The year 2010 is behind us. Despite downturns in Europe and a currency that has been revalued over 15% in 18 months, Israel has achieved 4% growth, yet again. And much of this is export derived. So what’s in store for 2011?

Many of Israel’s trade partners have entered January looking over the shoulder at the past. Greece, Portugal, Ireland and Spain are still in recovery mode. The UK retail sector as usual will spend weeks working out if the winter sales were successful. Germany and Australia are the rare exceptions to a non-too-optimistic OECD picture.

But in Israel……

Gas exploration will forge ahead. Many of the finds will not produce direct revenues for a few years and then they will be directed to overseas markets. However, the new resources will drive up the stock market and create jobs at primary and secondary sectors.

At a macro level, the government is slowly pushing ahead with tax reforms. Personnel tax brackets have been updated from the first of the month. Corporation tax has dropped another notch to 24%.

And the government is finally learning where it can make a difference to the lives of citizens without playing “big brother”. For example, Israeli society is dominated by the use of mobile phones. The service suppliers have churned out billions in profits with poor service in return – I write from experience. Fortunately, charges from landline calls have just been slashed. And licenses have been handed over to two extra competitors. There is hope.

What else? It is probable that a possible real estate has been burst. The stock market is breaking new highs. The one real fear is that trading partners will not perform as needed, thus acting as a break on further growth.

As for innovation, the trigger for much of this growth, I have 4 new start up clients due to commence work with me during January. Israel’s economy is on the move.