ECONOMIC HIGHLIGHTSECONOMIC HIGHLIGHTS11stst QUARTER 2008 QUARTER 2008

STATE OF ISRAELSTATE OF ISRAELMINISTRY OF FINANCEMINISTRY OF FINANCE

INTERNATIONAL AFFAIRS DEPARTMENTINTERNATIONAL AFFAIRS DEPARTMENT

April 2008April 2008 International Affairs Department HomepageInternational Affairs Department Homepage

ContentsContents

Note:

You can return to the beginning of each chapter by clicking the Israeli state symbol on the top right.

Economic FiguresEconomic Figures

BalancesBalances

International Comparisons, International Comparisons, additional data and industryadditional data and industry

Israel and the OECDIsrael and the OECD

International TreatiesInternational Treaties

Relevant SitesRelevant Sites

Main CharacteristicsMain Characteristics

Israel’s Economy:Israel’s Economy:

• Stable Growth due to a variety of factors, such as Stable Growth due to a variety of factors, such as private consumption, export and investment.private consumption, export and investment.

• Rapid Development of Technology & Rapid Development of Technology &

High-Tech Industries.High-Tech Industries.

• Entrepreneurial Culture. Entrepreneurial Culture.

• Supportive Environment for Businesses.Supportive Environment for Businesses.

• Investment and R&D Incentives.Investment and R&D Incentives.

Main CharacteristicsMain Characteristics

Economic Figures

GDP and GDP per Capita

Major GDP Components

Growth: Israel compared to the World

Exports of Goods and Services

Exports of Goods by Region

Imports of Goods and Services

Imports of goods by Region

Foreign Investments

Unemployment & Participation Rates

Newly Employed Persons

Inflation Rate

Estimates for 2008

Press for desired slide or continue:

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Main Indicators and Forecast5-6

7

8

9

10

11

12

13

15

16

17

18

20

Main Trading Partners14

Inflation Rate Worldwide19

* Using the estimate NIS made by the Ministry of Finance, Multiplied by Bank of Israel’s average US$-NIS exchange rate for 2007.

Main Economic Indicators and Forecast

Criteria20032004200520062007

GDP (current prices in B$)*115.8123.6131.2142.0161.8

GDP Real Growth Rate (%)2.3%5.2.%5.3%5.2%5.3%

GDP per Capita by PPP,

OECD calculation$22,429$22,812$24,271$25,762

GDP per Capita Growth Rate

(%, Current prices)0.4%3.4%3.5%3.4%3.4%

Exports (Goods & Services)** B$*

(As Percentage of GDP)

43.5

(37.6%)

52.6

(42.6%)

57.6

(43.9%)

62.9

(44.3%)

71.3

(44%)

Imports (Goods & Services)** B$*

(As Percentage of GDP)43.9

(38.3%)52.3

(42.3%)57.5

(43.9%)61.7

(43.5%)73.7

(45.5%)

Unemployment Rate (%)10.7%10.4%9.0%8.4%7.3%

** In current prices

5

Criteria20032004200520062007Total Gross Debt (Percentage of GDP)101.7%99.9%95.9%87.7%80.8%Gross External Debt* (B NIS)

As Percentage of GDP 60.6

11.5%62.2

11.2%58.1

9.7%59.89.4%

55.68.4%

As Percentage of Total Debt 11.2%11.1%10.8%10.7%10.3%Government Expenditure

(Percentage of GDP)51.2%48.1%46.3%45.6%45.1%

Current Account (% of GDP)1.2%2.4%3.3%5.6%3.3%Inflation Rate ( CPI, end of year)-1.9%1.2%2.4%-0.1%3.4%Credit Rating

( Long-term Foreign Bonds )Moody’s: A2

(Positive)S&P: A

(Positive)Fitch: A(Stable)

About Credit Rating: The government’s credit rating affects banks, companies and financial bodies in the market. The rating creates a “ceiling” which acts as a reference to their bond pricing. Credit rating indicates the macro-economic status of an economy and affects foreign investors’ decisions whether to invest in the market.

Recently Fitch Ratings have raised Israel’s foreign currency credit rating from ‘A-’ to ‘A’ and local currency credit rating from ‘A’ to ‘A+’ (Both: Stable).

Sources: Ministry of Finance, Central Bureau of Statistics * Debt by Israelis to factors abroad

Main Economic Indicators and Forecast (con.)

