October 25th, 2015
www.financeisrael.mof.gov.il
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
2
October 25th, 2015
Economic Figures
Criteria
2013
2014
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
GDP
(current prices in $B)*
292.6
306.1
78.3
78.0
73.6
71.1
73.7
Real GDP growth rate
(% change)
3.3%
2.6%
3.4%
0.2%
6.1%
1.8%
0.1%
36,316
37,272
9,563
9,479
8,889
8,556
8,827
1.3%
0.6%
0.4%
-1.8%
3.9%
-0.1%
-1.7%
97.1
98.7
24.6
23.9
24.5
23.6
22.9
33.2%
32.3%
31.4%
30.6%
33.4%
33.2%
31.1%
GDP per capita
(Current $)
GDP per capita growth rate
(%, constant prices)
Exports (goods & services), $B
(As % of GDP)
Imports (goods & services), $B
(As % of GDP)
91.9
93.7
23.2
24.5
22.7
21.0
20.6
31.4%
30.6%
29.6%
31.4%
30.9%
29.5%
27.9%
Unemployment rate
6.2%
5.9%
6.1%
6.2%
5.6%
5.4%
5.1%
* Using a periodic average exchange rate.
Source: CBS, IMF
3
October 25th, 2015
Economic Figures
Criteria
2007
2008
2009
2010
2011
2012
2013
2014
Public debt
(As % of GDP)
74.0%
72.9%
75.1%
70.9%
68.9%
67.9%
67.2%
66.7%
General government
expenditure
(As % of GDP)
42.2%
41.4%
41.5%
40.4%
39.6%
40.1%
40.4%
40.1%
Current account surplus
(As % of GDP)
4.0%
1.4%
4.0%
3.5%
2.6%
1.5%
2.8%
2.9%
Inflation rate
(CPI, yearly change, %)
3.4%
3.8%
3.9%
2.7%
2.2%
1.6%
1.8%
-0.2%
Budget deficit (Central)
(As % of GDP)
0.0%
2.1%
4.8%
3.4%
3.1%
3.9%
3.1%
2.7%
Source: CBS, IMF
4
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
5
October 25th, 2015
GDP and Business GDP
Annual rate of change, constant prices, 2010
Source: CBS
6
October 25th, 2015
GDP Growth
Israel compared to advanced economies, annual rate of change, constant prices
• Since 2004, Israel’s GDP growth rate has exceeded
the average growth rate of advanced economies.
• In 2009, while most economies experienced a
decline in GDP as a result of the global economic
crisis, Israel maintained a steady 1.9% growth.
Source: Euro Area and OECD - OECD database, U.S - OECD database BEA, Israel - CBS
7
October 25th, 2015
GDP Components
Real annual percentage change
Effects of the global
economic crisis
Source: CBS
8
October 25th, 2015
GDP per Capita
$ U.S, Current prices, Current PPP, 2014 (or latest available)
Source: OECD
9
October 25th, 2015
Output Gap
As percentage of Potential GDP, 2014
The actual - potential GDP Difference.
Positive index means that actual output is higher than potential.
Source: OECD
10
October 25th, 2015
Stock Exchange Indices
Percentage Change, the change since the beginning of period until the end of period
Source: TASE, Bloomberg
11
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
12
October 25th, 2015
Exports of Goods and Services
As % of GDP
Effects of the global
economic crisis
Source: CBS
13
October 25th, 2015
Main Export of Goods Destinations
As a share of total exports of goods
Source: CBS
14
October 25th, 2015
Main Trading Partners
$ US Billions, 2014
* The data on trade with Hong-Kong is added to the data regarding China
** The data on trade with Luxemburg is added to the data regarding Belgium
Source: CBS
15
October 25th, 2015
Current Account Surplus
As % of GDP
Source: CBS
16
October 25th, 2015
Foreign Investments
$ US Billions
* In 2006, a large acquisition by Teva Pharmaceutical Industries Ltd. was included in the data.
Source: CBS
17
October 25th, 2015
Exchange Rates
The change in the specified currency relative to the US $., the figures are calculated for the beginning and the
end of the specified period.
An increase means a depreciation of the specified currency relative to the US$.
Source: Pacific Exchange Rate Service
18
October 25th, 2015
Real effective exchange rate of the NIS
January 1990 = 100
Source: BIS
19
October 25th, 2015
Terms of Trade
2005 average = 100
Terms of Trade = Export Prices to Import Prices Ratio
Source: CBS
20
October 25th, 2015
Israel’s Free Trade Agreements
1985
USA
2013
Colombia*
1992
EFTA
2014
India**
1997
Turkey
1997
Canada
1999
Mexico
2000
European Union (Association Agreement)
2007
MERCOSUR
* Yet to be ratified
** Under negotiations
More comprehensive information is available on the Israel Ministry of Finance website
QIZ Agreements
1998
Jordan
2004
Egypt
21
October 25th, 2015
Bilateral Investment Treaties
Albania
Cyprus
Hungary*
Argentina
Czech Republic
India
Armenia
