1. May 2009 The Israeli economy

2. Starting Point

3. 5 Years of Rapid Economic Growth

4. A Continuous Decline in Unemployment Rate

5. Export Intensity Growth

6. A Rapid Growth in Israeli Industry

7. The High Tech Sector Contribution to Industrial Growth in 2004-2008

8. A Continues Surplus in The Current Account Balance Source: Bank of Israel

9. Corporate Tax Reduction

10. Towards 2009

12. World Leadership in Civilian R&D Investments Source: OECD, Israeli CBS

13. Quality of Scientific Research Institutions Source: The Global Competitiveness Report 2008-2009, World Economic Forum

14. Availability of Scientists and Engineers Source: The Global Competitiveness Report 2008-2009, World Economic Forum

16. Highly Educated Population Source: OECD, Israeli CBS ,2004

18. The Share of ICT Sector Out of The Business Sector GDP Information & Communications Technologies, 2006 Source: Israeli CBS

20. A Rise in Capital Adequacy Ratio in Most Israeli Banks Israeli 5 largest bank groups have relatively high Capital Adequacy Ratio, compared to the requirement set by Basel Committee on Banking Supervision (8%)

22. Household saving rates Per cent of disposable household income Source: Leumi Bank

24. 2006-2008: A Sharp Revaluation of the Shekel Since Oct. 2008 the Shekel depreciated by 20% against the Dollar

25. Revaluation Implications Survey Erosion of Competition Ability At the Time of the Survey: NIS/Dollar= 3.371 Source: Revaluation Survey, Manufacturers’ Association of Israel. July 2008.

27. High Labor Costs

29. 2008 - Relatively High Corporate Tax Source: KPMG, 2008

31. In the next 2 years- 52% will be off shoring Source: Off shoring Survey, Manufacturers’ Association of Israel. May 2008.

33. 60% of Israeli Export of Goods is Shifted to the US & the EU

34. 2009: A Sharp Decline in Developed Economies

35. 2009 Forecasts

36. 2009:A Decline in Israeli Economy

37. An Increase in Unemployment Rate

38. Thank you Manufacturers’ Association of Israel