6

Source: Central Bureau of Statistics, Ministry of Finance

8.0

4.6

-0.9

-2.9

-0.6

-2.6

2.3

0.4

5.2

3.4

5.3

3.5

5.2

3.4

5.3

3.4

-5.0

-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

2000 2001 2002 2003 2004 2005 2006 2007

GDP GDP per Capita

GDP and GDP per Capita (Annual rate of change (%), in Constant Prices)

Growth forecasts for 2008 suggest Israel has yet to Growth forecasts for 2008 suggest Israel has yet to achieve its full potentialachieve its full potential

7

GDP GrowthIsrael compared to the World

(Annual rate of change (%), in constant prices)

1.6%

-0.6%

1.9%

-0.9%

2.7%2.3%

4.1%

5.2%

3.5%

5.3%

4.1%

5.2%

3.5%

5.3%

3.5%

4.2%

3.4%

4.0%

3.3%

4.1%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

World Growth Israel Growth

Source: Ministry of Finance, Israel Export Institution

Projection for 2008: Ministry of Finance; for 2008-10: Israel Export Institute

Though affected by worldwide demand, Israel’s growth remains solidThough affected by worldwide demand, Israel’s growth remains solid

8

0.8

5.0

-6.5

-2

1.2

-2.3

-5.6

8

5.6

-2.5

-0.4

18.1

42.9

2.34.3

4.5

2.3

10.1

5.9

6.62.6

14.2

8.4

-8

-3

2

7

12

17

2002 2003 2004 2005 2006 2007Private Consumption Government Consumption

Investment in Fixed Assets Exports of Goods and Services

Major GDP Components(Annual rate of change (%), in constant prices)

Source: Central Bureau of Statistics, Ministry of Finance 9

The trend of buying Israeli start-up companies has continued throughout 2007The trend of buying Israeli start-up companies has continued throughout 2007

Source: Central Bureau of Statistics

Exports of Goods and Services(B$)

27.5

11.9

30.2

13.4

36.6

16

40.1

17.5

43.7

19.2

50.1

21.1

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007

Goods Services

Exports continue to rise even though the exchange rate is depreciating.Exports continue to rise even though the exchange rate is depreciating.

10

Exports of Goods by Region(Excluding diamonds)

Source: Central Bureau of Statistics, Bank of Israel, Ministry of Finance Rest of Europe Includes E. . F . T . A .

2006 2007

EU positions itself as a major trade partner with Israel in 2007EU positions itself as a major trade partner with Israel in 2007

North America30.5%

Asia15%

EU34.5%

Rest of Europe

6.5%

Africa3%

Other10%

Africa3%

Other5%

Asia15.1%

Rest of Europe

6.8%

European Union32.9%

North America37.5%

(USA: 31.4%)

11

)USA: 28%(

Imports of Goods and Services (B$)

31.1

10.9

32.8

11.1

39.5

12.8

43.8

13.7

47.3

14.4

56.1

17.6

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007

Goods Services

Source: Central Bureau of Statistics, Ministry of Finance

30% growth in vehicle imports in the first 10 months of 200730% growth in vehicle imports in the first 10 months of 2007

12

Imports of Goods by Region

(excluding Diamonds)

Source: Central Bureau of Statistics, Bank of Israel, Ministry of Finance

Rest of Europe includes E. . F . T . A .

EU remains strongest source for imports and destination for exportsEU remains strongest source for imports and destination for exports

Africa0.7%

Other 16.6%

Asia19%

Rest of Europe

9.9%

European Union36.9%

North America

16.9%(USA: 13.4)

Other 17.8%

European Union 35.5%

North America

15.9%

Asia 20.7%

Africa 0.72%Rest of Europe 9.3%

(USA: 14.9%)

2006 2007

13

6.9

9.7

3.5

1.9

3.5

0.8

2.1

1.6

2.3

1.2

1.8

1.6

1.6

1.2

1.5

1.2

1.7

0.7

1.3

1.0

0

2

4

6

8

10

12

14

16

18

USAGermany

ChinaThe Netherlands

ItalyUK Turkey

France

JapanBelgium

15.2

4.8

4 3.4 3.2 3.1 2.5 2.4 2.3 2.1

6.9

10

3.5

1.9

3.5

0.9

2.1

1.6

2.3

1.2

1.8

1.6

1.61.2

1.51.2

1.9 1.3

0.9

0

2

4

6

8

10

12

14

16

18

USAGerm

any

China

The Netherlands

ItalyUK Turkey

France

Japan

Belgium

Israel’s Main Trading Partners($US Billions, excluding diamonds)

Source: Central Bureau of Statistics

2006

2007 I-XI

Exports to the US have risen even though the $US-NIS exchange rate Exports to the US have risen even though the $US-NIS exchange rate has depreciatedhas depreciated

14

16.8

5.44.4

3.7 3.5 3.42.8

2.7 2.5 2.2

EXPORT

IMPORT

Foreign Investments (B$)

Source: Ministry of Finance

1.7

4.53.1

9.6

5.2

12.3

1.73.2

3.95.4

2

9.1

4.8

9.5

14.2

25.8

9.6 10.5

0

5

10

15

20

25

30

1998 1999 2000 2002 2003 2004 2005 2006 2007

Direct Investments

Total Investments

15

An Avoidance of Double Taxation Agreement has been signed with An Avoidance of Double Taxation Agreement has been signed with Portugal. Includes issues such as income on capital, interest and royalties.Portugal. Includes issues such as income on capital, interest and royalties.

May assist in attracting Portuguese investors to Israel.May assist in attracting Portuguese investors to Israel.

Unemployment and Participation Rates by Quarters(Rate of Total Labor Force)

Source: Central Bureau of Statistics

9.2%9.0%

8.9% 8.9%8.8% 8.8%

6.7%

7.3%

7.7%7.8%8.3%

7.5%

54.9%

55.1%55.2%

55.6%55.5%

55.8%

56.0%

56.7%

55.6%55.5%

56.1%

56.6%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

2005Q1

Q2 Q3 Q4 2006Q1

Q2 Q3 Q4 2007Q1

Q2 Q3 Q4

54.5%

55.0%

55.5%

56.0%

56.5%

57.0%

Unemployment Rate

Participation in the Labour Force

108,000 new employees in 2007, of which 72,000 in a full time position108,000 new employees in 2007, of which 72,000 in a full time position

16

-11

30

50

13

42

6

74

- 3

96

25

48

16

80

30

2001 2002 2003 2004 2005 2006 2007

Business Sector Public Sector

Newly Employed Persons(Change in Israeli Employed Persons, in Thousands)

Source: Ministry of Finance, Bank of Israel

Since 2003: Rise in employment for women aged 55-64 and men aged 60-69Since 2003: Rise in employment for women aged 55-64 and men aged 60-69

17

Inflation Rate (Rate of Change in CPI, end of year)

Source: Central Bureau of Statistics, Ministry of Finance

1.3% 0.0% 1.4%

6.5%

-1.9%

1.2%

2.4%

-0.1%

3.4%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1999 2000 2001 2002 2003 2004 2005 2006 2007 *

ResponsibleResponsible fiscalfiscal policypolicy andand aa strongstrong NISNIS (vs. the $US)(vs. the $US) havehave stabilizedstabilized inflationinflation

18

Inflation Rate Worldwide (Rate of Change in CPI, end of 2007)

The Bank of Israel has reduced its interest rate to 3.25% because The Bank of Israel has reduced its interest rate to 3.25% because of expected world recession of expected world recession

19

0%1%2%3%

4%5%6%7%8%9%

Japan

Norway

Switzerland

Finland

Belgium

EU Germany

Portugal

Ireland

USAIsrael

Mexico

Iceland

Hungary

Trukey

3.4%

Sources: Central Bureau of Statistics, OECD

Criteria

Real GDP+ 4.2%

Business GDP+ 4.9%

Exports+ 4.7%

Private Consumption+ 4.3%

Public Consumption+ 2.0%

Investment in Fixed Assets+ 5.5%

Source: Ministry of Finance

Growth of Main GDP Components 2008

2008 Projection

19

Balances

Budget Deficit;

Current Account;

Net Foreign Debt

General Government Expenditure

Gross Public Debt

Gross Tax Burden

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22

23

24

25

Gross Public Debt (as percentage of GDP)

Source: Ministry of Finance

99.6%

102.0%100.7%

97.0%

87.7%

80.8%

80%

85%

90%

95%

100%

105%

2002 2003 2004 2005 2006 2007

Gross debt, as percentage of GDP may reach 60% in 10 yearsGross debt, as percentage of GDP may reach 60% in 10 years

