מצגת כלכלת ישראל 2013

1. Israel Economy
The Israel Export & International
Cooperation Institute

2. Israel’s Economy
Rapid Development of Technology &
Hi-Tech Industries
Export Oriented Growth
Entrepreneurial Culture (Start Up Nation)
High Skilled Human Resources
Main Characteristics

3. 1985 2012
GDP per capita (us=100) 6,171 $ 31,480$
Inflation Rate (Year End) 470% 1.6%
Current Account Balance
(% of GDP)
-5.8% -1.1%
Budget Balance
(% of GDP)
-14.4% 4- %
Government Debt (% of GDP) 159.5% 73.4%
Israel Economy –
Past & Present

4. Source: EIU
Since 2003, government debt has been on a consistent downward trend,
only interrupted by the extraordinary circumstances surrounding the
2009 global economic crisis
Gross Public Debt
(as % of GDP)
40
50
60
70
80
90
100
110
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
United States*
Israel
United Kingdom
U.S
U.K
Israel

5. Macro Economic
indicators
Source: EIU, CBS, Bank of Israel
201220112010200920082007Criteria
242243218195202167GDP (B$ -at current market prices)
3.2%4.7%4.8%0.8%4.0%5.5%GDP Real Growth rate (%)
31,48030,16028,85027,71027,85026,660GDP per Capita (PPP, $)
919180688171Exports of Goods & Services (B$)
929276638474Imports of Goods & Services (B$)
6.9%6.7%6.6%7.5%6.1%7.3%Unemployment Rate (%)
1.6%2.2%2.7%3.9%3.8%3.4%Inflation Rate (Year End)

6. World GDP Growth
Forecast
1.3
-2.3
3.9
2.6
2.1 2.3
-0.3
-3.1
2.4
1.8
2.3 2.1
0.2
-4.3
1.9
1.5
-0.5
-0.2
0.1
-3.6
2.9
1.8
1.4 1.4
4
0.8
4.8 4.6
3.2 3.5
-6
-4
-2
0
2
4
6
2008 2009 2010 2011 2012 2013
world
US
Euro area
OECD
Israel

7. Real GDP Growth
4-year average, end of period
(2008-2011)
Source: Ministry of Finance
0.3
3.6
Israel’s 4-year average growth rate is higher then most OECD members.

8. Source: Ministry of Finance
Israel’s
Credit Ratings
Overseas Bonds
Forecast
Domestic Bonds
TermRating Firm
RatingRating
A1
Stable
A1Long
Moody's
P1-Short
A+
Stable
AA-Long
Standard & Poor's
A-1A-1+Short
A
Stable
A+Long
Fitch
F1-Short

9. 4.25%
2.33%
0%
1%
2%
3%
4%
5%
6%
Israel is 1st in the OECD in expenditure on R&D (research & development) as %
of GDP, demonstrating innovation, development and creativity.
Expenditure on
R&D
as % of GDP ,2010

10. Increased Multinational Presence in Israel
Seeking Technology Innovation and Development
Source: Giza Venture Capital

11. Acquisitions By Leading Global Companies
2002-2011, (M$)
Source: Giza Venture Capital

12. Multinationals - Success Stories
Source: Giza Venture Capital

13. Israel’s Start-ups
Source: Giza Venture Capital
1.7
5.4
2.7
3.7
9.3
454
606 622
477
0
100
200
300
400
500
600
700
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2002-2004 2005-2007 2008-2009 2010-2011 2012*
M&A's of Israeli High-Tech Companies (Year Av.)
New Startups Established
(B$)

14. Israel’s Start-ups
Source: Giza Venture Capital
2.1
1.1
1.9
2.8
10.1
3.3
2.7 2.6
2.2
5.1
9.3
0
2
4
6
8
10
12
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
M&A's of Israeli High-Tech Companies (Year Av.)
(B$)

15. Source: Giza Venture Capital

16. Source: Giza Venture Capital

17. * Forecast , including total exports of goods exports to the PA and ongoing projects
Exports of goods
and services
(1980-2012, in billions of $)
6
13
20
31 28 28 30
37 40 44
51
58
46
56
64 61
3
5
8
16
13 12
13
15
17
18
20
24
21
24
27 30
1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Services
Exports of goods and services used as major growth
engine in the economy - 30 years

18. North America
26%
Africa
3%
Latin America
5%
Asia and the Far East
21%
Europe
39%
B9.5$
B12$
B2.2$
B17.6$
B1.4$
Rest of World
6%
B3$
Despite the increased share of Asia and Latin America in recent years export
are still mainly directed to the U.S. and the EU
Distribution of exports by
regional trade (2012)
* Exports of goods excluding diamonds

