Economic News from Israel
Recently the State of Israel celebrated its 67th Independence Day.
Amongst the media coverage by the Israel Hayom newspaper was economic commentary sourced from Dr Adam Reuter and his company Financial Immunities Ltd tracking economic growth in Israel over the past three decades. In the article was the following information:
- In 1984, the population of Israel was 4.1 million. Thirty years later, the population doubled to stand at 8.2 million.
- Today, the gross national product of Israel is $US307 billion, but 30 years ago it was a mere $US30 billion. That is an increase of more than 900%.
- In 1984, the GNP per capita of Israel was $US7,000, and in 2014 it climbed to $US36,000 - an increase of more than 400%.
- In 1984, Israel's foreign currency reserves amounted to $US3 billion. Thirty years later, Israel’s reserves have skyrocketed to $US90 billion - an indication of financial stability.
- The national deficit made up 17% of the GNP in 1984 and today only 3% - an 82% decrease.
- In 1984 Israel's exports were valued at $US10 billion, and 30 years later they are valued at $US96 billion - that's an 860% increase.
- In 1984 high-tech exports were valued at $US1 billion, and at $US37 billion in 2014 - a 3,600% increase.
- In 1984, the public sector employed 75% of the working public, while today that figure is only 43%. Employment of women was 34% and by 2014 it had risen to 54%.
- Israel’s national expenditure on research and development has risen by more than 220% over the last 30 years.
- In 1984 Israel had no independent sources of energy, but today, 38% of Israel’s energy comes from domestic sources, and the country is well on its way to complete energy independence.
- Israel did not have any desalinated water in 1984 and water was a scarce commodity. Today more than 40% of Israel’s water consumption comes from the desalination plants that it built.
- Over the last five years, the cumulative economic growth of Israel was 21% - the second highest rate among the 34 member nations of the OECD.
- According to the Wall Street Journal, Israel is the second most educated country in the world, placing behind Canada and ahead of Japan. While there were 64,000 Israelis enrolled in higher education institutions in 1984, there are currently 306,000 enrolled in colleges and universities across the country.
- Over the last twenty years, the Israeli economy grew by 180%, while the number of residents increased by only 45%.