goods and Services
2008
CONTINUE
Exports of Goods and
Services ($B)
90
80
70
24
21.1
60
19.2
50
17.5
16
40
11.9
13.4
57.1
30
50.3
43.3
20
10
27.5
30.2
39.8
36.7
0
2002
2003
2004
2005
Goods
2006
2007
2008
Services
CONTINUE
Source: Ministry of Finance
Israel’s Main Trading Partners
(US$ Billions, excluding diamonds)
China is becoming a leading trade
partner for Israel
20
18
16
14
11.6
12
2008
10
18
8
16
1.5
6
1.9
14
4
7.1
5.1
12
10
1.6
2.5
2.5
3.9
2
10
2
1.6
1.6
1.2
0.8
1.8
1.8
1.9
2.2
1.2
1.4
0
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2007
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6
1.2
4
1.9
6.9
4.3
2
1.6
1.2
2.1
2.3
1.6
3.5
1.8
1.2
1.2
0.7
1.6
1.5
1.9
EXPORT
1
1.3
IMPORT
0
B
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Th
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A
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S
C
U
rla
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s
CONTINUE
Source: Central Bureau of Statistics
Net Foreign Investments in Israel
(B$)
16.8
18
14.8
Direct Investments
16
13.8
14
Total Investments
12
9.5
9
10
9.6
8.3
7.8
8
4.9
6
4.3
4.3
3.3
4
2.4
1.6
2
0
2002
2003
2004
2005
2006
2007
2008
CONTINUE
Source: Ministry of Finance
Unemployment and Participation
(As % of Total Labor Force)
August 2009 shows signs of decrease in unemployment for the fist time since May 2008. The 1%
downtrend measured will have a positive effect on Q3 unemployment rate, containing the global crisis’s
effect on the Israeli economy.
8.5%
57.0%
56.7%
56.6%
8.0%
56.5%
56.5%
56.4%
56.4%
56.5%
7.6%
56.5%
8.0%
56.1%
7.5%
7.0%
56.0%
7.3%
6.5%
6.5%
6.7%
55.5%
6.0%
6.0%
6.1%
5.9%
55.0%
5.5%
Unemployment Rate
Participation in the Labor Force
5.0%
54.5%
Q3
Q4
2008 Q1
Q2
Q3
Q4
2009 Q1
Q2
CONTINUE
Source: Ministry of Finance
Inflation Rate
(Rate of Change in CPI, end of year)
The Consumer Price Index (CPI) grew by 3.8% during 2008.
6.5%
7%
6%
5%
3.8%
3.4%
4%
3.5%
*
2.4%
3%
2%
1.4%
1.2%
1.3%
1%
-1.9%
0.0%
-0.1%
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
(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%
nd
Ic
el
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Tu
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Hu
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ar
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er
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US
A
No
rw
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Is
ra
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Sw
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Ja
pa
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0%
CONTINUE
Sources: Central Bureau of Statistics, OECD
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%
NEXT CHAPTER: BALANCES
Source: Ministry of Finance
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Balances
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%
98.2%
97.6%
94.3%
95%
90%
85.5%
85%
79.8%
80%
77.10%
75%
2002
2003
2004
2005
2006
2007
2008
CONTINUE
Source: Ministry of Finance
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%
2.00%
3.00%
4.00%
5.00%
CONTINUE
Source: Ministry of Finance
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%
1.2%
2.0%
1.0%
2.8%
2.4%
3.0%
Net Foreign Debt
1%
-1.0%
-0.8%
(% of GDP)
0.0%
5%
0.6%
-1.0%
0%
-2.0%
2001
2002
2003
2004
2005
2006
2007
2008
-2.2%
-5%
-5.5%
Current Account Surplus
(% of GDP)
-10%
-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*
CONTINUE
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
2006
2007
2008
OECD countries average: 26.4% (as of 2008)
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
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Central Bank Interest Rates:
Israel and U.S.A
The Bank of Israel announced that the interest rate
for September 2009 will increase by 0.25% to a level
of 0.75%, being the first in the western world to raise
interest since the economic crisis.
