The Israeli Economy at a Glance 2009
Total Page:16
File Type:pdf, Size:1020Kb
Ministry of Industry Trade and Labor THE ISRAELI ECONOMY AT A GLANCE 2009 July 2009 DATA REFERS TO 2008 Minister of Industry, Trade and Labor. Dear Friends, The Israeli economy continued to grow at a relatively fast pace during the year 2008. In comparison with all developed economies Israel's growth was clearly among the fastest. Against the backdrop of the global financial crisis, much of the year witnessed further rises in industrial production as well as in foreign trade. The very nature of Israel's open economy and international trading activities in diversified fields, at once exposed Israel to the global crisis whilst allowing for adjustments and restructuring of the domestic economy. On the one hand the Israeli economy has been shifting from agricultural and traditional industrial manufacturing to more knowledge intensive industries and ICT trading and service provision. On the other hand, much of the traditional industries have been undergoing technological upgrading in a constant bid to remain competitive and innovative in the global market place. Success has largely been based on the one major comparative advantage of the Israeli economy – the availability of a large pool of highly skilled engineers and technicians. The continued policies of nurturing and encouraging young students to enter the science-based fields of engineering and software, coupled with the support granted to companies engaged in research and development have further enriched the stock of human capital. The Ministry of Industry Trade and Labor continues under the Netanyahu government, to encourage investment in the periphery as well as supporting widespread investment in research and development. Despite the current downturn in the global markets which adversely affected our economy in the first quarter of 2009, the outlook for the medium to long term is for strong economic recovery and growth. Regional trading with our immediate neighbors has increased and around the globe Free Trade Agreements with major trading blocs, as well as other international agreements, further enhanced Israel’s position to trading with a widening range of countries. With Israel working steadily towards full accession to the OECD we are confident that our economy will continue to provide unique investment opportunities to an increasing number of global partners. Sincerely, Binyamin Ben-Eliezer THE ISRAELI ECONOMY AT A GLANCE 2009 INTRODUCTION THE ISRAELI ECONOMY AT A GLANCE The Israeli Economy at a Glance, as the title suggests, provides the reader with an overall picture of the Israeli economy in graphic, tabular and textual form. The continued widespread demand for this publication has encouraged us to keep amendments to a minimum, aside from the annual statistical updates. Essentially the publication is divided into three main sections: The first section contains basic macro-economic data, foreign trade statistics and international comparisons portrayed in graphical form. The second section contains tables of data, particularly major economic and industrial indicators, enabling a quick look at recent trends and developments in the growth of the local Israeli economy. The third section of the publication reviews selected economic policy and industrial policy, enabling a brief understanding of macro-economic policy in general and the Ministry’s contribution in particular. Furthermore, the reader will find a comprehensive list of world-wide contacts appended to the main publication. Our internet website also provides a wide range of information including this publication and many others. Our main address, at which a full English text is available is: [email protected] The editor. 5 THE ISRAELI ECONOMY AT A GLANCE 2009 TABLE OF CONTENTS (2008) GRAPHS & CHARTS Facts & Figures 2008 9 Israel’s Exports of Goods, 2008 10 Israel’s Imports of Goods, 2008 11 Industrial Exports by Major Branches, 2008 12 Contribution of Specific Region to Export Growth 13 Composition of Industrial Exports 1995 vs. 2008 14 Breakdown of Import Increase by Region 15 Resources and Uses of Resources, 2008 16 Business Product Composition, 2008 17 Quarterly Employment & Unemployment since 2006 18 Production by Major Industrial Branches, 2008 19 Consumer Price Inflation Rates, 1998 – 2008 20 Industrial Production Comparison 2008 21 G.D.P. Per Capita, in P.P.P. Terms, 2008 22 Real G.D.P. Growth Comparison, 2008 23 Civillian R&D Expenditure as a % age GDP 2006 24 Hourly Compensation Cost in Manufacturing, 2007 25 Technology Indicators Comparison 26 Share of ICT Value Added 27 Share of ICT Jobs 28 TABLES Main Indicators, 2005 – 2008 30 Population Employment and Industrial Indicators 31 Imports of Goods 32 Exports of Goods 33 Service Sector Exports 34 Selected Industrial Policy Foreign Trade 35 Invest in Israel Center 39 Israel’s International Trade and Economic Agreements 40 Investment Incentives 41 Employment Grant Program 45 Research & Development Incentives 47 Industrial Cooperation Authority 52 Economic & Trade Representatives Abroad 54 7 THE ISRAELI ECONOMY AT A GLANCE 2009 ISRAEL FACTS & FIGURES 2008 Figures refer to millions of U.S. $ unless otherwise stated. Gross Domestic Product 198,997 Business Sector Product 147,200 GDP Per Capita (U.S.