22

Source: Ministry of Finance

Budget Deficit and General Government Expenditure

(Both as percentage of GDP)

Tax revenues up by 6.7% in 2007Tax revenues up by 6.7% in 2007

3.7%

0.02%

0.9%

1.9%

5.4%

3.6%

4.2%

0.7%

3.2%

1999 2000 2001 2002 2003 2004 2005 2006 2007

Budget Deficit

Government Expenditure

45.1%

45.6%

46.3%

48.1%

51.2%

50.0%

48.4%

51.0%

52.2%

23

Current Account and Net Foreign Debt

(As percentage of GDP)

Source: Bank of Israel

-1.1% -0.8%

1.2%

2.4%

3.3%

5.6%

3.1%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2001 2002 2003 2004 2005 2006 2007

Debt reduction & decreased immigration turned the current account Debt reduction & decreased immigration turned the current account from deficit into surplus since 2003from deficit into surplus since 2003

Current Account

Net Foreign Debt

2.8%0.1%

-2.3%

-5.7%

-9.6%

-16.7%

-24.2%-25.2%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

2000 2001 2002 2003 2004 2005 2006 2007

24

Source: Ministry of Finance

Gross Tax Burden (As percentage of GDP)

Tax burden has been in the vicinity of OECD average since 2003Tax burden has been in the vicinity of OECD average since 2003

37.1%

38.1% 38.1%

37.5%

36.4% 36.4% 36.4%

36.8%

37.3%

1999 2000 2001 2002 2003 2004 2005 2006 2007

25

International comparisons

and additional data

ICT and Business Sector’s Product

Central Bank Interest Rates

NASDAQ and Tel Aviv 100 Indices

Israel’s Credit Rating

Global Competitiveness Index

GCI: Selected Issues

Business Competitiveness Index ;Network Readiness Index

Dividend Distribute in past years

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Capital raised by VC funds and High Tech Companies

27

29

30

31

32

33-4

28

35

36

Israel’s ICT* and Business Sector’s Product (Annual % change)

-1.9%

-14.8%

-2.8%

0.7%

3.2%2.3%

7.2%

10.8%

6.5% 5.6% 6.5%

9.9%

6.1%

11.8%

-18%

-13%

-8%

-3%

2%

7%

12%

2001 2002 2003 2004 2005 2006 2007

Business ICT

* Information and Communication Technology

Source: Central Bureau of Statistics, Israel Venture Capital, Bank of Israel

The strong rise in ICT product derives from extensive R&D funding. The strong rise in ICT product derives from extensive R&D funding. 90% of business R&D is transferred to ICT. 90% of business R&D is transferred to ICT.

27

Capital Raised by Israeli Venture Capital Funds* and High Tech

Companies (M$)

1,438

1,013

2,587

3,092

1,317

1,986

393

1,138

6

1,011

585

1,465 1,4601,337

473

1,6221,759

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1999 2000 2001 2002 2003 2004 2005 2006 2007

Venture Capital

High Tech

*In vintage year: Year of first closing or first investment.

Source: IVC – Israel Venture Capital Research Center; No data regarding the amount of VC capital raised was available by the time of publishing

Capital Raising in the 4th Quarter 2007 – the Highest in 5 years

28

Central Bank Interest Rates

Israel vs. U.S.A

FF: Federal Funds

BOI: Bank of Israel

Source: Bank of Israel (BOI), Federal Reserve

0%

1%

2%

3%

4%

5%

6%

Ja

n (1

)2 3 4 5 6 7 8 9 1

01

11

2J

an

(1)

2 3 4 5 6 7 8 9 10

11

12

Ja

n (1

)2 3 4 5 6 7 8 9 1

01

11

2J

an

(1)

2 3 4

2004 2005 2006 2007

Both BOI and the Federal Reserve are lowering ratesBoth BOI and the Federal Reserve are lowering rates

Bank of Israel Rate

U.S. Federal Funds Rate

Currently: 3.25%

Currently: 2.25%

29

NASDAQ Index & Tel Aviv 100 (monthly average)

1000

1500

2000

2500

3000

3500

4000

01/2003

Jul 2003

Jan 2004

Jul 2004

Jan 2005

Jul 2005

Jan 2006

Jul 2006

Jan 2007

Jul 2007

200

300

400

500

600

700

800

900

1000

1100

1200

Nasdaq Index (left scale)

