Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
STATE OF ISRAEL MINISTRY OF FINANCE International Affairs Department Economic Highlights Presentation 3rd Quarter 2012 In any case of information derived from sources external to the Ministry of Finance, such sources are mentioned at the bottom of each item Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 2 Main Economic Indicators Economic Figures GDP and Business GDP Major GDP Components Exports of Goods and Services Main Trading Partners Gross Domestic Capital Formation Foreign Investments Unemployment and Participation Consumer Price Index Inflation Rate Israel’s Credit Ratings 3 Economic Figures Criteria 2011 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 GDP (constant prices, 2005, in $B PPP)* 207.6 52.2 52.6 53.0 53.3 53.8 Real GDP growth rate (% change) 4.6% 3.7% 3.1% 3.2% 3.1% 3.4% $30,975** 6,735$ 6,755$ 6,773$ 6,790$ 6,817$ 2.7% 2.0% 1.3% 1.1% 1.3% 1.8% GDP per capita, based on PPP (Current international $) GDP per capita growth rate (%, 2005 prices) Exports (goods & services), $B* (As % of GDP) Imports (goods & services), $B* (As % of GDP) Unemployment rate 91.0 22.9 23.0 22.2 22.2 23.2 43.3% 44.2% 42.7% 42.3% 42.2% 44.1% 92.2 23.3 23.4 23.3 24.7 23.5 42.4% 43.1% 42.3% 42.0% 45.3% 43.2% 7.1% 7.0% 7.0% 6.8% 6.9% 7.0% * Using a periodic average exchange rate. Additional Sources: IMF 4 Economic Figures Criteria 2006 2007 2008 2009 2010 2011 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% 5 GDP and Business GDP Annual rate of change, constant prices, 2005 6 Major GDP Components Annual rate of change, constant prices, 2005 Global economic crisis 7 Exports of Goods and Services US $ Billions, constant prices, 2005 Global economic crisis * Using a public exchange rate of 1USD=3.6NIS (2011 average) 8 Main Trading Partners US $ 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 9 Main Trading Partners US $ Billions Additional Sources: Central Bureau of Statistics 10 Gross Domestic Capital Formation As % of GDP 11 Foreign Investments US $ Billions * 2006 is exceptional due to a large acquisition by Teva Pharmaceutical Industries Ltd. 12 Unemployment and Participation As % of total labor force Since the 2nd quarter of 2009 unemployment is relatively decreasing, with a gradual increase in the participation rate since the beginning of 2010. 13 Consumer Price Index Past Thirteen monthly averages, 2010=100 Additional Sources: Central Bureau of Statistics 14 Inflation Rate Rate of change in consumer price index, yearly average 15 Israel’s Credit Ratings Updated to mid-September, 2012 Rating Firm Moody's Standard & Poor's Fitch Term Domestic Bonds Rating Long A1 Short - Long AA- Short A-1+ Long A+ Short - Forecast Stable Stable Stable Overseas Bonds Rating A1 P1 A+ A-1 A F1 16 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 17 Balances Gross Public Debt Budget Deficit General Government Expenditure Current Account Surplus Net Foreign Surplus Gross Tax Burden 18 Gross Public Debt As % of GDP Global economic crisis 19 Budget Deficit As % of GDP 20 Budget Deficit Target 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 the budget target. The proven effectiveness and functionality of the biennial budget system have led the government to adopt the biennial budget for a second period through 2011-2012. On June 2012 Israeli cabinet approved the proposal to institute a two-year budget on a regular basis 21 General Government Expenditure As % of GDP 22 Current Account Surplus As % of GDP 23 Net Foreign Surplus As % of GDP * Using a public exchange rate of 1USD=3.6NIS (2011 average) 24 Gross Tax Burden As % of GDP OECD countries average: 34.8% (2008 average) Additional Sources: OECD 25 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 26 International Comparisons GDP Growth Inflation Rates Israel on IMD Rankings Israel on WEF Rankings Interest Rates: Israel & the U.S. Stock Indices: NASDAQ & Tel-Aviv 100 27 GDP Growth Israel compared to advanced economies, annual rate of change, constant prices 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. Additional Sources: IMF 28 Inflation Rates Rate of change in consumer price index, yearly average (2011) The Israeli economy demonstrated high stability compared to other countries throughout the global economic crisis. Additional Sources: IMF 29 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 The Institute for Management Development ranked Israel 19th out of 59 countries for 2012. Additional Sources: IMD World Competitiveness Yearbook 2012 30 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 Resilience of the economy Additional Sources: IMD World Competitiveness Yearbook 2012 Entrepreneurship 31 Israel on IMD Rankings IMD World Competitiveness Yearbook 2012 Israel’s ranking compared to other IMD