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These days a new book called Startup Nation, the Story of Israel's Economic Miracle, by author Dan Senor, examines

how tiny Israel is a technological giant in today's global economy.It argues that Israel is not just a nation but a state

of mind; and its old fashioned “chutzpa” goes a long way toward economic prosperity.

We can find a solid ground for the book’s arguments in the OECD (Organization for Economic Cooperation and

Development) last reports release on Wednesday January 20^th 2010. The report says: “Israel has withstood the

global downturn, Gross domestic product grew by an estimated 0.5 percent in 2009, more than previously

expected…GDP growth in 2010 is expected to reach between three and three and a half percent...”

Same data is to be found in many other international sources.

So what is there in the heart of Israel’s Economy?

And why is it becoming more and more attractive for investors from all over the

world?

Israel's Economy – General Information

Israel has a diversified, technologically advanced economy with substantial but decreasing government ownership

and a strong high-tech sector.

Israel puts a premium on research and development, with many more people per capita in this field than any other

country in the world.
For example, in the Jewish state, 140 people per 10,000 work in research and development. The U.S. is number two

in the world, with 85 people per 10,000.

Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the

past 20 years.

Israel is One of the World’s Major Exporters of:

Cut Diamonds

High-Technology Equipment

Military Equipment

Agricultural Products (fruits and vegetables)

Israel's GDP has been growing steadily since the summer of 2003 at a solid annual average of 5% a year.

Despite the global financial crisis, the Israel economy showed 3.9% growth in 2008.

The government's cautious financial policy and structural reforms over the past few years have helped to induce

strong foreign investment, tax revenues, and private consumption, setting the economy on a solid growth path.

International Agreements

Israel has signed Free Trade Agreements with the following countries:

The European Union

The United States

The European Free Trade Association

Turkey

Mexico

Canada

Jordan

Egypt

On 18 December 2007, Israel became the first non-Latin American country to sign a free trade agreement with the

Mercosur trade bloc.

In May 2007, Israel was invited to join the OECD.

In January 19^th 2010, Israel signed an agreement with OECD Secretary General Gurría and is expected to join the

organization during 2010.

" I can feel the economic vitality of Israel in these rooms and corridors.

I can sense the powerful creative impulses of A Truly EmerginEconomy.”

(OECD Secretary-General, Gurría in Tel Aviv, November 1^st 2007).


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