The Israeli Economy: Prospects and Challenges Prof. Avi Simhon, - - PowerPoint PPT Presentation

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Dec 05, 2023 357 likes •568 views

Prime Ministers Office The Israeli Economy: Prospects and Challenges Prof. Avi Simhon, Head of the National Economic Council February 2017 Israels GDP per capita is below OECD average 10,000 20,000 30,000 40,000 50,000 60,000

SLIDE 1

The Israeli Economy: Prospects and Challenges

February 2017

Prof. Avi Simhon, Head of the National Economic Council

Prime Minister’s Office

SLIDE 2

Israel’s GDP per capita is below OECD average

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Mexico Turkey Chile Latvia Greece Hungary Poland Estonia Portugal Slovak … Slovenia Czech Republic Korea Spain Israel Italy New Zealand Japan OECD - Total France United … Finland Canada Belgium Australia Iceland Sweden Germany Denmark Austria Netherlands United States Norway Switzerland Ireland Luxembourg

102,200

Source: OECD

SLIDE 3

While inequality is relatively high

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

Iceland Norway Denmark Slovenia Czech Republic Finland Belgium Slovak Republic Austria Netherlands Luxembourg Sweden Germany France Switzerland Poland Korea Ireland Canada Italy Portugal Greece Spain Latvia United Kingdom Israel Estonia Turkey United States Chile

Gini Index for Inequality in OECD Countries (2013)

Source: OECD

SLIDE 4

A persistent gap in GDP per capita since 2000

18,800

Israel

35,800 19,200

OECD

40,000

1994 1997 2000 2003 2006 2009 2012 2015

GDP per Capita, Current PPP

Source :OECD

SLIDE 5

Israel’s Debt-to-GDP Ratio Keeps Declining

130% 96% 93% 88% Israel 62.1%

57% 73% 67% 78% OECD 111% 117%

1990 1993 1996 1999 2002 2005 2008 2011 2014 2017 F

General Government Gross Debt-to-GDP Ratio

Source: OECD

SLIDE 6

The Government Becomes Less Involved in the Economy

51.2%

Israel

42.6% 40.2% 39.0% OECD 44.4% 39.26% 39.73%

41.1% 40.1%

2002 2004 2006 2008 2010 2012 2014 2016 E 2018 F Government Expenditure as % of GDP

Source: OECD

SLIDE 7

8% 13% 9% 4.788

1995 1999 2003 2007 2011 2015

Unemployment in Israel is at All-Time Low

Source: OECD

SLIDE 8

10 20 30 40 50 60 70 80 90 2005 2010 2015

Israeli Exports* By Technology Intensity, Current US $ (Billions)

Other Services ICT and R&D Services High Tech Industry Medium High-Tech Medium Low Tech Low Tech Industry

Elite Technology Share in Israeli Export is Growing

*Excluding Diamonds and Agriculture

Source: Israeli Central Bureau of Statistics

SLIDE 9

The Israeli Economy Had Undergone Major Shifts During Recent Decades

+ 4.2%

0% 2% 4% 6% 1995 1998 2001 2004 2007 2010 2013 2016 Current Account Balance (% GDP) 9

Source: Israeli Central Bureau of Statistics

SLIDE 10

In Recent Decades Israeli Economy Has Become More Integrated

0% 2% 4% 6% 8% 10% 12%

Foreign Direct Investment (% of GDP)

Net Inflows to Israel Net Outflows From Israel

Source: World Bank

SLIDE 11

The Economy’s Net Assets ($ Millions)

51247.3

95624.24

60,000
40,000
20,000

20,000 40,000 60,000 80,000 100,000 120,000 11 Following the structural changes – the Israeli economy is rapidly accumulating foreign assets

Source: Israeli Central Bureau of Statistics

SLIDE 12

Israeli High Tech as an Engine for Growth

SLIDE 13

2.25% 4.2% 4.3%

2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

1991 1995 1999 2003 2007 2011 2015

Big Leap in R&D Expenditure in the 90s (% of GDP)

Source: OECD

SLIDE 14

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0%

Greece New Zealand Spain Portugal Italy Ireland United Kingdom Norway Iceland Netherlands Czech Republic Australia France United States Belgium Germany Switzerland Sweden Denmark Austria Finland Japan South Korea Israel

Expenditure on Civilian R&D as % of GDP, 2014

Israeli Expenditure on R&D is Highest Among OECD Countries

Source: OECD

SLIDE 15

14 8 Israel OECD Average Researchers in the R&D sector, per thousand employees, 2012

The Key to Israel’s Success is its Human Capital

Source: OECD

SLIDE 16

Attracting Over 300 Multinational R&D Centers

SLIDE 17

Many of Which are the Biggest Outside the U.S

Source: Innovation Authority

SLIDE 18

Israel is Hosting a Startup Friendly Ecosystem

1. Silicon Valley
2. New York
3. Los Angeles
4. Boston
5. Tel Aviv
6. London
7. Chicago
8. Seattle
9. Berlin
10. Singapore
11. Paris
12. Sao Paulo
13. Moscow
14. Austin
15. Bangalore

Global startup Ecosystem ranking (2015):

Source: Compass.co

SLIDE 19

10 102 168 250 1 … 1 … 1 … 1 … 1 … 2 … 2 … 2 … 2 … 2 … 2 … 2 … 2 …

Number of Active Cyber Companies Active in Israel

Israel is Becoming a Major .. In Cyber Industry

Generating 5% of

Worldwide Revenues

Attracting 10% of

Worldwide Investments

Source: The National Cyber Bureau

SLIDE 20

The Israeli Economy: Prospects and Challenges

Israel’s GDP per capita is below OECD average

While inequality is relatively high

A persistent gap in GDP per capita since 2000

Israel’s Debt-to-GDP Ratio Keeps Declining

The Government Becomes Less Involved in the Economy

Unemployment in Israel is at All-Time Low

Elite Technology Share in Israeli Export is Growing

In Recent Decades Israeli Economy Has Become More Integrated

The Economy’s Net Assets ($ Millions)

Israeli High Tech as an Engine for Growth

Big Leap in R&D Expenditure in the 90s (% of GDP)

Israeli Expenditure on R&D is Highest Among OECD Countries

The Key to Israel’s Success is its Human Capital

Attracting Over 300 Multinational R&D Centers

Many of Which are the Biggest Outside the U.S

Israel is Hosting a Startup Friendly Ecosystem

Israel is Becoming a Major .. In Cyber Industry

Thank You