Ministry of Economy Research & Economics Administrationemployment.molsa.gov.il/Research/Documents/The Israel Economy At a... · Research & Economics Administration ... UNEMPLOYMENT

Ministry of Economy Research & Economics Administration

* Data refers to 2015

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The Israeli Economy at a Glance

ISRAEL 2

295,993 Gross Domestic Product

219,073 Business Sector Product

35,334 GDP Per Capita (U.S.$)

54,794 Investment in Fixed Capital

61,302 Imports of Goods (Net)

53,427 Exports of Goods (Net)

50,173 Industrial Exports**

22,517 of which, hi-tech

83,727 Imports of Goods and Services***

92,238 Exports of Goods and Services***

8,511 Trade & Services Surplus

5.3 Unemployment Rate )%(

-1.0 Inflation Rate (CPI-%)****

Source: Israel C.B.S

FACTS & FIGURES 2015

Figures refer to millions of U.S. $ unless otherwise stated*

*Average Exchange rate of 2015= 3.8868 NIS to U.S. $.

** Including mining and quarrying and net polished diamonds

***Source: Balance of payments

****Dec. 2015 compared to Dec. 2014


ISRAEL`S EXPORTS OF GOODS, 2015 (MILLIONS OF U.S. $)

TOTAL EXPORTS – 63,955*

Unclassified-$3,681 (5.8%) * Gross figures before reduction of returned goods **1. N. America including: U.S.A., Canada & Mexico ***2. Latin America including: Central America

NORTH

AMERICA**

19,112

29.9%

EFTA

1,574

2.5%

LATIN AMERICA***

1,493

2.3%

AFRICA

1,045

1.6%

OCEANIA

582

0.9%

E.U.

16,084

25.1%

CENTRAL & EASTERN

EUROPE

2,650

4.1%

ASIA

17,734

27.7%


3


CONTRIBUTION OF SPECIFIC REGION TO EXPORT GROWTH


2015 COMPARED TO 2005 Increment of $ 21,186 Million

E.U. 18.0%

E.F.T.A 2.9%

Asia 47.4%

Oceania 1.0%

Other European countries

4.2%

South and Central America

1.8%

Unclassified 10.0%

Africa 1.3%

North America 13.8%

4


INDUSTRIAL EXPORTS* BY MAJOR BRANCHES, 2015

Total Industrial Exports

50,173 Millions of U.S.$**

Exports Excluding Diamonds

45,179 Millions of U.S.$

*Manufacturing including mining and quarrying

**Including net polished diamonds Source: Israel C.B.S

chemicals 18%

pharmaceuticals

15%

metal products, machinery & electrical equipment

17%

food, drink,

textiles and other

7%

rubber, plastic and

fuel 5%

computor, electronic

and optical, medical

equipment 31%

transport equipmt

7%

chemicals 16%

pharmaceuticals 14%

metals products, machinery & electrical equipment

15%

food ,drink, textiles and

other 6%

rubber, plastic and

fuel 5%

computor, electronic

and optical, medical

equipment 28%

diamonds 10%

5


COMPOSITION OF INDUSTRIAL EXPORTS 2015 VS. 2005

TOTAL INDUSTRIAL EXPORTS EXCLUDING DIAMONDS:

IN 2005-$ 25,673 , IN 2015-$ 44,914 MILLION


2015 2005

22,517 10,634 High- technology industries

13,868 8,755 Medium- high technology industries

5,521 3,664 Medium- low technology industries

3,008 2,620 Low- technology industries

0

10,000

20,000

30,000

40,000

50,000

2005 2015

Low Technology

Medium low

Medium high

High technology

6



COMPOSITION OF INDUSTRIAL EXPORTS* 2015 VS. 2005

TOTAL INDUSTRIAL EXPORTS EXCLUDING DIAMONDS:

IN 2004-$ 23,731 , IN 2014-$ 46,800 MILLION

Pharmaceutical products

30%

Manufacture of computers,

electronic and optical products

14%

Manufacture of air and

spacecraft and related

machinery 56%

*Hi- tech. exports by branches 2014, are according to the new ISIC classification

2015 2005

22,517 10,634 High- technology industries

7


ISRAEL`S IMPORTS OF GOODS, 2015

Unclassified-$6,645 (10.7%)

* Gross figures before reduction of returned goods

** 1. N. America including: U.S.A., Canada & Mexico

2. Latin America including Central America

(MILLIONS OF U.S. $)

TOTAL IMPORTS – 62,036*

NORTH

AMERICA**

8,455

13.6%

EFTA

4,575

7.4%

LATIN

AMERICA

754

1.2%

AFRICA

269

0.4% OCEANIA

177

0.3%

E.U.