countries, Business Efficiency and Infrastructure Additional Sources: IMD World Competitiveness Yearbook 2012 Israel’s ranking compared to other IMD countries, Economic Performance and Government Efficiency 32 Israel on WEF Rankings World Economic Forum Global Competitiveness Index 2012-2013 The World Economic Forum ranked Israel 26th out of 144 countries for 2012-2013 in terms of competitiveness. The Forum also ranked Israel: 1st in Quality of scientific research institutions 3rd in Venture capital availability 4th in PCT patents, applications/million pop. 5th in Strength of investor protection 5th in Firm-level technology absorption 6th in Capacity for innovation 6th in Company spending on R&D And 8th in University-industry collaboration in R&D Additional Sources: World Economic Forum Global Competitiveness Index 2011-2012 33 Interest Rates: Israel & the U.S.* 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%. =0 34 Stock Indices: NASDAQ & Tel-Aviv 100 Tel Aviv 100 corresponds with the NASDAQ to current events, with relatively stable reactions. 35 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 36 Israel in the OECD Israel was invited as a full member of the OECD on May 10th, 2010 and officially joined in September 10, 2010. Expenditure on R&D Real GDP Growth GDP per Capita Unemployment 37 Expenditure on R&D As % of GDP, 2010 (latest available year) Israel is 1st in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity. Additional Sources: OECD 38 Real GDP Growth 2011, end of period Israel’s recent growth rate is higher than most OECD members Additional Sources: OECD 39 GDP per Capita U.S $ Billions , Current prices, PPP, 2011 (or most recent data) Additional Sources: OECD 40 Unemployment Rate For 2011 Additional Sources: OECD 41 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 42 International Agreements Israel’s Free Trade Agreements Avoidance of Double Taxation Cooperation in Industrial R&D Bilateral Investment Treaties Economic Organizations 43 Israel’s Free Trade Agreements QIZ Agreements 1985 USA 1992 EFTA 2004 Egypt 1997 Turkey 1998 Jordan 1997 Canada 1999 Mexico 2000 European Union (Association Agreement) 2007 MERCOSUR More extended information is available in the Israel Ministry of Finance website 44 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 More extended information is available in the Israel Ministry of Finance website 45 Avoidance of Double Taxation Taiwan Mexico Russia Moldova Singapore Netherlands Slovak Republic Norway Slovenia UK Philippines South Korea Ukraine South Africa USA Spain Uzbekistan Poland Portugal Romania Sweden Thailand Turkey Vietnam Switzerland 46 More extended information is available in the Israel Ministry of Finance website Cooperation in Industrial R&D North America New York Massachusetts Maryland Virginia Wisconsin Colorado Illinois Oregon BIRD (Foundation) Ontario CIIRDF (Foundation) South America Argentina Uruguay Brazil Europe France Russia Italy ( and Trento county) Asia Germany China (Shanghai, Jiangsu, Greece Shenzhen, Federal) Czech Republic India Bulgaria Lithuania Slovenia SIIRD-Singapore (Foundation) Denmark KORIL-RDF-Korea (Foundation) Hungary Turkey Portugal Finland Sweden Australia Ireland (Victoria) Spain Cyprus Netherlands * Through EUREKA (40 country Multilateral Initiative) More extended information is available in the Israel Ministry of Finance website 47 Bilateral Investment Treaties Albania Cyprus Hungary* Argentina Czech Republic India Armenia El Salvador Kazakhstan Azerbaijan Estonia Korea Belarus Ethiopia Latvia Bulgaria Georgia Lithuania China Germany Moldova Croatia* Guatemala Macedonia* *Extended information is available in the Israel Ministry of Finance website 48 Bilateral Investment Treaties Turkey Montenegro Poland Turkmenistan Ukraine* Romania Uruguay Serbia Uzbekistan Slovakia Slovenia* South Africa* Thailand *Extended information is available in the Israel Ministry of Finance website 49 Economic Organizations Membership 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 50 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 51 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 52 Learn More Click to open: Israel Central Bureau of Statistics Bank of Israel Ministry of Industry, Trade and Labor Ministry of Foreign Affairs Israel Government Portal 53 Table of Contents 1 Main Economic Indicators 2 Balances 3 International Comparisons 4 Israel in the OECD 5 International Agreements 6 Learn More 7 Contact 54 Contact Mr. Roni Hershkovitz Mr. Ori Kaufman Follow us on Twitter Overseas Economic Information International Affairs Department Ministry of Finance State of Israel Follow us on Linkedin Write us an Email Follow us on Flickr Visit our Website Follow us on YouTube Subscribe to our RSS Feeds Subscribe to our Newsletters 55