19. Low Tech Industries
5%
Hi-Tech Industries
48%
Med-Hi Tech Industries
32%
Med-Low Tech Industries
16%
Source: Central Bureau of Statistics
21 B$
2.1 B$
7.1 B$
14 B$
The Industrial Export
by Sector
Export in 2012

20. In the past decade the industrial export was mainly affected by
the rapid growth of the Hi-Tech industry
Industry Export
Growth by sector
1995-2012
Source: Central Bureau of Statistics
B$
-
5,000
10,000
15,000
20,000
25,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
High - technology industries Medium - high technology industries
Medium - low technology industries Low - technology industries

21. 0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Office & computing equipment
Electronical components
Aircraft
Electronic communication
equipment
Equipment for control &
supervision
Pharmaceutical products
In the past decade the industrial export was mainly affected by
the rapid growth in equipment for control & supervision and
Pharmaceutical products
Growth of Main
Hi-tech sectors
1995-2012
Source: Central Bureau of Statistics
M$

22. Main Hi-tech
Services Sectors
2002-2012
Source: Central Bureau of Statistics, *IEICI 2012 Forecast
Billionsof$
2.4 2.9 3.2 3.4 4.0 4.5 4.9 4.8 5.0
6.8
7.6
0.8
1.3
1.6 1.6
2.2
2.5
3.4 4.2 3.5
3.1
4.8
0
2
4
6
8
10
12
14
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*
Computer Services R&D Services

23. Source: CBS & IEICI Calculations’
Main Hi-tech
Sectors
2012
3%
11%
5%
9%
15%
20%
14%
23%
Office & computing equipment
Electronical components
Aircraft
Electronic communication equipment
Equipment for control & supervision
Pharmaceutical products
Research and development
Computer and related services
Total High-tech Export of 2012: 33.5 B$
Goods: 63% Services: 37%

24. Source: CIA World Factbook
44.644.343.7
41.5
40.740.5
39.7
38.537.937.5
36.8
35.2
29.328.928.428.127.927.4
26.7
25.9
World Population
By median

25. QIZ Agreements
Egypt (2004)
Jordan (1998)
1985
1992
1997
1997
1999
2000
2007
USA
EFTA
Turkey
Canada
Mexico
European Union (Association Agreement)
MERCOSUR (Argentina not yet in force)
* Member states of the common market of the south, not yet in force
Israel’s FreeTrade
Agreements

26. Cooperation in Industrial
R&D Agreements
Source: Ministry of Finance
Austria
Belgium
Canada
China
Finland
France
Germany
Hong Kong
Sweden
United kingdom
U.S.A
India
Ireland
Italy
Korea
Netherlands
Portugal
Singapore
Spain
Victoria (Australia)
Czech Republic

27. 1
2
3
4
5
15
10
24
16
30
31
26
38
39
44
55
65
71
73
91
78
112
130
132
165
184
Singapore
Hong Kong
New Zealand
United States
Denmark
Ireland
Australia
Japan
Taiwan, China
Portugal
Netherlands
U.A.E
Israel
South Africa
Spain
Poland
Czech Republic
Turkey
Italy
China
Greece
Russia
Brazil
India
Iraq
Chad
Israel in Global
Perspective
Doing Business Index 2013 (World Bank)/185

28. Israel in Global
Perspective
The Global Competitiveness Index- WEF/144
The World Economic Forum ranked Israel 26th
out of 144 countries for 2012-2013
1
2
3
4
7
8
17
19
20
22
23
25
26
29
30
36
39
41
42
43
48
59
67
96
115
139
Switzerland
Singapore
Finland
Sweden
USA
UK
Belgium
Korea, Rep.
Australia
Luxembourg
New Zealand
Malaysia
Israel
China
Iceland
Spain
Czech Republic
Poland
Italy
Turkey
Brazil
India
Russia
Greece
Nigeria
Chad

29. The Global Competitiveness Index
Israel in Global
Perspective
Quality of scientific research institutions Venture capital availability
Strength of investor protectionPCT* patent applications
* PCT (Patent Cooperation Treaty)

30. Israel in Global
Perspective
The Global Competitiveness Index
Government procurement of advanced
technology products Capacity for innovation
University-industry collaboration in R&DFirm-level technology absorption

31. Small country,
great spirit!
 Israel has an entrepreneurial spirit
 Israel has the mentality of early adopters
 Israel has a creative fusion between academy and
business
 Israel has a defense technology
commercialization
 Israel has highly skilled workforce
 Israel has a powerfulVC community
 Israel has investment and R&D incentives
Israel's technology advantages: