Israel Industries:The Israeli industry maintains its position as a leading international industry

The Israeli industry maintains its position as a leading international industry.

In general, the Israeli economy started the year 2019 with a strong GDP growth of 5.2%.

The activity continues its vigorous sequence and is particularly illustrated in the high-tech sector.

The growth comes mainly from the technological, scientific and technical sector. The results for the first quarter of 2019 confirm that the expansion cycle continues at a good pace.

Sustained growth in the global economy and anticipated acceleration in the United States will continue to have a positive impact on the technology sector.

We also find that GDP growth in Israel increased sharply in the first quarter of 2019.

The economy grew by 5.2% in the first quarter. Growth was 3.9% in the fourth quarter of 2018 and 2.8% in the third quarter of 2018.

Commercial production increased 5.8% in the first quarter of 2019, then 3.9% in the fourth quarter of 2018 and 2.5% in the third quarter of 2018. Exports of goods and services reached 4%. 9% in the first quarter of 2019.

The job market is doing particularly well and, combined with dynamic demographics (around + 2% per year), is helping to sustain consumption and growth. The unemployment rate was reduced from 5.9% of the labor force in 2014 to 3.6% in early 2018, its lowest level since the mid-1970s.

The average wage has increased over the recent period, increasing purchasing power (the average gross nominal wage now reaching a level of 10 200 shekels, or about 2500 euros). This increase is due in part to the decision in 2017 to raise the minimum wage from 5,000 shekels to 5,300 gross shekels (about € 1,300). This level, however, remains low considering the rising cost of living in Israel.

Exploitation of recently discovered gas deposits, planned investments in infrastructure in the coming years (energy, transport) and Israel’s specialization in technological innovation (4.3% of GDP devoted to civil R & D) will support growth in the longer term. The high-tech sector, which represents 8.3% of jobs, around 15% of GDP and 50% of exports, encourages investments ($ 5.2bn in fundraising in 2017) and exports of services (growth in 8% per year).

The management of public expenditure is also generally satisfactory. According to the Israeli Ministry of Finance, the controlled budget deficit stood at 1.97% of GDP in 2017 (after 2.15% in 2016). Government debt has been declining steadily for 10 years, from 92% of GDP in 2004 to 61.1% at the end of 2017.

The deficit target of 2.9% forecast for 2018 and 2019 (budget voted in advance in March) is not likely to call into question the solid fundamentals, even if a slight increase in the debt / GDP ratio is possible. The rating agencies are also aligned with a sovereign debt rating of “A +” with a stable outlook.

The external accounts situation is solid. The current account showed a significant surplus of $ 12 billion in 2016, reduced to $ 10.5 billion in 2017, or 3% of GDP. Inward direct investment flows, which were also significant, were in the order of $ 12.3 billion in 2016 and $ 19 billion in 2017. The external assets of the Central Bank continued to grow, reaching $ 115 billion. $, one-third of GDP and more than one year of imports of goods and services.

Negative in 2016, inflation was 0.4% in 2017. This level of inflation reflects a decrease in non-housing prices parallel to an increase in housing prices (especially on the purchase side). The Bank of Israel has set a target range for inflation of 1 to 3 percent and has maintained its policy rate for several years at 0.1 percent. She is confident that inflation will reach its target in the near future.

Israel has long been perceived as a developing country, but since the 2000s it has been a member of the OECD (the “rich country club”) and its GDP per capita is now comparable to that of Spain or South Korea, which makes the country the 37th richest in the world according to this indicator.

In recent years, Israel’s economic indicators have been particularly favorable: growth has been above 3%. In recent years, Israel’s economic indicators have been particularly favorable: growth has been above 3% per year since 2015 and inflation below 5%. In addition, the unemployment rate is around 4%, the current account with a large surplus, the public deficit of around 2% of GDP and the public debt relative to GDP is steadily declining. Compared to other developed countries, especially Europe and Japan, Israel is an undeniable success story.

This strong growth is due in particular to the very good training of the population and to a high technological level which allows the country to export high quality products and to develop a dense tissue of innovating companies. Indeed, Israel spends more than 4% of its GDP on research and development, compared to just over 2% in France and 2.7% in the United States.

In this particularly favorable economic context, the Israeli industry continues to strengthen these leading sectors, particularly in the following areas:

Life Science

Ranked fourth worldwide by the number of patents registered per person in the biotechnology sector, Israel has the talent to innovate, but also the skills needed to develop successful companies based on cutting-edge technological research.

Government incentives are a fundamental factor that allows companies to continue their development.

