A great improvement, but we have a long way to go. If California and Massachussetts are counted separately, Israel ranks third in the world. Aren't we curious about India?
Straight From The Jerusalem Boardroom #112, February 9, 2007
1. MORGAN STANLEY, Jan. 10, 2007: "Foreign capital flows to Israel surged from $3.2BN in 2002 to $11.6BN in 2005 and a record level of $23.4BN last year
The Shekel is fundamentally undervalued against the dollar and even more so against the euro
Despite geopolitical constraints and indeed the eruption of a guerilla war in Lebanon, the Israeli economy has continued to grow at a robust pace
Israel's economy has the strength to withstand a global slowdown
The Bank of Israel has opted for monetary easing and lowered short-term interest rates even below those in the US
Consumer price inflation declined from 3.8% in April to minus 0.3% in November
Budget deficit [was reduced] from 5.4% of GDP in 2003 to 0.9% last year
The current account surplus is not just a cyclical phenomenon. Israel's current account balance moved from a deficit of 0.5% of GDP in 2002 to a surplus of 2.9% in 2005 and about 6% [surplus] last year
" (Globes, Jan. 11, 2007).
2. ISRAEL RANKS 3RD IN THE WORLD ($1.4BN) behind California ($12.4BN) and Massachusetts ($2.8BN), ahead of New York ($1.3BN) and Texas ($1.2BN) in the level of 2006 high tech investments, according to ERNST YOUNG. The 2006 high tech investment in Israel increased 13% over 2005. According to Israel's IVC, 2006 totaled $1.6BN, compared with $1.3BN 2005, $1.5BN 2004, $1MN 2003, $1.1BN 2002, $2BN 2001, $$3.1BN 2000 and $1BN 1999 (The Marker, Jan. 23).
3. ACCEL's MANAGING PARTNER, Joe Schoendorf: "Israel, China and the Silicon Valley are the focus of future technologies Over 50% of the $400MN invested by us since 2001, have been invested in 20 Israeli companies Exacerbated security threats have enhanced technological innovations" (The Marker, Jan. 25).
7. HP is hiring 150 software engineers to its Israeli R&D center which is HP's largest R&D center in the world - consistent with its Vice President, Tom Hogan's, statement that "Israel is HP's winning card!" (Globes, Jan. 22).
8. Israel's EXPORTS grew by $3.7BN, while IMPORTS increased by $2.7BN. Exports to the US (excluding diamonds) - $9.6BN, Germany - $1.7BN, England - $1.4BN, Holland - $1.3BN, France - $1BN (The Marker, Jan. 18).
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