El Salvador
Kazakhstan
Azerbaijan
Estonia
South Korea
Belarus
Ethiopia
Latvia
Bulgaria
Georgia
Lithuania
China
Germany
Macedonia
Croatia
Guatemala
Moldova
* Treaty terminated on June 26, 2007; existing investments are protected for ten years after termination
Comprehensive information is available on the Israel Ministry of Finance website
22
October 25th, 2015
Bilateral Investment Treaties
Slovenia
Montenegro
South Africa*
Myanmar*
Thailand
Poland
Turkey
Romania
Turkmenistan
Serbia
Ukraine
Slovakia
Uruguay
* Yet to be ratified
Comprehensive information is available on the Israel Ministry of Finance website
Uzbekistan
23
October 25th, 2015
Economic Organizations
Membership in main international economic organizations
Israel is a member of leading international economic organizations:
• United Nations Organizations
• United Nations Agencies
• World Bank Group
• International Monetary Fund
• OECD
• WTO
• Regional Organizations
• Inter-Governmental Organizations
• Pacific Alliance (observer)
More comprehensive information is available on the Israel Ministry of Finance website
24
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
25
October 25th, 2015
Unemployment and Participation
As % of total labor force
Source: CBS
26
October 25th, 2015
Unemployment Rate
Aged 15 and over, S.A, latest available monthly data
Source: OECD
27
October 25th, 2015
Job Creation
Change in the number of employees
Effects of the global
economic crisis
Annual average relative to previous year average.
Source: CBS
28
October 25th, 2015
Employment Rate
Aged 15 and over, S.A, 2015 Q3 or latest available quarterly data
Source: OECD
29
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
30
October 25th, 2015
General Government Expenditure
As % of GDP
Source: CBS
31
October 25th, 2015
General Government Tax Burden
As % of GDP
Source: CBS
32
October 25th, 2015
Central Budget Deficit
As % of GDP
Source: CBS, MoF
33
October 25th, 2015
Public Debt
As % of GDP
Effects of the global
economic crisis
Source: CBS, MoF
34
October 25th, 2015
Public Debt
As % of GDP, international comparison
Source: OECD
35
October 25th, 2015
Avoidance of Double Taxation
Austria
Denmark
India
Belarus
Estonia
Ireland
Belgium
Ethiopia
Italy
Brazil
Finland
Jamaica
Bulgaria
France
Japan
Canada
Georgia
Latvia
China
Germany
Lithuania
Croatia
Greece
Luxembourg
Czech Republic
Hungary
Malta
More comprehensive information is available on the Israel Ministry of Finance website
36
October 25th, 2015
Avoidance of Double Taxation
Mexico
Russia
Taiwan
Moldova
Singapore
Thailand
Netherlands
Slovak Republic
Turkey
Norway
Slovenia
UK
Panama
South Africa
Ukraine
Philippines
South Korea
USA
Poland
Spain
Uzbekistan
Portugal
Sweden
Vietnam
Romania
Switzerland
More comprehensive information is available on the Israel Ministry of Finance website
37
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
38
October 25th, 2015
Inflation Rate
Rate of change in Consumer Price Index
Source: CBS, Bank of Israel
39
October 25th, 2015
Interest Rate
Source: Bank of Israel
40
October 25th, 2015
Central Bank’s Interest Rates
International comparison, last available data
Source: Specified Countries’ Central Banks
41
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
42
October 25th, 2015
Industrial Production
Average annual growth - 2015 average relative to 2005 average
Total industrial production grew by 3.2%
Source: CBS
43
October 25th, 2015
Industrial Export
Current U.S. $ Billions, the share of high tech and mid high tech sectors in the Israeli goods exports
81.4%
80.1%
77.4%
76.6%
79.5%
80.5%
80.3%
80.9%
76.3%
75.3%
73.2%
75.4%
72.5%
* For the first eight months of 2015 annualized
Source: CBS
44
October 25th, 2015
Israel is a World Leader in
Science, Technology and Innovation
Bloomberg Global Innovation
Index, 2015 (R&D)
IMD, Business expenditure on
R&D, 2012
WEF, Capacity for innovation,
2013-2014
Source: Bloomberg. International Institute for Management Development (IMD) Global Competitiveness Yearbook 2014. World Economic
Forum (WEF) Global Competitiveness Report 2014-2015.
45
October 25th, 2015
Israel in IMD Rankings
IMD World Competitiveness Yearbook 2014
The Institute for Management Development ranked Israel 24th out of 60
countries for 2014.