22,574

36.4%

CENTRAL & EASTERN

EUROPE

3,323

5.4%

ASIA

15,264

24.6%


8


BREAKDOWN OF IMPORT INCREASE BY

REGION

2015 COMPARED TO 2005 INCREMENT OF $ 17,001 Million


European Union 30.2%

EFTA 11.9%

Other European Countries

4.2%

Asia 41.5%

North America 12.2%

Unclassified Countries

1.3%

9


RESOURCES AND USE OF RESOURCES 2015

RESOURCES

(375 BILLION U.S.$)

USE OF RESOURCES

(375 BILLION U.S. $)


private consumption

43.1% exports 24.3%

public consumption

17.4%

gross domestic

investment 15.2%

GDP 78%

imports 22%

10


BUSINESS PRODUCT COMPOSITION 2015


finance and business services

27%

manufacturing, mining and quarrying

19% trade, commerce and food services

14%

transport, storage,

information and communications

19%

construction 7%

personal and other services

9%

agriculture, foresty and

fishing 2%

electricity and water

3%

11


QUARTERLY EMPLOYMENT &

UNEMPLOYMENT SINCE 2013*


3.40

3.45

3.50

3.55

3.60

3.65

3.70

3.75

3.80

I II III IV I II III IV I II III IV

Employment, (Millions)

* Data is seasonally adjusted

6.6 6.7

6 5.8 5.8

6 6.2

5.6 5.4

5.1 5.3 5.3

0

1

2

3

4

5

6

7

8

I II III IV I II III IV I II III IV

Unemployment (%)

2013 2014 2015 2013 2014 2015

12


CONSUMER PRICE INFLATION RATES 2005 - 2015

ANNUAL PERCENTAGE CHANGE*

*Year end compared to previous year end Source: Israel C.B.S

Y E A R S

2.4

-0.1

3.4

3.8 3.9

2.7

2.2

1.6 1.8

-0.2 -1.0

-2

-1

0

1

2

3

4

5

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

13


G.D.P PER CAPITA, IN P.P.P** , 2015

U.S. DOLLARS

** Purchasing Power Parities including latest estimates

Source: IMF World Economic Outlook Database, October 2015

18

,33

5

20

,27

7

23

,56

4

25

,76

2

26

,07

4

27

,73

4

31

,47

9

33

,65

8

35

,27

0

36,5

28

38

,21

1

40

,95

8

45

,43

5

47

,03

3

55,9

04

0

10,000

20,000

30,000

40,000

50,000

60,000

Me

xic

o

Tu

rkey*

Ch

ile

Gre

ec

e

Hu

ng

ary

Po

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Cze

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re

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*

Isra

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Sp

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Ko

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Jap

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*

Un

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d K

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Germ

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Un

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d S

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15


Source: O.E.C.D.

* Estimates

REAL GDP GROWTH 2015

-0.1%

0.6% 0.8%

1.1%

1.5% 1.7% 1.8%

2.0%

2.4% 2.4% 2.5%

3.2%

5.6%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Fin

lan

d

Jap

an

Italy

Fra

nce

Germ

an

y

Po

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gal

Den

mark

To

tal

OE

CD

*

Un

ite

d S

tate

s*

Un

ite

d k

ing

do

m

Isra

el

Sp

ain

Irela

nd

16


UNEMPLOYMENT RATE (%)

Source: O.E.C.D. for Israel, C.B.S.

3.4 4.3 4.6

5.3 5.3 5.6 6.3 6.8 6.9

7.7

9.4 10.0 10

12.3 12.3

22.1

0

5

10

15

20

25J

ap

an

No

rwa

y

Ge

rma

ny

Isra

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Un

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d S

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Un

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d K

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De

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ark

To

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the

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Sw

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en

Ire

lan

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Fin

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nc

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Ita

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Po

rtu

ga

l

Sp

ain

17


HOURLY COMPENSATION COST IN

MANUFACTURING, 2012 IN U.S. DOLLARS

Source: U.S. Bureau of Labor Statistics

9.46

19.41 20.14 20.72

26.83

31.23 35.34 35.61

39.81

45.79

48.47

0

10

20

30

40

50

60T

aiw

an

Gre

ec

e

Isra

el

Ko

rea

Sp

ain

Un

ite

d K

ing

do

m

Jap

an

Un

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d S

tate

s

Fra

nce

Germ

an

y

Den

mark

18


R&D Expenditure As a Percentage of GDP 2014

Source: O.E.C.D

1.7%

2.3% 2.3%

2.8% 2.9% 2.9% 3.1% 3.2% 3.2%

3.8% 4.0% 4.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%U

.K.

