Statistilite 93. Israel in statistics

Transcription

1 Statistilite 93 Israel in statistics

2 1. Population Nurit Yaffe The Israeli population grew from 86, in May 1, 1948 (Independence Day) to 7.2 million at the end of 27. It is projected that by 23 the population of Israel will be 1 million. Between 1948 and 27, the population grew at an average annual rate of 3.8%. The population numbered 1 million in 1949, 2 million in 198, 3 million in 197, 4 million in 1982, million in 1991, 6 million in 1998 and 7 million in 27. 1a Population and components of growth, Average annual growth rate % of immigration balance out of total growth Population at end of period (millions) Between 1948 and 27, 62% of the overall population growth resulted from natural increase, and 38% resulted from migration balance including changes in the size of the population due to changes in national borders. Since 1967, the population of Israel includes residents of East Jerusalem, and since 1982 Druze and Muslims in the Golan. 1b Immigrants, thousands, The Israeli population comprises one thousandth of the world population. It is similar to the population of Switzerland, and greater than that of Norway, Denmark, New Zealand and Finland In 1948, 82% of the Israeli population was Jewish, and almost all of the rest was Arab. In 27, 76% were Jewish, 2% were Arab, and 4% were non-arab Christians and persons of other religious denominations whose religion is not recorded in the population registry (mostly relatives of Jewish immigrants who arrived in the 199s). Jewish Israelis comprised 6% of the world s Jewish population in 1948, and 41% in 27. The share of Israeli born persons out of the total Jewish population increased from 3% in 19 to 7% in 27. Between 1949 and 27, the share of Muslims out of the total Arab population increased from 7% to 83%, the share of Christians decreased from 21% to 8%, and the share of Druze decreased from 9% to 8%. The median age of the population rose by four years from 24. in 19 to 28.7 in 27. This increase was primarily the result of a decline in fertility. The average number of births per woman decreased from 3.9 to 2.9. The share of children (aged -14) in the population decreased from 36% in 19 to 28% in 27, whereas the share of elderly persons (aged 6 and over) increased from % to 1%. However, the share of children in the Israeli population has remained higher than in any other Western country, and the share the elderly persons has remained lower c -9-4 Population, by age, percentages, 19, Along the years, the sex ratio of the population has changed. In 1948, there were 17 males per 1 females in the Jewish population. By 19, there were 13 males per 1 females in the total population. In 1978, the sex ratio balanced out, and since then, there has been a female majority. Today, there are 98 males per 1 females. 21

3 Between 197 and 26, the average age at first marriage rose by 2.6 years for grooms (from 2. to 27.6), and by 3. (from 21.7 to 24.7) years for brides d 1e Average age at first marriage, by sex, brides grooms Despite the rise in the average age at first marriage, rates of marriage have always been high in Israel. In 27, for example, only 6% of both males and females at ages 4-49 had never been married. Since the early 19s, life expectancy has risen by about 12. years for the Jewish population. Since the early 197s, life expectancy of the total population in Israel has risen by about 9 years. Life expectancy, by sex, Women Men Infant mortality rate has dropped from 36. per 1, births in the late 19s to 1.9 three decades later. During that period, the decrease in infant mortality was a major cause for the rise in life expectancy. By 27, infant mortality rate was 3.9. The population increase has been accompanied by an increase in the number of households, which rose from 766, in 197 to 2.1 million in 27. Similarly, the decline in fertility has been accompanied by a decline in the average size of households, which dropped from 3.8 persons in 197 to 3.3 in 27. The percentage of one-person households rose from 12% to 18%, and the percentage of households with seven or more members dropped from 11% to 6% respectively. 2. Geographical distribution Nurit Yaffe The population growth has been accompanied by an increase in average population density from 43 people per square kilometer in 1948, to 316 in 27. The highest density was found in the Tel Aviv District (7,73 people per sq. kilometer in 27), and the lowest density was found in the Southern District (73 people per sq. kilometer). Today, compared with European countries, Israel s population density is lower only than that of the Netherlands and Belgium a 2b Persons per square kilometer, In 27, the population was more evenly distributed between the districts than in The population of the Northern and Southern districts comprised 19% of the total population in 1948, and 31% in 27, whereas the share of the population of the Tel-Aviv, Central, and Haifa districts decreased from 71% in 1948 to 3% in 27. Population by district, %, 1948, 27 Total Jerusalem District Northern District Haifa District Central District Tel Aviv District Southern District Judea and Samaria* *Population in Jewish settlements The increase in population size of the country as a whole was accompanied by an increase in the size of the localities in Israel. In 1948, Tel Aviv-Yafo was the only city in Israel with more than 1, residents. In 27, there were 14 cities of that size, including five cities with more than 2, residents (Jerusalem, Tel Aviv-Yafo, Haifa, Rishon LeZiyyon and Ashdod)

4 3. Education Revital Cohen - Aviel Krantzler The level of education of the Israeli population has been constantly rising since World War II, as in other Westernized countries. The percentage of adults (aged 14 and over until 198, and aged 1 and over afterwards) with no schooling decreased from 16% in 1961 to 3% in 27; and the percentage of those with 13 or more years of schooling rose from 9% in 1961 to 42% in 27. In 26, the share of persons aged 2-64 with postsecondary or higher education was 46%, similar to Canada (47%) and higher than in other countries such as Japan (4%), the United States (39%), Denmark, and Finland (3%). The rise in the level of education is also reflected in the increased percentage of students in institutions of higher education out of all students 1% in 27, compared to 1% in a Students in the Education System Total thousands Percentages Kindergartens Primary Secondary Post-secondary Higher Yeshivas and Kolels Higher Education , ,2 1 Between 1991 and 27 (26/27), the number of teachers rose from 72, to 114,. Of those, the percentage of teachers with academic degrees rose from 39% to 76%, and the percentage of teachers aged and over rose from 12% to 26%. During the entire period, women comprised over 7% of all teachers. Between 199 and 27, the average class size dropped slightly from 28 to 27 students per class. School enrollment rates have risen continuously for boys and girls; the rates for girls have always been consistently higher than for boys. In 27, 94% of the boys and 97% of the girls aged were enrolled in school, compared to 86% and 92%, respectively, in 1994 (data for 27 include students in apprenticeship schools under the supervision of the Ministry of Industry, Trade and Labor). The percentage of matriculation examinees out of all graders increased from 72% in 1992 to 84% in 27; the percentage of 12 graders entitled to a matriculation certificate increased from 46% to 3%, respectively. Most of those entitled to a matriculation certificate met university entrance requirements, and were thus potential candidates for higher education. In 199, 39% of all 12 graders met these requirements, compared with 4% in 27. 1, 9, 8, 7, 6,, 4, 3, 2, 1, 12 graders entitled to a matriculation certificate who met 3b university entrance requirements, percentages, % % In 1948, there were two universities in Israel. Five universities were established in the 19s and 196s, and the Open University was established in the mid-197s. At the end of the 197s, teacher training colleges became institutions of higher education rather than post-secondary institutions. During the 199s, many academic colleges were established; in 27 there were 62 institutions of higher education. There were 28 recipients of academic degrees in 1948, and, in 27. In 27, first degree students at academic colleges, including academic colleges of education, (approximately 93,) outnumbered those enrolled in universities (approximately 76,). 3c Students in institutions of higher education, by type of institution and degree, Universities (Excl. the open 1st degree University), 1st degree 2nd degree יי Academic and teacher training colleges, 1st degree 3rd degree יי Academic and teacher training colleges, 2nd degree In 196, 31% of all first degree students were enrolled in the field of Humanities. By 27, the percentage of students enrolled in the field of Humanities decreased to 12%. Concomitantly, the percentage of students enrolled 4

