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Time is running in Israel’s favor

Time is running in Israel’s favor, in contrast with conventional wisdom, as evidenced by the “global economic walk” and irrespective of the “global political talk.” 

At the outset of the Jewish New Year, 5772, Israel’s Gross Domestic Product (GDP) is $240BN – with 3% deficit, 5.7% unemployment, 3% interest rate and 3% inflation – compared with $38BN GDP in 1990 and 1BN in 1949.  Israel’s credit rating has been recently upgraded by Standard & Poor, ranking it among the top OECD economies.

In 1948 Israel had no significant export, compared with $6.7BN current account (mostly trade balance) surplus in 2010, featuring the US, Europe and India as the chief trading partners. Notwithstanding disturbing Turkish statements, Israel-Turkey trade volume has surged 140% since the Islamic party, AKP, assumed power in 2002: $3.45BN in 2010 compared with $1.4BN in 2002. Irrespective of political tension, the first quarter of 2011 features a 40% increase in the mutually-beneficial Israel-Turkey trade over the first quarter of 2010.

In 2011, Israel takes pride in robust exports despite the global economic meltdown, due to its highly specialized lines of exports, which correspond to vital global needs in the areas of pharmaceuticals, medical devices, biomed, agriculture, water technologies, energy alternatives, software, laptop computers, telecommunications and defense industries.  The latter features Israel as the fifth largest global defense exporter. The NY-based “Trading Economics” reported a $1BN Israeli current account surplus in the first quarter of 2011.

Recently, the Houston-based Noble Energy discovered proven offshore natural gas reserves, which will transform Israel – by 2014 – from nearly total reliance on imported energy, to a major exporter of natural gas.

The Jewish New Year, 5772, highlights the Jewish State as “a shining high tech city upon a hill,” attracting leading global companies, venture capitalists and investment banks, which seek unique manpower and cutting-edge innovative technologies. The European Community appoints Israelis to head its high-technology commissions. Microsoft’s CEO, Steve Ballmer, calls Microsoft as much an Israeli company as an American company, because of the importance of its Israeli technologies, such as Kinect gaming motion-sensor interface, the fastest rising consumer electronic product in history. The same applies, increasingly, to Google, Cisco and eBay and Apple’s memory systems for its iPhones, iPods and iPads.  According to Intel’s CEO, Intel would have been devastated by the competition, if not for its four research and development centers and two manufacturing plants in Israel, which developed its most advanced microprocessors, Pentium, Sandbridge, Atom and Centrino.  Leading American venture capital funds, Sequoia, Greylock, Accel and Orbimed have become frequent investors in Israel, and some 400 global high tech companies have established research and manufacturing presence in Israel.  IBM and Computers Associates (CA) just made their ninth and tenth acquisitions of Israeli companies respectively. Overseas investments in Israel’s high-tech exceed any single European country and France and Germany combined.

The American defense industry has been a major beneficiary of Israel’s unique technological and battle capabilities.  Thus, the current generation of the F-16 features over 600 modifications, introduced by Israel, making it a global success and enhancing the American employment, research and development and export infrastructures. Northrop Grumman’s robotics division cooperation with – and sales to – Israel have dramatically upgraded the quality of its products, as has been the case with hundreds of US defense systems employed by Israel.

In retrospect, Arab wars and terrorism, geo-political constraints and limited natural resources have been nothing but bumps on the path of an unprecedented Israeli economic, technological, educational and defense surge, which has benefitted humanity at-large.

 

 

 

 

 

 

 

 




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The post-1967 turning point of US-Israel cooperation

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Israel’s Covid-19 Economic Trends

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4th quarter of 2020 and double the volume of the 1st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

  1. Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
  2. Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
  3. Israel is ranked 12th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
  4. The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
  5. Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
  6. In 2020, Israel was ranked 20th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
  7. Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
  8. Israel’s foreign exchange reserves-to-GDP ratio of 41% (3rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
  9. During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
  10. Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

 




Videos

The post-1967 turning point of US-Israel cooperation

Israeli benefits to the US taxpayer exceed US foreign aid to Israel

Iran - A Clear And Present Danger To The USA

Exposing the myth of the Arab demographic time bomb