Israel’s GDP per capita is $17,900, the highest among the world’s 43 emerging markets that have extensive commercial and investment relations with OECD-member countries. The figures are based on the latest OECD figures on the Israeli economy.
Israel’s GDP per capita is 88% of the OECD average of $20,300, and increased by over 50% in the 1990s. 80% of Israel’s GDP per capita growth in this period came from foreign trade and the rapid development of Israel’s high-tech industries.
The OECD figures take into account the severe contraction in Israel’s GDP per capita in the past two years. Israel’s GDP per capita had fallen by 10% since the outbreak of the intifada in October 2000. In addition to the intifada and security situation, other factors contributing to the fall in Israel’s GDP per capita are the high-tech crisis and Nasdaq crash, and the US economic slowdown that affected Israeli exports.
The OECD stated that foreign investment in Israel in 1992-2002 was over $18 billion. Foreign investment in Israel exceeded Greece ($9.4 billion), Turkey ($11.8 billion), but was less than in New Zealand ($21 billion), Hungary ($22 billion), Portugal ($24.3 billion), the Czech Republic ($26.8 billion) and Chile ($34.9 billion).
49% of foreign investment in Israel came from the US and Canada, 27% from Europe, 6% form Far Eastern countries, and 18% from the rest of the world.
The number of Israeli issues on European capital markets rose from one in 1994 to 32 in 2001, and in the US from 17 in 1993 to 154 in 2001.
Published by Globes [online] - www.globes.co.il - on November 28, 2002