5 in the field of Education rose from 2% to 17%, partly due to the academization of that profession, and the percentage of students enrolled in the field of Social Sciences rose from 21% to 31%. First degree students in institutions of higher education, 3d by field of study, percentages, 196, 27 Engineering Agriculture Natural sciences and mathematics Medicine Law Social sciences Education Humanities Labour force and wages Ruth Sehayek - Sigal Zanti In 19, there were 631, persons in the civilian labour force, and in 27 there were 2.9 million (until 198, the civilian labour force included persons aged 14 and over; since then, it includes persons aged 1 and over). Between 19 and 27, the civilian labour force grew at an average annual rate of 3%. The participation rate of men in the labour force has dropped steeply from 8% in the mid-19s, to 6% in 23. Since 23 that percentage rose and reached 62% in 27. In contrast, the participation rate of women rose steeply from 27% in the mid-19s, to 1% in 27. The participation rate in the labour force of the total population (men and women) has remained relatively stable (4% in 19, % in 1987, and 6% in 27). The share of females in the labour force almost doubled between 19 and 27 from 2% to 47% a Persons in the labour force, by sex, percentages of all persons aged 1+, The share of females out of all first degree recipients was 43% in 197, % in 1987, and 6% in 27; of all second degree recipients, the share of females was 27%, 43% and 7%, respectively; and of third degree recipients, the share of females was 13%, 33% and 1%, respectively. The rate of national expenditure on education out of the GDP has varied between the mid-196s and the early 199s, from 7.4% to 8.6%. Between 1996 and 22, the rate remained above 9.%. National expenditure on education reached a peak of 9.3% in 1997 and 22. Since 22, the rate has been dropping steadily, and in 27 it declined to 8.3% men women The rise in school enrollment among youths has been accompanied by a decline in rates of labour force participation among that population. In 196, 37% of all teenagers aged were in the labour force, compared with 9% (aged 1-17) in 27. The labour force includes employed persons (who work at least one hour a week), as well as unemployed persons. Over the years, the share of persons working full time (3 or more hours a week) has decreased from 78% in 19 to 64% in 27. From 199 to 2, the share of employed persons who worked more than hours a week increased from 18% to 2% (from 26% to 36% for men, and from % to 1% for women). Over the years, two important changes occurred in the composition of employed persons according to industry. First, the share of employed persons in agriculture has decreased from 1% in 1968, to 2% in 27. Secondly, the share of employed persons in manufacturing, electricity and water,

6 and construction has decreased from 33% in 199, to 22% in 27, whereas the share of employed persons in services has increased from 6% in 199, to 76% in 27. 4b Manufacturing Construction Trade and repairs Transport, storage and communication Business activities Public administration Education Health, welfare and social and personal services 4c Employed persons, by industry (selected), percentages, 199, Employed persons, by occupation (selected), percentages, 199, 27 Academic professionals Associate professionals and technicians Managers Sales and service workers Skilled workers With the rising level of education, there has been an increase in the share of persons employed in white-collar professions (academic professionals, associate professionals and technicians, and managers). compared with 76% to 91% among females). The highest rate of unemployment was 11.2% (in 1992), and the lowest was 2.6% (in 1973). In all years, the unemployment rate has been higher among women than among men d 4e Unemployed persons, percentages of labour force, Average wage index, at constant prices, (basis:1978) 27 Out of a total of 2.1 million households in 27, 7% had at least one employed person (73% in 1998). Of all households with at least one employed person, 44% there was only one employed person, 4% had two employed persons, and 11% had three or more employed persons in % of the households with children aged up to 17 in 27, had one or more employed persons (similar to 1998). Data on wages are calculated for employee jobs (jobs of employee workers who work at least one day a month and appear on the payroll of the establishment or institution. Jobs appearing on the payrolls of more than one establishment or institution are counted the number of times they appear). Between 198 and 27 the number of employee jobs rose from 1.3 million to 2.8 million. During that period, average wages also rose by 3%, at fixed prices (average annual growth rate of 2%). In manufacturing, wages rose by 9% (average annual growth rate of 3%), and in public services by 8% (average annual growth rate of 2%). The share of employees out of all employed persons has grown from 74% in 197, to 87% in 27. Among males, the increase has been more moderate (from 73% to 83%, Manufacturing All industries Public services 6