Tel Aviv 100 (right scale)

Source: Tel Aviv Stock Exchange (TASE) and the Ministry of Finance. * Real Time Gross Settlement

Tel Aviv Stock Exchange has implemented an RTGS* system, allowing Tel Aviv Stock Exchange has implemented an RTGS* system, allowing real time settlement of transactionsreal time settlement of transactions

30

Source: Credit Rating Agencies, Accountant General

Israel’s Credit Rating 1992-2007

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Moody's A2 Positive S&P A Positive Fitch A Stable

A1/A+

A2/A

A3/A-

Baa1/BBB+

Baa2/BBB

Baa3 /BBB-

Fitch Ratings raise Israel’s long-term credit from ‘A-’ to ‘A’Fitch Ratings raise Israel’s long-term credit from ‘A-’ to ‘A’

31

Source: World Economic Forum, Global Competitiveness Index, 2007-8

16

5839

2927

2522

2018

17

139

62

1

26

Global Competitiveness Index, 2007-2008

Countries that have been invited for open discussions for joining the OECD.

Israel Ranks Israel Ranks 1177thth Out of 125 Countries Out of 125 Countries

32

Global Competitiveness Index, 2007/8SELECTED CATEGORIES

0 5 10 15 20 25

Estonia

Germany

Korea, Rep.

Singapore

Australia

Hong Kong SAR

Denmark

Israel

Netherlands

United States

0 5 10 15 20 25

Norway

Belgium

Germany

Korea, Rep.

United States

Switzerland

Sweden

India

Israel

Finland

0 5 10 15 20 25

Hong Kong SAR

Norway

Ireland

Singapore

Netherlands

Sweden

Finland

United Kingdom

Israel

Switzerland

Venture Capital AvailabilityVenture Capital Availability

Source: World Economic Forum, Global Competitiveness Index, 2007-8

0 5 10 15 20 25

Hong Kong SAR

Ireland

United Kingdom

Finland

Denmark

Israel

Korea, Rep.

Japan

United States

Switzerland

Availability of Scientists & EngineersAvailability of Scientists & Engineers

Quality of Scientific Research FacilitiesQuality of Scientific Research Facilities Company Spending on R&DCompany Spending on R&D

RANK

RANKRANK

RANK

33

0 5 10 15 20 25

Chile

Denmark

Norway

Japan

United Kingdom

United States

Ireland

Israel

Hong Kong SAR

New Zealand

0 5 10 15 20 25

Norway

Belgium

Germany

Korea, Rep.

United States

Switzerland

Sweden

India

Israel

Finland

0 5 10 15 20 25

Hong Kong SAR

Norway

Ireland

Singapore

Netherlands

Sweden

Finland

United Kingdom

Israel

Switzerland

Strength of Investor ProtectionStrength of Investor Protection

Source: World Economic Forum; Global Competitiveness Index, 2007-8

0 5 10 15 20

Iceland

United States

Canada

Ireland

Israel

Germany

Singapore

New Zealand

United Kingdom

Hong Kong SAR

Availabilty of Latest TechnologiesAvailabilty of Latest Technologies

Utility PatentsUtility Patents Legal Rights IndexLegal Rights Index

RANK

RANK RANK

RANK

Global Competitiveness Index, 2007/8SELECTED CATEGORIES

34

(con.)

Russia

Greece

Chile

Slovenia

Portugal

Estonia

Israel

Germany

Japan

Canada

United Kingdom

United States

Switzerland

Denmark

Countries that have been invited for open discussions for joining the OECD.

Source: World Economic Forum; Global Competitiveness Index, 2006; Global Information Technology Report

GCI: Provides a holistic overview of factors critical to productivity and competitiveness [LINK TO SITE]

NRI: Measures the level of ICT (information and communication technologies) development of nations [LINK TO SITE]

5.71) 1(

5.58) 5(5.54) 7(

5.45) 9(

5.35) 11(5.27) 14(

5.22) 16(5.14) 18(

5.02 (20)4.48) 28(

4.41 (30)

