International Market Development

International market development | Comprehensive analysis of Israel's economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-30 10:13:04

In this article, we mainly introduce the basic situation of the Israeli market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, GDP, foreign exchange reserves, employment, prices, taxes, etc.

  Introduction

The State of Israel, referred to as Israel. Belongs to West Asia. It is located on the southeastern coast of the Mediterranean, with Lebanon to the north, Syria and Jordan to the east, and the Red Sea and Egypt to the southwest.

Israel is a developed capitalist country. Contribution to the development of science and technology is considerable. Since the founding of the nation, Israel has been committed to scientific and engineering research. Israeli scientists have made outstanding contributions to genetics, computer science, optics, engineering and other technological industries. The most well-known Israeli research and development industry is the military science and technology industry. It is also well-known for research and development in agriculture, physics, and medicine.

  Capital

It is currently Tel Aviv. Tel Aviv is the capital of Israel and an emerging port city along the Mediterranean Sea. It is located at 32°05′ north latitude and 34°46′ east longitude. Tel Aviv starts from the lower reaches of the Vergon River in the north to the Jaffa Bay in the south, covering an area of about 50 square kilometers. The city area is long and narrow, stretching about 9.6 kilometers along the coast.

When the State of Israel was established in 1948, it was designated as the capital. Later it merged with Jaffa and was called Tel Aviv-Yaffa. But Israel believes that Jerusalem is the undisputed capital of Israel, which is also the focus of the Israeli-Palestinian conflict. Internationally, including my country’s recognized Israel’s capital is Tel Aviv, and the holy city of Jerusalem is a religious legacy. Both Israel and Palestine call it their territories and capitals. However, the Israeli-Palestinian dispute has a long history. At present, Jerusalem does not belong to the law. These two regions and countries.

  Main City

Jerusalem

With a population of 780,200, an area of 126 square kilometers, and an altitude of 835 meters, it is the most populous and largest city in Israel. It is also the political and religious center of Israel. The parliament, most government departments and the Supreme Court are located here. The Old City of Jerusalem has a history of 3,000 years and is one of the oldest cities in the world. It is also a holy place for Judaism, Christianity and Islam.

Jerusalem - Photo | Google

Tel Aviv-Jaffa

Founded in 1909, Tel Aviv is Israel’s first purely Jewish city; it merged with the ancient port city of Jaffa in 1950 and gradually developed into a modern city on the Mediterranean coast. The city has a population of 404,000 and an area of approximately 51 square kilometers. It is the commercial, financial and cultural center of Israel. Due to its location on the seashore, the beautiful Mediterranean scenery, various entertainment and nightlife, it is known as the "city that never sleeps". In November 2005, it became a sister city with Beijing.

Tel Aviv - Photo | Google

Haifa

Israel’s largest port city, with a population of 266,000 and an area of 60 square kilometers, is the center of oil refining, chemical, pharmaceutical, and high-tech industries. It is also the most important city and economic center in northern Israel. Over the years, the Jewish residents of the city have got along well with Arab residents, who make up 10% of the city’s population, and have been hailed as a model. It became a sister city with Shanghai in June 1993.

Haifa - Photo | Google

  Jet Lag

Beijing time is 6 hours faster than Israel.

  Population and Ethnicity

9.092 million (September 2019), of which 74.4% are Jews, 21% are Arabs, and the rest are Druze.

People gather at the Wailing Wall - Photo | Google

  Language

Hebrew is the official language and English is commonly used.

  Main Holiday

Shabbat: Every Friday from sunset to Saturday sunset;
Rosh Hashanah: about September in the Gregorian calendar;
Yom Kippur: September and October about Gregorian calendar;
Feast of Tabernacles: approximately September and October of the Gregorian calendar;
Passover: about March and April of Gregorian calendar;
Holocaust Remembrance Day: Approximately April and May of the Gregorian calendar;
Independence Day (National Day): Approximately April and May of the Gregorian calendar. Israel declared its independence on May 14, 1948. Although Israel uses the Gregorian calendar in its daily life, all ethnic holidays use the Jewish calendar. Therefore, the annual independence day is not necessarily May 14th in the Gregorian calendar.

Israel's Culture Photo | Google

  Natural Resources

The mineral resources are relatively poor. Mainly include potassium salt, limestone, copper, iron, phosphate, magnesium, manganese, sulfur and so on. The forest coverage rate of the country is about 5.7%, and the total area is about 114,300 hectares (127 million duna mu).

  Main Industry

Agriculture

Israel's natural environment is harsh, but its agriculture is developed, and it enjoys the reputation of "Winter Kitchen" in Europe. In 2017, Israeli agriculture accounted for about 3% of GDP. According to 2015 data, the planting industry accounted for 58.25%, and the farming industry accounted for 41.75%. Israel has a high level of agricultural technology, and its drip irrigation equipment and development of new varieties are world-renowned. The rural economy is dominated by kibbutz, moshav and individual farms.

Manufacturing

Starting in the late 1960s, Israeli industrial production not only met domestic market demand, but also exported a large amount of it. Since the 1990s, as labor costs have continued to increase, some traditional labor-intensive industries have been gradually eliminated, and high-tech or high-tech industries have become the focus of development. The main industrial sectors are: machinery manufacturing, military industry, aircraft manufacturing, chemicals, electronics and communication equipment, precision instruments and medical laser equipment, solar energy utilization, building materials, textiles, papermaking, diamond processing, etc.

