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Wall Street is more important than Gaza Strip

1.  Wall Street Is More Important Than Gaza Strip. The Tel Aviv Stock Exchange is higher today than it was upon the launching of the Gaza War. It is substantially higher than the ebb of November.  Once again, Israel’s economy is impacted by economic fundamentals (budget deficit, interest and inflation rates, debt to GDP ratio, trade balance, overseas investments, etc.) and by Wall Street much more than by Palestinian terrorism and other “bumps” on the path to economic growth, such as the 1948/9 War of Independence, 1956 Sinai War, 1967 Six Days War, 1969/70 War of Attrition, 1973 Yom Kippur War, 1982 War in Lebanon, 1990/1991 First Gulf War, 1993-2009 Palestinian terrorism. In each such case (“bump”), a very short-term decline was succeeded by an impressive economic growth.

2.  Vector Capital, the US private equity fund, has acquired Israel’s Aladdin for $160MN (Globes, Jan. 13, 2009). 

3.  Microsoft led a $24MN round of private placement by Israel’s N-Trig (Globes, Jan. 13). 

4.  25% of investments made – in the Europe/Israel region – by the $6BN London/Silicon Valley-based Accel Partners target Israeli companies. $1BN was raised by Accel during recent weeks, of which $525MN are dedicated to Europe and Israel. Since 2002, Accel has invested in 19 Israeli companies (Globes, Jan. 2). 

5.  Joseph Wolf, Head of Research Division at Barclays, Israel:  Since the eruption of the Gaza War, the Tel Aviv Stock Exchange has risen faster than Wall Street… The February 2009 election in Israel will not have an impact on the Israeli market.  We trust that the Gaza War shall not have a long-term effect either… Israel’s economy performs better – than other emerging markets – during economic slowdown… Irrespective of the security and political clouds, a foreign investor should consider positively investments in Israel” (Globes, Jan. 14).  

 




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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

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Exposing the myth of the Arab demographic time bomb