6%
5%
4%
3%
2%
Bank of Israel Rate (BOI)
1%
U.S. Federal Funds Rate
20 0
6
1
2
3
4
5
6
7
8
9
10
11
20 0 12
7
1
2
3
4
5
6
7
8
9
10
11
20 0 12
8
1
2
3
4
5
6
7
8
9
10
11
20 0 12
9
1
2
3
4
5
6
7
8
0%
CONTINUE
Source: Bank of Israel (BOI), Federal Reserve
NASDAQ & Tel Aviv 100
(monthly average)
Tel Aviv 100 corresponds with the NASDAQ to current events
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
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
CONTINUE
Global Competitiveness Index
2008-2009
The World Economic Forum
Ranked Israel
23rd
Out of 134 Countries
CONTINUE
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
India
Israel
United States
Denmark
Israel
Singapore
Puerto Rico
Australia
Denmark
Estonia
Greece
New Zealand
Belgium
Switzerland
Netherlands
0
5
10
15
20
0
25
5
10
15
20
25
Rank
Rank
Quality of Scientific Research Institutions
Company Spending on R&D
United States
30
Switzerland
Israel
Japan
Canada
United States
Germany
Denmark
Finland
Israel
Netherlands
Finaland
Singapore
United Kingdom
France
France
Norway
Iceland
Estonia
Hong Kong SAR
0
5
10
15
20
25
Rank
0
5
10
15
20
25
Rank
CONTINUE
Source: World Economic Forum, Global Competitiveness Index, 2008-9
Global Competitiveness Index 2008/9
(selected categories)
Strength of Investor Protection
Availability of Latest Technologies
Hong Kong SAR
Finland
United Kingdom
Israel
New Zealand
India
Singapore
Sweden
Germany
Switzerland
Israel
United States
Ireland
Korea, Rep.
Canada
Germany
United States
Belgium
Iceland
Norway
0
5
10
15
20
0
Rank
5
10
15
20
25
20
25
Rank
Utility Patents
Legal Rights Index
Taiwan, China
New Zealand
Israel
Hong Kong SAR
Switzerland
Israel
Sweden
Ireland
Canada
United States
Luxemburg
United Kingdom
Australia
Japan
Norway
UK
Denmark
Belgium
Chile
Italy
0
5
10
15
20
25
Rank
0
5
10
15
Rank
CONTINUE
Source: World Economic Forum; Global Competitiveness Index, 2008-9
Global Competitiveness Index 2008/9
(selected categories)
The Networked Readiness Index 2008–2009
Denmark
1
United States
3
6
Finland
Taiwan
13
18
Estonia
25
Israel
29
Qatar
31
Slovenia
39
Chile
46
China
54
India
59
Brazil
69
Poland
Russia
74
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
NEXT CHAPTER: ISRAEL AND THE OECD
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Source: World Economic Forum; Global Competitiveness Index (GCI) 2008-2009, Global Information Technology Report 2008-2009
Israel and the OECD
Real GDP Growth
Unemployment Rate in 2007-2008
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,
11%
Israel only experienced a relatively mild decay in growth rate.
2007:
5.3%
9%
2008:
4.0%
7%
5%
3%
1%
07’ 08’
-1%
-3%
S lo
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Ca
Fin
Sp
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da
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Un
Un
Sw
Ja
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ited
itze
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K in
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De
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ark
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lan
d
CONTINUE
Source: Ministry of Finance, IMF
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%
2%
4%
6%
8%
10%
CONTINUE
Source: OECD, Ministry of Finance
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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Source: OECD
BACK TO CONTENTS
NEXT CHAPTER: INTERNATIONAL TREATIES
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
Jordan
1999
Mexico
2000
European Union (association agreement)
2007
MERCOSUR (Member states of the common market of the south, not yet in force)
CONTINUE
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
CONTINUE
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
* The agreement with Portugal has been recently ratified
** Not yet ratified by South Africa.
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
Protection of Investment
Agreements
Austria
Albania
Cyprus
Belgium
Argentina
Czech republic
Canada
Armenia
El Salvador
China
Azerbaijan
Estonia
Finland
Belarus
Georgia
France
Bulgaria
Germany
Germany
China
Guatemala
Hong Kong
Croatia
India
CONTINUE
Protection of Investment
Agreements
Kazakhstan
Slovenia
Korea
South Africa *
Latvia
Thailand
Lithuania
Turkey
Moldova
Turkmenistan
Poland
Ukraine
Romania
Uruguay
Slovakia
Uzbekistan
*appending ratification
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
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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
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WE WELCOME YOUR FEEDBACK
Mr. Roni Hershkovitz
VISIT OUR WEBSITE:
Acting Director
Overseas Economic Information
International Affairs Department
www.financeisrael.mof.gov.il
CONTACT US:
Ministry of Finance
Jerusalem
[email protected]
Israel
Mr. Assaf Luxembourg
International Affairs Department
Ministry of Finance
Jerusalem
Israel
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