Water Technologies

Because the geographical and climatic context has imposed it on the State of Israel, areas such as technology and water scarcity are and remain national priorities.

As a result, Israel’s success in meeting the country’s water needs stems from its ability to integrate multiple solutions under multiple constraints.

Telecommunication

In order to facilitate the transfer of information in real time because of the reasons of national security, Israel has established itself as a major player in the telecommunications industry.

 Israeli companies are attracting leading institutional investors by raising in a single year near 2004, $ 88 million from venture capital funds

Homeland Security

Homeland security in Israel remains a national priority.

Due to its particular geopolitical position, Israel invests heavily in the development of advanced technologies related to this area of ​​expertise.

Several partnerships have been signed with key security officials at airports, ports, governments, institutions and recreation centers.

Automotive

Israel does not have car manufacturers but more than a hundred subcontractors are present. Initially intended to feed the security and aeronautics sectors, Israeli companies have successfully adapted technologies from military R & D to civil use, thus becoming a key technological hub.

Semiconductor Industry

The semiconductor market is a growth driver for many sectors including microprocessors, voice and data communications, Wireless, IP and communications networks, the automotive industry, defense and many others. sectors that represent excellent opportunities for cooperation and investment.

Chemical products

The chemical industry officially started at the beginning of the last century, when the state decided to extract minerals from the Dead Sea. At the founding of the State of Israel, the new government created several state-owned enterprises to exploit commodities and process derivatives.

Agro-Technology

Israel’s high level of development in this area is due to the close cooperation of scientists, farmers, agricultural advisers, experts, and related industries, which contributes to the development of state-of-the-art local than global.

The film industry

The international success of Israeli films is reflected in the increase in co-productions and foreign investment. These investments reached $ 7.5 million in 2008, representing 40% of the total investment in this sector in Israel. 

New media 

Israel is home to more than 700 companies in the fields of new media specializing in content creation, video distribution and management, gaming, broadcasting, digital and cable television, IPTV and satellite services.

Among its members, Israel has key giants like Bigband, ICQ and NDS, as well as more than 400 innovative and enterprising startups

The year 2019 is also characterized by industrial innovation, which remains one of the major assets of the industry in general:

6 Israeli startups have enjoyed international success without any measure.

Vayyar Imaging, –

Innoviz

SpacePharma

ECOncrete

Sight Diagnostics

Waze

Vayyar

Vayvar : The company’s 3D imaging technology is used in cars, smart homes, agriculture, robotics, medicine, and more. Vayyar’s sensors can see through materials, differentiate between objects and people, and map environments in real time. Vayyar technology can be useful in all areas, from eldercare to home improvement (its Walabot device reveals hoses or wires behind the wall before drilling).

Innoviz manufactures intelligent LiDAR systems – the “eyes” of next-generation autonomous vehicles. Innoviz’s LiDAR sends pulsed laser beams to measure and monitor the environment of the car. The company, which won an award at the 2019 CES in Las Vegas, is now part of the BMW self-propelled vehicles that will be launched by 2021 and inaugurates a 4,000-square-meter production site in China.

SpacePharma helps pharmaceutical companies perform weightless testing, an environment conducive to faster and often stronger growth of bacteria than on Earth. “On Earth, a petri dish lets you develop a two-dimensional culture,” SpacePharma president Yossi Yamin ISRAEL21c said. “But with low gravity in orbit, you get a third dimension.” One of SpacePharma’s minilabs is integrated with the International Space Station.

ECOncrete: A concrete wall is often located between the ocean and settlements, but traditional gray concrete damages the ocean ecosystem and causes an increase in harmful and invasive species. ECOncrete has developed a blue-green concrete that enhances the ecological value of urban and coastal infrastructure, strengthening its resilience and strengthening the vegetation cover. The Israeli company has worked on projects in New York, Georgia, Florida and London.

Sight Diagnostics has developed a platform for blood analysis and infectious disease diagnosis based on AI. The company’s OLO device, which is currently undergoing clinical trials in the United States, offers full blood count (CBC) testing from finger prick samples. treatment, providing results in minutes. Sight also manufactures a malaria detection kit now used to diagnose malaria in 25 countries.

Waze, the Google-sponsored Google-owned and Google-sponsored traffic application (whose R & D still operates in Israel while headquartered in Silicon Valley) has been cited by Fast Company for its work with local government agencies (such as the Port Authority of New Zealand). York and New Jersey) to manage traffic and modernize transportation infrastructure. Fast Company was also impressed by Waze’s carpool coupling service, launched in the United States in 2018, and a new warning system designed to prevent adults from accidentally letting children into the car .

Haim Nadiv Israel Industries

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