4.36 (31)3.98) 48(

3.54) 70(

Network Readiness Index 2006-7

Business Competitiveness

Index2007-8

The business climate is a critical element of sustained economic growth

6455

4946

3027

2522

1916

128

52

1

36

35

Figures from Tel Aviv Stock Exchange

654

9 4

62

624577 578 584

606

25 32 44

21.0

3.4

7.5

12.712.1

3.3

0

100

200

300

400

500

600

700

2002 2003 2004 2005 2006 2007

0.02.04.06.08.010.012.014.016.018.020.022.024.0

Amout of public companies * (Right scale) Of which: New companies (Right scale)

Capital Raising ($B) ** (Left scale)

Source: Tel Aviv Stock Exchange 2007 Annual Report

The Israeli market continues to appeal to investors despite global competitionThe Israeli market continues to appeal to investors despite global competition

36

* End of Year

** Including option realization. Not including exchange-traded fund issues & realizaion by controled companies

Israel and the OECD

Real GDP growth in 2007-8

Nominal GDP growth in 2007-8

Unemployment Rate in 2007-8

GDP Based on PPP per Capita in 2007 (IMF)

Press for desired slide or continue:

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GDP Based on PPP per Capita in 2006 (OECD)

39

40

41

42

38

Real GDP Growth(Annual percentage of change, partial list)

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Source and projections: OECD and the Ministry of Finance, Israel

2.7%2.7%

07’ 08’

OECD has given Israel the Roadmap for accession to the organization...OECD has given Israel the Roadmap for accession to the organization...

5.3%

4.2%

38

Nominal GDP Growth

(Annual percent of change, partial list)

Source: OECD and the Ministry of Finance, Israel

0%

2%

4%

6%

8%

10%

12%

14%

16%

4.8%

7.5%

4.7%

.. and is now preparing a preliminary memorandum regarding the readiness .. and is now preparing a preliminary memorandum regarding the readiness level to the organization’s legal instruments.level to the organization’s legal instruments.

07’ 08’5.0%

6.7%

39

Unemployment Rate

(average)

Source: OECD, Central Bureau of Statistics, Israel

Israel therefore has created a professional “steering group” to prepare the Israel therefore has created a professional “steering group” to prepare the memorandum.memorandum.

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11%

Total OECD

Euro area

Slovak Republic

Greece

Spain

Portugal

Israel

Hungary

Finland

Italy

Ireland

United States

Korea

Switzerland

Norway

08

’ 07

’

40

08’ 07’

08’ 07’

08’07’

GDP Per Capitabased on purchasing-power-parity (PPP)

2007, (in $US)

Source: IMF, Ministry of Finance

Countries that have been invited, as well as Israel, for open discussions for joining the OECD.

-5,000

5,000

15,000

25,000

35,000

45,000

55,000

65,000

75,000

85,000

Luxembourg

IrelandN

orway

United States

IcelandA

ustriaN

etherlandsSw

edenJapanG

ermany

IsraelItalySpainG

reeceN

ew Zealand

Korea

SloveniaC

zech Republic

EstoniaSlovak Republic

PolandC

hileR

ussia

31,768 23,843

22,677 12,98212,096

Israel has been accepted to OECD’s development center – which is in Israel has been accepted to OECD’s development center – which is in charge of OECD – non-member developing countries relationscharge of OECD – non-member developing countries relations

IMF Calculation,2007

41

GDP per capita based on purchasing-power-parity (PPP)

2006, (in $US)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

32,098

25,762

Private expenditure per capita has grown by 4.8% in 2007

OECD Calculation,2006

Source: OECD, and the Central Bureau of Statistics, Israel 42

International Treaties

Israel’s Free Trade Agreements

Avoidance of Double Taxation Agreements

Cooperation in Industrial R&D Agreements

Protection of Investments Agreements

International Organization Memberships

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45-6

47

48-9

50

44

Israel’s Free Trade Agreements

USA

EFTA (1992)

Jordan (1995):

Canada (1997)

Turkey (1997)

Mexico (1999)

European Union (Association Agreement)

Egypt

MERCOSUR

44

1985

1992

1995

1997

1997

1999

2000

2004

Includes Romania and Bulgaria which have recently joined the EU) (

2007

Avoidance of Double Taxation Agreements

CroatiaCroatia

DenmarkDenmark

EstoniaEstonia* *

EthiopiaEthiopia

FinlandFinland

FranceFrance

GermanyGermany

GreeceGreece

AustriaAustria

BelarusBelarus

BelgiumBelgium

BrazilBrazil

BulgariaBulgaria

CanadaCanada

ChinaChina

Czech Czech RepublicRepublic

HungaryHungary

IndiaIndia

IrelandIreland

ItalyItaly

JamaicaJamaica

JapanJapan

LatviaLatvia

LithuaniaLithuania

* The agreement with Estonia has only been signed initially 45

(con.)