$) 27,224 Investment in Fixed Capital 35,920 Imports of Goods (Net) 64,531 Exports of Goods (Net) 51,321 Industrial Exports* 46,933 of which, hi-tech 17,150 Imports of Goods and Services** 84,192 Exports of Goods and Services** 80,427 Population Average (Thousands) 7,308 Unemployment Rate (%) 6.1 Inflation Rate (CPI-%) 3.8 * Including net polished diamonds ** Balance of payments figures. Source: Israel C.B.S 9 10 THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY ISRAEL`S EXPORTS OF GOODS, 2008 (MILLIONS OF U.S. $) TOTAL EXPORTS – 61,322* EFTA 1,298 CENTRAL & EASTERN E .U. 2.1% EUROPE 2,813 17,794 NORTH 4.6% 29.0% AMERICA** 21,203 34.6% ASIA*** 12,166 19.8% AFRICA LATIN AMERICA 1,468 1,989 2.4% OCEANIA 3.2% 787 1.3% 2009 Unclassified-$1,813 (3.0%) * Before reduction of returned goods ** 1. N.America including: U.S.A., Canada & Mexico 2.Export to U.S.A.- $19,973 (32.3%) ***Including Asian Republics of former U.S.S.R Source: C.B.S. THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY ISRAEL`S IMPORTS OF GOODS, 2008 (MILLIONS OF U.S. $) TOTAL IMPORTS – 65,173* EFTA 4,044 CENTRAL & EASTERN E .U. 6.2% EUROPE 3,104 22,513 NORTH 4.8% 34.5% AMERICA** 8,660 13.3% ASIA*** 13,713 21.0% AFRICA LATIN AMERICA 734 1,086 1.1% OCEANIA 1.7% 262 0.4% 2009 Unclassified-$11,057 (17.0%) * Before reduction of returned goods ** 1. N.America including: U.S.A., Canada & Mexico 2.Import from U.S.A.- $8,034 (12.3%) 11 ***Including Asian Republics of former U.S.S.R Source: C.B.S. 12 THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY INDUSTRIAL EXPORT BY MAJOR BRANCHES, 2008 Total Industrial Exports Exports Excluding Diamonds 46,933* Millions of U.S.$ 40,634* Millions of U.S.$ ELECTRICAL, FOOD & DRINK, 2% MINING & ELECTRONIC FOOD & DRINK, 2% MINING & MINERALS, 5% DIAMONDS, 13% &TRANSPORT, MINERALS, 6% 33% CHEMICALS & PLASTIC, 35% CHEMICALS & ELECTRICAL, METALS & OTHERS, 2% PLASTIC, 40% ELECTRONIC MACHINERY, 14% TEXTILES &TRANSPORT, TEXTILES CLOTHING & METALS & OTHERS, 2% 29% CLOTHING & LEATHER, 3% 2009 MACHINERY, 12% LEATHER, 2% *Including Net Polished Diamonds Source: Israel C.B.S THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY CONTRIBUTION OF SPECIFIC REGION TO EXPORT GROWTH 2008 Compared to 2000 Increment of $ 29,918 million Unclassified, Asia, 1% Central & Eastern 21% Western Europe, Europe, 5% 33% Oceania, 2% 2009 Africa, North America, 3% 30% Latin America, 4% 13 Source: Israel C.B.S 14 THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY COMPOSITION OF INDUSTRIAL EXPORTS 1995 VS. 2008 TOTAL INDUSTRIAL EXPORTS EXCLUDING DIAMONDS: IN 1995 -$ 12,302, IN 2008 $ 40,634 MILION 1 2 6 45,000 3 40,000 35,000 30,000 25,000 20,000 4 15,000 5 10,000 5,000 0 2008 1995 2008 2009 1- Office & computing equipment 1995 2008 1,019 HI-TECHNOLOGY INDUSTRIES 4,549 17,150 2- Electronic components 1,525 MID-HI-TECH INDUSTRIES 3,388 13,125 3- Aircraft industries 1,587 MID-LOW-TECH INDUSTRIES 2,542 8,081 4- Electronic communication equipment 3,830 TRADITIONAL (LOW-TECH) INDUSTRIES 1,823 2,278 5- Industrial medical & control equipment. 4,219 TOTAL INDUSTRY 12,302 40,634 6- Pharmaceutical products 4,970 Source: Israel C.B.S THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY BREAKDOWN OF IMPORT INCREASE BY REGION 2008 COMPARED TO 2000 INCREMENT OF: $ 29,426 million. % 35 30.9 30 28.9 24.8 25 20 15 10 5.6 5.5 5 2.6 1.2 0.4 0 2009 Western Asia Unclassified North America Central & Latin America Africa Oceania Europe Eastern Europe 15 Source: Israel C.B.S 16 THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY RESOURCES AND USE OF RESOURCES 2008 RESOURCES USE OF RESOURCES (282 BILLION U.S.$) (282 BILLION U.S.$) PUBLIC EXPORTS, IMPORTS, CONSUMPTION, 28% 30% 18% GROSS PRIVATE GROSS 2009 DOMESTIC CONSUMPTION, DOMESTIC PRODUCT,70% 41% INVESTMENT, 13% Source: Israel C.B.S THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY BUSINESS PRODUCT COMPOSITION 2008 Personal and other services Electricity & water Agriculture, 3.1% 2.6% forestry and fishing 2.4% Finance and business Manufacturing 37.0% 23.2% Construction 6.7% Transportation and 2009 Commerce, communications restaurants and hotels 14.7% 10.2% 17 Source: Israel C.B.S 18 THE ISRAELI ECONOMY AT A GLANCE A AT THE ISRAELIECONOMY QUARTERLY EMPLOYMENT & UNEMPLOYMENT4 ����� 1������ SINCE 2006 unemployment (rate) employment (thousands)