3 takeaways about Israel’s economy, starting 2015
Israel struggles to be reported in a positive mode in the global media. Yet her economy continues to move forward. Despite all the geopolitical concerns, as we enter 2015, there is much for the world to share in Israel’s continuing financial success.
First, as I discussed yesterday, the growth figures for 2015 are being revised upwards. If 2014 will see figures of around 2.5%, barely matching changes in population, 2015 will see a spurt of about 3.2%. Much of the improvement is due to the export performance.
Second, Israel’s high-tech sector continues to please overseas investors. “Exits doubled to a record $15 billion in 2014. This has been by far the best-ever year for the country’s high-tech and biomed sector in terms of exits.” That is around double last year’s total. In a year, when much of Europe’s economy continues to reflect retraction, these numbers reflect a major achievement.
As if to prove the point, just consider the app “Music Messenger“, a very simple way to send music from one mobile device to another. Based on a small kibbutz, “the Series A investment round reached $5 million from top artists in the electronic dance music (EDM) and urban communities, as well as managers and executives including: David Guetta, Tiesto, Avicii, Nicki Minaj, Sebastian Ingrosso, Dave Holmes (manager of Coldplay), etc“. Next June, it intends to launch in China with a large concert.
Third, for all the political uncertainties and despite Gaza’s war with Israel, Israel gas production is coming on line and beginning to generate extra revenues for to pay for public services. Unemployment has fallen to 5.6%. Tourism held up in 2014, maintaining the strong numbers of 2013. And the Tel Aviv Stock Exchange progressed by about 11%, a reasonable performance given the surrounding instabilities.
Wishing all of us have a prosperous, happy and healthy 2015.
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