The Israeli Economy

1
The Israeli Economy
Ministry of Finance International Department

2
Introduction

• GDP in 2000 110.12 billion
• Population 6 million
• GDP per capita (2001) 17,500
• Rating Moodys A2
• SP A-
• Economy Market based,
  knowledge
  oriented

3
GDP Per Capita matches
OECD levels
GDP Per Capita, 1999, USD
16,500
Source OECD in Figures, 2000, Central Bureau of
Statistics
4
Government intervention in the economy is on the
decrease
State Budget as percentage of GDP
Source Ministry of Finance
5
Government expenditure matches European level
Government Expenditure as percentage of GDP, 1996
Source OECD, Ministry of Finance
6
The Tax Burden
Total tax receipts as percentage of GDP, 1997
39.7
Source OECD, Bank of Israel
7
Decreasing deficit
The budget deficit as percentage of GDP
Source Central Bureau of Statistics
8
Public Debt is on the decrease
Public Debt as Percentage of GDP
Estimate
SourceMinistry of Finance
9
Inflation hits record low
Annual Inflation Rate
Source Bank of Israel
10
Inflation matches EU standards
Inflation rate, 1999
1.3
Source OECD in Figures, 2000, Bank of Israel
11
Israels interest rate still remains high
Interest Rate, December 1999
Source OECD, Bank of Israel
12
FDI increased substantially
Foreign Direct Investment, million
Source Bank of Israel
13
FDI in relation to economic size
Foreign Direct Investment as of GDP, 1998
4.23
Source OECD, Central Bureau of Statistics
14
Privatization efforts continue
Privatization in 1998, million
1,659.5
Source OECD and the Ministry of Finance
15
Israels Trade Policy is Trade Liberalization
Free Trade Agreements with Europe and America
16
Diversified trade partners
Israels foreign trade (excl. diamonds), 2000,
million
Source Central Bureau of Statistics
17
Knowledge Industries are boosting
Manufacturing Exports, change 1999/2000
Source Central Bureau of Statistics
18
Remarkable structural changes
The change in industrial production, 1995
compared to 2000
Source Central Bureau of Statistics
19
Advanced export structure
Exports of Commodities, by group, 2000 (excl.
ships, aircraft diamonds)
Total export 21,459.5 million
Source Central Bureau of Statistics
20
Israels import structure
Imports of commodities, by groups, 2000 (Exc.
Ships, aircraft, diamonds and fuel)
Total imports 25125.2 million
Source Central Bureau of Statistics
21
Unemployment still remains high
Unemployment rate
Estimate
Source Central Bureau of Statistics
22
Unemployment-international comparison
Unemployment rate, 1999
Source Central Bureau of Statistics
23
Social and economic gaps
Income distribution among household-deciles
(employees), 1999
Gini Index 0.379
Source Central Bureau of Statistics
24
Knowledge based economy
National Expenditure on Civilian RD, 1997
2.9
Source Central Bureau of Statistics
25
Investment in human capital - key for the future
General Government Expenditure on Education, as
percentage of GDP
7
Source Central Bureau of Statistics