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Video #26:Israel’s economy an island of stability

 Video#26: http://bit.ly/2gpPUcb; entire video-seminar: http://bit.ly/1ze66dS


1. 86 Israeli companies are traded on NASDAQ, the third country following the USA and China.


2.  According to the
World Bank, Israel’s Gross Domestic Product (GDP) surged from $3BN in 1960 and $132BN in 2000 to $296BN in 2015, and Israel’s GDP per capita almost tripled from $13,500 to $35,500.  During the 2009-2015 global economic crisis, Israel experienced a 42% surge of GDP – without a stimulus package – compared to the Euro Bloc’s decline of 10.5% and the OECD’s 9.5% increase.

3.  Israel’s
government debt/GDP ratio – the Achilles’ heel of most countries – has been reduced from 100% in 2002 to 63.9% in 2016, compared with the Euro Bloc’s 90.7% and the OECD’s 94%.  

4. Israel’s foreign exchange reserves – which are critical to sustaining global confidence in Israel’s economy and Israel’s capabilities during emergencies – soared from $25BN in 2004 to $90BN in 2016.
The Global Finance Magazine ranks Israel’s Central Bank among the top nine central banks in the world.

5. In 2016, the three leading global credit rating companies express confidence in the long-term viability of Israel’s economy. Standard & Poor sustained an A+ rating with stable outlook, Fitch upgraded Israel’s credit rating outlook to “positive,” while retaining its’ A rating, and Moody’s sustained an A1 rating with stable outlook.

6.  The International Monetary Fund’s latest report on Israel (September, 2015) “welcomes Israel’s strong economic performance and the favorable near-term outlook.”

7. From the 450% galloping inflation of 1984, Israel manages to hold inflation in check – around zero, while the budget deficit and unemployment are 2% (of GDP) and 5% respectively, significantly lower than the OECD average of 7% and 8%.  Israel’s labor-force participation rate is expanding (77%).


8. Israel’s economy has expanded by 180% over the past 20 years, while the population (8.4mn) has grown by 45%.


9. According to the British Economist Intelligence Unit (June 2, 2016): “Israel is bucking the global trend…. [Global] fundraising by start-ups was down by more than one third in the first quarter of 2016 from its peak in the third quarter of 2015…. However, fundraising by Israeli startups increased in the final quarter of 2015… [it is] on track to meet, or exceed, its first-quarter-2016 total of $1BN, in the second quarter of 2016…. One reason is the flow of Chinese capital into Israel, most of which is aimed at longer-term investment as a means of gaining access to Israeli technology….”   

10.  The Shanghai Jiaotong University’s Academic Ranking of World Universities  – one of 3 most influential rankings – includes two Israeli universities among the
top twenty computer science universities in the world: sixteen from the US, two from Israel, one each from Canada and Switzerland.  

The Swiss-based World Economic Forum claims that Israel dedicates 4.21% of its GDP to research and development, the


highest proportion in the world, ahead of South Korea (4.15%), Japan (3.49%), Finland (3.32%), Sweden (3.3%), Taiwan (3.12%), Germany (2.94%), the US (2.81%) and the OECD (2.4%). 


12.  In the face of scarce resources and unique military and economic challenges, Israel is a global leader in innovation, including engineering-manpower per capita: 140 Israelis per 10,000, ahead of the USA with 85 per 10,000. Both are ahead of the rest of the world. The USA and Israel are global co-leaders in the areas of research, development, manufacturing and launching of mini, small and medium-size space satellites, the two of only 8 countries launching space satellites.

13. Israel’s demography bodes well for the future of its economy and national security.  Israel’s population is the youngest in the OECD – median age 31 (OECD – 42), featuring the highest fertility rate (over 3 births per woman), including an unprecedented surge in secular fertility.

14. In hindsight, the scarcity of resources, and the ongoing wars and terrorism, have been just bumps on the road to unprecedented economic and technological growth.


15.  The next video will highlight Israel’s unprecedented integration into the global economy


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

Israel’s Covid-19 Economic Trends

Straight from the Jerusalem Boardroom #248

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.



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