Fra

nc

e

OE

CD

- to

tal

US

A

Sw

itzerl

an

d

Ge

rman

y

De

nm

ark

Sw

ed

en

Ja

pan

Fin

lan

d

Ko

rea

Isra

el

19


RELATIVE WORLD COMPETITIVENESS Overall ranking 2014

Source: IMD World Competitiveness Yearbook

2014

IMD ranks factors among 58 countries

0

20

40

60

80

100It

aly

Czec

h R

ep

ub

lic

Ch

ile

Fra

nc

e

Be

lgiu

m

Jap

an

Ko

rea

Fin

lan

d

Isra

el

Un

ite

d K

ing

do

m

Ire

lan

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De

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ark

Ge

rma

ny

No

rwa

y

US

A

9th 44th 22nd 24th 26th 28th 30th 35th 12th 17th 18th 19th 20th 1st 6th

20


RELATIVE WORLD COMPETITIVENESS By Factors, 2014

0

1

2

3

4

5

6

7

8

9

Ko

rea

Ita

ly

US

A

Sp

ain

Germ

an

y

Neth

erl

an

ds

Jap

an

Can

ad

a

Sw

ed

en

Fra

nce

Sin

gap

ore

Den

mark

Isra

el

Cyber Security

* The numbers on the left side of each graph refer to relative availability of skills as reported by survey IMD ranking on a scale of

1-10 Source: IMD World Competitiveness Yearbook 2014

21


0

1

2

3

4

5

6

7

8

9

Po

rtu

ga

l

Cze

ck R

ep

ub

lic

Sp

ain

Ko

rea

Ita

ly

Fra

nce

Ca

na

da

Jap

an

Sw

ed

en

De

nm

ark

US

A

Isra

el

Innovative Capacity

RELATIVE WORLD COMPETITIVENESS

* The numbers on the left side of each graph refer to relative availability of skills as reported by survey IMD ranking on a scale of

1-10

Source: IMD World Competitiveness Yearbook 2014

22


By Factors, 2014



0

1

2

3

4

5

6

7

8

9

Italy

Ho

ng

Ko

ng

Irela

nd

Can

ad

a

Fra

nce

Sin

gap

ore

Germ

an

y

US

A

Isra

el

Sw

itzerl

an

d

Scientific Research

0

1

2

3

4

5

6

7

8

9

Fra

nce

Ko

rea

Po

rtu

gal

Sw

ed

en

UK

Can

ad

a

US

A

Isra

el

Irela

nd

Flexibility and Adaptability

* The numbers on the left side of each graph refer to relative availability of skills as reported by survey IMD ranking on a

scale of 1-10

23


By Factors, 2014



0

2

4

6

8

Ita

ly

UK

Au

str

alia

Fra

nce

Ko

rea

De

nm

ark

Isra

el

Total R&D Personnel in Business Per Capita 2012

0%

20%

40%

60%

80%

US

A

Fra

nce

Ge

rma

ny

Ko

rea

Isra

el

Jap

an

Sin

gap

ore

Science Degrees 2011

0

2

4

6

8

Sp

ain

Ita

ly

U.K

.

Bra

zil

Den

ma

rk

US

A

Ge

rma

ny

Isra

el

Entrepreneurship

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

Ita

ly

Can

ad

a

Fra

nce

Ge

rma

ny

Jap

an

Ko

rea

Isra

el

Business Expenditure on R&D

* The numbers on the left side of each graph refer to relative availability of skills as reported by survey IMD ranking on a scale of 1-

10

24


By Factors, 2014



0123456789

Fin

lan

d

Isra

el

De

nm

ark

US

A

Jap

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UK

Ge

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Information Technology Skills