1st in cyber security*

1st for innovative capacity

1st in business expenditure on R&D (%)

2nd in scientific research

2nd in public expenditure on education

2nd for entrepreneurship of managers is widespread in business

3rd in qualified engineers available in labor market

6th for Nobel Prizes per capita in the fields of physics,
chemistry, physiology, medicine and economics since 1950
Source: IMD World Competitiveness Yearbook 2014
46
October 25th, 2015
Israel in WEF Rankings
World Economic Forum Global Competitiveness Index 2013-2014
The World Economic Forum ranked Israel 27th out of 148 countries for 20142015 in terms of competitiveness.

3rd in Innovation

3rd in Quality of scientific research institutions

5th in Firm-level technology absorption

6th in Strength of investor protection

7th

8th in Nature of competitive advantage

9th in Venture Capital Availability
in Company spending on R&D
Source: World Economic Forum Global Competitiveness Index 2014-2015
Global Competitiveness Report 2014-2015
“The country’s main strengths remain its world-class
capacity for innovation (3rd), which rests on innovative
businesses that benefit from the presence of some of the
world’s best research institutions (3rd), support by the
government through public procurement policies (9th),
and a favorable financial environment for start-ups
(availability of venture capital is assessed at 9th place).”
47
October 25th, 2015
Cooperation in Industrial R&D
North America
New York
Massachusetts
Maryland
Virginia
Wisconsin
Colorado
Illinois
Oregon
BIRD (Foundation)
Ontario CIIRDF (Foundation)
Europe
France
Russia
Italy (and Trento county)
Germany
Greece
Czech Republic
Bulgaria
Lithuania
Slovenia
Denmark
Hungary
Turkey
South America Portugal
Finland
Argentina
Sweden
Uruguay
Ireland
Brazil
Spain
Cyprus
Netherlands
Asia
China (Shanghai, Jiangsu,
Shenzhen, Federal)
India
SIIRD-Singapore (Foundation)
KORIL-RDF-Korea (Foundation)
Australia
(Victoria)
* Through EUREKA (40 country Multilateral Initiative)
48
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
49
October 25th, 2015
Learn More
Visit the Israel Ministry of Finance English website
for more information:
About the Ministry
Economic Overview of Israel
Ministry of Finance publications and reports
Other publications and reports on the Israeli economy
Ministry press releases
50
October 25th, 2015
Learn More
Click to open:
Israel Central Bureau of Statistics
Bank of Israel
Ministry of Economy
Ministry of Foreign Affairs
Israel Government Portal
51
October 25th, 2015
Table of Contents
1
Main Indicators
2
Real Economy
3
Foreign Trade and Balance of Payments
4
Labor Market
5
Fiscal Stance
6
Price Stability and Monetary Policy
7
Innovative Economy
8
Learn More
9
Contact
52
October 25th, 2015
Contact
Mr. Oded Keneresh, CPA
Mr. Naor Porat
Dr. Amichai Fishler
Overseas Economic Information
Chief Economist Department
Ministry of Finance
State of Israel
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