SwitzerlandSwitzerland

ThailandThailand

The NetherlandsThe Netherlands

TurkeyTurkey

UkraineUkraine

United KingdomUnited Kingdom

UzbekistanUzbekistan

USAUSA

LuxembourgLuxembourg

MexicoMexico

MoldovaMoldova

NorwayNorway

PhilippinesPhilippines

Portugal *Portugal *

PolandPoland

RomaniaRomania

RussiaRussia

SingaporeSingapore

SlovakiaSlovakia

SloveniaSlovenia

South AfricaSouth Africa

South KoreaSouth Korea

SpainSpain

SwedenSweden

* The agreement with Portugal has been recently ratified

Avoidance of Double Taxation Agreements

46

Cooperation in Industrial R&D Agreements

BelgiumBelgium

CanadaCanada

ChinaChina

FranceFrance

Hong KongHong Kong

ItalyItaly

NetherlandsNetherlands

PortugalPortugal

SpainSpain

UKUK

USAUSA

SingaporeSingapore

IrelandIreland

SwedenSweden

FinlandFinland

GermanyGermany

IndiaIndiaAustriaAustria

KoreaKorea

47

Protection of Investment Agreements

AlbaniaAlbania

ArgentinaArgentina

ArmeniaArmenia

BelarusBelarus

Bulgaria Bulgaria

CroatiaCroatia

CyprusCyprus

Czech RepublicCzech Republic

El-SalvadorEl-Salvador

EstoniaEstonia

GeorgiaGeorgia

GermanyGermany

HungaryHungary

IndiaIndia

KazakhstanKazakhstan

KoreaKorea

48

TurkmenistanTurkmenistan

UkraineUkraine

UruguayUruguay

UzbekistanUzbekistan

QIZ AgreementQIZ Agreement

EgyptEgypt

JordanJordan

LatviaLatvia

LithuaniaLithuania

MoldovaMoldova

PolandPoland

RomaniaRomania

SlovakiaSlovakia

SloveniaSlovenia

ThailandThailand

TurkeyTurkey

Protection of Investment Agreements )con(.

49

International Organization* Memberships:

BIS | BSEC (observer) | CE (observer)BIS | BSEC (observer) | CE (observer)

CERN (observer) | EBRD | FAO | IADB | IAEA CERN (observer) | EBRD | FAO | IADB | IAEA

IBRD | ICAO | ICC | ICCT (signatory) | ICFTU IBRD | ICAO | ICC | ICCT (signatory) | ICFTU

IDA | IFAD | IFC | IFRCS (observer) | ILO | IMF IDA | IFAD | IFC | IFRCS (observer) | ILO | IMF

IMO | Interpol | IOC | IOM | ISO | ITU | MIGAIMO | Interpol | IOC | IOM | ISO | ITU | MIGA

OAS (observer) | OECD (candidate)OAS (observer) | OECD (candidate) | OPCW (signatory)OPCW (signatory)

OSCE (partner) | PCA | UN | UNCTAD |OSCE (partner) | PCA | UN | UNCTAD | UNECE | UNEPUNECE | UNEP

UNESCO | UNHCR | UNIDO | UPU | WB |UNESCO | UNHCR | UNIDO | UPU | WB | WCO | WFP | WHOWCO | WFP | WHO

WIPO | WMO | WTOO | WTRO | WIPO | WMO | WTOO | WTRO | WTOWTO

* Economic Organizations 50

Relevant Sites

Back to Contents

Government Institutions:

OECD Stat Profile on Israel

Bank of Israel (BOI)

Central Bureau of Statistics

Israeli Government Portal

Ministry of Finance

Israel Securities Authority

Ministry of Industry, Trade and Labor

OECD Israel

Economic News:

“The Marker”

“Globes”

WWW.FINANCEISRAEL.MOF.GOV.IL

International Affairs Department Homepage:

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Uri Geva

International Affairs Department

Ministry of Finance, Jerusalem, Israel

FinanceIsrael@mof.gov.il

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