Renewable Energy

Israel lacks conventional energy and its energy demand is highly dependent on imports. For a long time, Israel has made many active explorations in improving energy efficiency and researching and developing new energy sources. At present, there are more than 100 companies in Israel that have relatively mature advanced technologies for the development and utilization of renewable energy, involving solar energy, wind energy, geothermal, biofuels, wave energy, nuclear energy and other relatively complete new energy fields, and in solar and geothermal technologies. It is in the leading position in the world and has played an important role in pushing mankind to get rid of excessive dependence on carbon-based fuels.

Biotechnology

Israel attaches great importance to the life sciences and biotechnology industries, and its comprehensive strength in the biotechnology industry leads the world. Israel's bio-industry is mostly interdisciplinary technology, especially the intersection of information technology and biotechnology is very obvious, which fully reflects Israel's global technological leadership and overall R&D strength in these fields. 95% of Israeli medical device products use modern information technology, making it the country with the most extensive use of information technology in the field of medical device manufacturing in the world. In the biotechnology industry, biopharmaceuticals and medical devices account for approximately 72%, bio-agriculture accounts for approximately 4%, and bio-information products and disease diagnosis technologies account for approximately 22%.

Information Communication and High-Tech Industry

Israel's high-tech development is in a leading position in the world, with a strong academic infrastructure, rich military and civil R&D experience, and a large amount of support from the government and private enterprises. Its high-tech R&D investment accounts for the largest proportion of GDP Third in the world, second only to Japan and Switzerland. Thanks to Israel's originality in some high-tech fields, Israel's information and communication industry is developed and one of the country's leading high-tech industries, with a complete industrial chain from electronic components to final equipment and services. The numerous emerging startups in this industry have brought Israel a large number of venture capital and M&A investment opportunities, many of which have become global leaders in their respective fields.

Water Technology

Israel is the country that uses the most recycled water in the world, with a water recycling rate of 75%, and has the world's largest reverse osmosis desalination plant. The cost of fresh water is about 60 cents per cubic meter. The agricultural low-pressure drip irrigation technology developed by Israel makes irrigation water use efficiency as high as 80%, ranking first in the world. 60% of Israel's agricultural land uses drip irrigation technology. In the field of drip irrigation technology, Israeli companies account for more than 50% of the global market. 30% of start-up companies in Israel are related to water conservancy. It is the world's largest water technology innovation base and the only country in the world that has successfully curbed the trend of desert expansion and continuously expanded the scale of agricultural land. In addition, Israel also has the world's leading technology in water delivery equipment, instruments, and meters.

Diamond Processing Industry

Israel is one of the most important gem-quality diamond processing and trading centers in the world. In terms of value, approximately 60% of the world’s gem-quality diamonds are processed in Israel. Israel Diamond Trading has 3,000 members and more than 1,300 private workshops. It has the world's most advanced diamond processing factory, cutting-edge diamond processing technology and experienced diamond artisans. In recent years, Israel has expanded its production bases to overseas regions such as India, China, and Africa, taking advantage of foreign costs, processing diamonds and importing them to Israel, and then selling them to North America, Asia, Europe and other markets by Israeli companies.

Diamond exports are one of Israel’s most important export industries, accounting for more than a quarter of all industrial exports. The United States, Hong Kong, and Belgium are the three main export markets for Israeli polished diamonds.

  The economic development situation is worrying

In 2019, Israel’s GDP was approximately US$517.3 billion (at current prices), and its per capita GDP was US$56,600. The actual economic growth was 3.3%.
image

Israel's GDP growth rate trend graph over the years | TRADING ECONOMICS

In 2020, the security situation between Israel and neighboring countries has eased, and there is even the dawn of peace. However, the situation of the new crown epidemic in Israel is not optimistic. The epidemic is constantly eroding this Middle Eastern country.

Leumi Bank of Israel expects GDP to drop to -7.9% in 2020.

Rapid growth of foreign exchange reserves

Israel's foreign exchange reserves trend chart over the years | TRADING ECONOMICS

From 2011 to 2020, Israel’s foreign exchange reserves have grown rapidly.

The overall increase in employment is stable, and the unemployment rate rebounds sharply

Employment Trends in Israel over the Years | TRADING ECONOMICS

Israel's unemployment rate trend chart over the years | TRADING ECONOMICS

The Israeli government launched a second round of economic stimulus plan in July to help people affected by the epidemic.

After the partial blockade in March, the unemployment rate in Israel soared to 27%, but as people return from vacation, the unemployment rate is still at a high level of 21%.

Prices are generally stable, and the inflation rate has been hovering at a long-term low

Israel Consumer Price Index CPI Trend Chart | TRADING ECONOMICS

Israel's inflation rate trend chart over the years | TRADING ECONOMICS

From 2012 to 2020, prices in Israel are relatively stable, with only a small increase.

Israel's inflation rate continued to fall from 2012 to 2020, hovering at a low level of -2%-2%, and once fell to a negative number in 2020, and the economic growth rate has dropped significantly.

Corporate income tax rate 23%

Israel's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Israeli corporate income tax rate is 23%.

Personal income tax rate 50%

Israel's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Israeli personal income tax rate is 50%.

www.bozhou-int.com

Previous : International market development | Comprehensive analysis of Irish's economy and market conditions

Next : International market development | Comprehensive analysis of UAE's economy and market conditions