Презентация министерства финансов Израиля о вкладе технологического и венчурного компонента в экономику.

1. ECONOMIC HIGHLIGHTS 3 rd QUARTER 2007 STATE OF ISRAEL MINISTRY OF FINANCE INTERNATIONAL AFFAIRS DEPARTMENT October 10, 2007

3. Main Economic Indicators and Forecast Source: Central Bureau of Statistics , Bank of Israel, Ministry of Finance. * Using the estimate NIS made by the Ministry of Finance, Multiplied by Bank of Israel’s average US$-NIS exchange rate for 2007. ** Predicted Annual % Change done by the Ministry of Finance. Note differences between real and nominal figures. GDP per capita by PPP data was available only for 2005 and 2006. Economic Figures 5 27.68 26.05 2006 data: Israel 21 st compared to OECD GDP per Capita (OECD Calculated by PPP, thousands of $) 2.4% 7.5% 7.9% 6.7% 3.6% 20.8 5.4%** 156.9* 2007F -0.1% 2.4% 1.2% -1.9% Inflation Rate ( CPI, end of year) 4.9% 3.3% 0.4% 0.5% Current Account (% of GDP) 8.4% 9.0% 10.4% 10.7% Unemployment Rate (%) 61.7 57.5 52.3 44.4 Imports of Goods & Services (B$) 62.98 57.57 52.8 43.5 Exports of Goods & Services (B$) 3.4% 3.5% 3.4% 0.4% GDP per Capita Growth Rate (%, Current prices) 20.1 18.9 18.1 17.2 GDP per Capita (current prices, thousands of $) 5.2% 5.3% 5.2.% 2.3% GDP Real Growth Rate (%) 139.1 131.2 124.8 116.9 GDP (current prices in B$) 2006 2005 2004 2003 Criteria

4. GDP Growth - Israel compared to the World (Annual rate of change (%), in constant prices) Source: Ministry of Finance, Israel Export Institution Projections for 2007-8: Ministry of Finance; for 2008-9: Israel Export Institute Economic Figures 7 Private consumption in Israel is a leading factor, as it is worldwide

5. Major GDP Components (Annual rate of change (%), in constant prices) Economic Figures Source: Central Bureau of Statistics, Ministry of Finance 8 2006 was characterized by sustainable growth in all GDP components

6. Exports of Goods and Services (B$) Source: Central Bureau of Statistics H1: 1st half Economic Figures 9 Almost all forms of export registered high growth throughout 2006

7. Structure of Industrial Exports 35% 65% 23% 24% 76% 77% 27% 74% 26% 27% 74% 73% 26% 73% 75% 25% 25% 75% * Jan-Aug, seasonally adjusted, at annual rate. Economic Figures 11 High Tech and pharmaceuticals rose by 20.6% and 50.7%, respectively, in 2006

8. Foreign Investments (B$) Source: Ministry of Finance Economic Figures 15 2006 registered nearly one hundred purchases of Israeli technology companies

9. Estimated Growth of Main GDP Components 2007 Source: Ministry of Finance Economic Figures 19 + 9.1% Investment in Fixed Assets + 3.7% Government Consumption + 5.2% Private Consumption + 6.7% Exports + 6.2% Business GDP + 5.4% Real GDP Estimate for 2007 Criteria

10. Source: World Economic Forum, Global Competitiveness Index, 2006 Israel Ranks 15 Out of 125 Countries (2005 Rank was 23) 59 58 48 47 34 28 24 21 18 15 10 8 6 4 1 42 Additional data 31 Global Competitiveness Index, 2006

11. Global Competitiveness Index, 2006 SELECTED CATEGORIES Additional data Venture Capital Availability Source: World Economic Forum, Global Competitiveness Index, 2006; Israel Export Institute Technological Readiness Quality of Scientific Research Facilities Company Spending on R&D 32

12. Dividend Distribution in the Past Years (NIS Millions) Source: Tel Aviv Stock Exchange Additional data 34 The Israeli market continues to appeal to investors despite global competition

13. Israel and the OECD Real GDP growth in 2006-7 Nominal GDP growth in 2006-7 Unemployment Rate in 2006-7 GDP per Capita in 2006 Press for desired slide or continue: Back to Contents GDP Based on PPP per Capita in 2005 (OECD) 37 38 39 40 36

14. Real GDP Growth (Annual percentage of change, partial list) Source: OECD and the Ministry of Finance, Israel Israel and the OECD 5.1% 3.2% 35 2.7% 5.4% OECD has invited Israel to discussions for membership of the organization… 06’ 07’

15. Unemployment Rate (average) Source: OECD, and the Central Bureau of Statistics, Israel H1: 1 st half 5.9% 8.4% Israel and the OECD 38 7.8% 5.6% 7.5% 7.1% ...and ranks among the world's leading countries with respect to scientists, engineers, high-tech start-ups and R&D spending per capita. 2006 2007 H1

16. GDP (based on purchasing-power-parity (PPP) ) per capita, in 2006, IMF calculation , ($US) 30,464 23,843 22,677 12 ,982 12,096 Israel and the OECD 39 In 1996, the OECD approved Israel’s request to participate in it’s activities Source: IMF, Ministry of Finance Countries that have been invited for open discussions for joining the OECD.