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Ge

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Ho

ng

Ko

ng

US

A

Sw

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en

Ire

lan

d

Isra

el

Fin

lan

d

Qualified Engineers

* The numbers on the left side of each graph refer to relative availability of skills as reported by survey IMD ranking on a

scale of 1-10

25


R&D PERSONELL RESEARCHERS PER 10,000 EMPLOYED PERSONS

Source: OECD S.T.I SCOREBOARD 2015

4.85

6.74 7.33 7.53 7.77 8.52 8.66 8.74

9.81 10.18

12.84

14.86 15.68

17.44

0

2

4

6

8

10

12

14

16

18

20IT

AL

Y

CZ

EC

H R

EP

UB

LIC

SP

AIN

SW

ITZ

ER

LA

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OE

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FR

AN

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JA

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N

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FIN

LA

ND

ISR

AE

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26


Main Indicators 2011-2015

Source: C.B.S., Ministry of Economy

Real annual percentage change Annual

average 2011 2012 2013 2014 2015

Gross Domestic Product 5.0 2.9 3.3 2.6 2.5 3.3

Business Sector Product 5.8 2.6 3.4 2.3 2.3 3.3

GDP per capita 3.1 1.0 1.3 0.6 0.5 1.3

Fixed Capital Investment 15.6 6.3 1.7 1.0 1.2 5.2

Buildings and other

construction works 11.0 8.6 7.5 -4.3 1.5 4.9

28


2010 2011 2012 2013 2014 2015

Average Population

(thousands) 7,622 7,763 7,910 8,060 8,212 8,377

Percentage change in average

population 1.9 1.8 1.8 1.8 1.9 2.0

Immigration (thousands) 16.6 16.9 16.6 16.8 24

Employed Persons

(thousands) 2,938 3,025 3,359 3,449 3,522 3,644

Unemployed Persons

(thousands) 209 180 247 228 222 202

Unemployment Rate )%( 6.6 5.6 6.9 6.2 5.9 5.3


Population, Immigration and Employment

29


All figures refer to total industry excluding diamonds. Source: C.B.S., Ministry of Economy

2015 2014 2013 2012 2011 2010 2009

2.0 1.1 1.1- 4.7 2.2 7.9 6.0- Production

1.9 9.1 3.2 4.6- 0.8- 12.7 8.3- Export

-0.2 0.1 0.3 0.7 1.7 1.6 4.8- Employment

2.2 1.0 0.7- 3.9 0.3 6.1 1.3- Productivity

2.6 0.1 24.5- 7.7- 53.4 7.6 26.2-

Gross

Investment

Main Industrial Indicators Real Annual Percentage Change

30



2009 2010 2011 2012 2013 2014 2015

Consumer goods 7,600 8,690 10,040 10,539 11,506 12,545 11,952

of which, durable 3,103 3,563 4,085 4,384 4,871 5,384 5,020

Production inputs 31,921 41,629 50,990 52,073 50,931 50,032 41,126

Investment goods 7,789 8,799 12,416 10,449 9,493 9,661 8,902

of which, machinery

& equipment 5,279 5,683 8,983 6,903 5,725 5,890 5,842

Total Imports 47,310 59,118 73,536 72,270 72,000 72,310 62,036

Imports of Goods (gross) By Major Category

Millions of U.S. $ (Current Prices)

31


2009 2010 2011 2012 2013 2014 2015

Agricultural export 1,230 1,327 1,381 1,373 1,495 1,368 1,168

1. Citrus 139 167 155 189 189 194 181

2. Flowers 146 103 106 128 126 108 88

Industrial export 44,399 53,640 62,441 58,656 61,773 64,172 60,292

1. Polished

Diamonds 9,431 12,962 16,689 14,393 15,713 17,090 15,113

2. Industrial export

excluding diamonds 34,968 40,678 45,752 44,263 46,060 47,082 45,179

Of which hi-tech 17,920 20,128 21,517 19,723 20,121 19,947 22,517

Other exports 2,307 3,464 3,980 3,200 3,700 3,455 2,495

Total Export 47,936 58,431 67,802 63,145 66,788 68,995 63,955

Source: Israel C.B.S, Foreign Trade.

Export of Goods (gross) Millions of U.S. $ (Current Prices)

32


Service Sector Exports Millions of U.S.$ (Current Prices)

2009 2010 2011 2012 2013 2014 2015

Travel & Tourist Services 4,444 5,106 5,305 5,446 5,666 5,695 5,366

Transportation Services 3,167 4,254 4,475 4,582 4,538 4,360 4,161

Other Business Services 15,075 15,209 17,539 22,828 24,229 25,275 24,890

Of which: Computer

Software

4,821 5,528 6,886 8,269 8,528 10,205 10,496

Research & Development 4,243 3,529 3,346 5,485 5,646 4,317 3,833

Total Services 21,983 25,373 27,386 32,909 34,484 35,376 34,473

Source: Israel C.B.S, Balance of Payments.

33