7 . Standard of living Yafit Alfandari - Nurit Dovrin Standard of Living of Households Since the 19s, there has been a steady rise in the standard of living of households. This process has been characterized by a decline in the share of household expenditures on products, and an increase in the share of expenditures on services. Thus, the share of expenditures on food and on clothing and footwear (products) has declined steadily since the 19s, whereas the share of expenditures on transport and communications (services) has increased. In the 19s, the largest share of household expenditure was on food (4%). Over the years, the share of expenditure on food has dropped continuously reaching 2% in the 199s, and 17% in 27. The second largest share of household expenditure in the 19s was on clothing and footwear 12% of the total expenditure. Expenditures on this item have decreased as well, to as low as 3% in 27. One of the reasons for the decline in expenditure on clothing and footwear is the drop in the prices on those items as a result of exposure to competition with imported products a trend that has accompanied the globalization process. Regarding the items on which household expenditure increased, the rise in expenditure on transport and communications was particularly significant (from % in the 19s to 21% in 27). The changes in household expenditure can be attributed to a rise in the standard of living, and specifically to an increase in rates of car ownership, as well as to the technical and communications revolutions which took place over the last three decades. The rise in standard of living and in technological advancement have been accompanied by an increase in the variety of luxury items available to households. Some of those items have become an integral part of daily life. a Household ownership of cellular phones and stationary phones, percentages, used. In the 198s, the deep-freezer was introduced in Israel. Ownership of deep freezers grew from 9% in the mid-198s to 19% by 27. Dishwashers and microwave ovens were also introduced in Israel during the 198s, and by 27 33% and 83% of the households, respectively, owned those appliances. In the mid-19s, 82% of the households in Israel owned a radio, and 13% owned a record player. Over the years, other forms of entertainment and media penetrated the market. By 27, 91% of all Israeli households owned a television, 3% owned a radio, 49% owned a DVD, and 68% subscribed to cable or satellite television. Until the 199s, telephone communication was exclusively through stationary telephone lines. By 1997, nearly every household owned a phone.. The cellular phone entered the market in the 199s, and by 27 the share of households owning at least one cellular phone reached 89%. Today, for the first time, the percentage of cellular phone owners is higher than that of stationary phone owners (84%). At the end of the 19s, 4% of all households lived in owned dwellings, and 4% lived in rented dwellings. The percentage of households living in owned dwellings rose steadily, and reached 71% by the mid-197s, whereas the percentage of households living in rented dwellings declined sharply to 2% during the same period. Since the mid-197s, the percentages of households living in owned dwellings has remained almost unchanged, whereas of the percentage of households living in rented dwellings rose to 2% by 27. Over the years, housing density in Israel has declined. The number of households with two or more persons per room has dropped from 24% in 197 to 6% in 27. By the end of the 196s, wages constituted 98% of the households gross monthly income. Over the years, this proportion has dropped to 83% in 1979/8, 77% in 21, and 78% in 27. The rise in income and standard of living has been accompanied by increased inequality in the distribution of income among households in the various deciles. The gross income of households in the upper decile constituted onefifth of the total income of households in the economy in the 19s, compared with one-third in the 2s. cellular phones stationary phones In the 19s, only 4% of all households had refrigerators, and the rest used ice boxes. Twenty years later, almost every household had a refrigerator, and iceboxes were no longer 7

8 b Distribution of gross income by quintiles, percentages Quintile (upper) Quintile 4 Quintile 3 Quintile 2 Quintile 1 standard of living of Individuals In 27, 3% of all persons aged 2 and over were satisfied (or very satisfied) with their financial situation; 3% managed to cover their monthly expenditures; 4% expected that their financial situation would improve. Of all persons aged 2 and over who worked in 27, 8% were satisfied with their work and % were satisfied with their income. In the years 22 through 27, % of the persons aged 2 and over went on holiday or trip in the country (including overnight stays away from home), and 3% went on holiday abroad at least once a year, with almost no changes from year to year. 6. THE ECONOMY Talia Shalem-Cohen - Ronen Elkayam Between 19 and 27, the Gross Domestic Product (GDP) in Israel increased at an annual average rate of %-6% at constant prices, and the GDP per capita increased at an annual average rate of 3%. By 27, the GDP per capita was six times higher than in 19. The GDP per capita increased substantially until 1972 (%- 6% per year). Between 1973 and 1984, the annual growth rate declined to 1%. Between 198 and 1996, the GDP per capita increased again by an annual average rate of 2%-3%, and in it decreased again by an annual average of 1%. In 2, which was a year of rapid economic growth, especially in the high-technology industries, the GDP per capita increased sharply by 6%. However, the growth in 2 was moderated by the second Intifada during the last quarter of the year. Between 21 and 23, the Intifada continued and the GDP per capita declined at an average annual rate of 2%. However, the period between 24 and 27 was characterized by a rapid and stable growth at an annual rate of 3%-4%. The growth during that period can be attributed primarily to intensification of national trade and the relatively calm security situation. In 27, the Gross Domestic Product per capita was about NIS 92, ($22,). 1, 9, 8, 6aGross Domestic Product per capita, 19-27, NIS at 2 prices NIS 7, 6,, 4, 3, 2, 1, Economy, total Business sector The expansion of economic activity was accompanied by a transition toward producing high-technology products and services. The share of financial and business services, communications, electricity, and electronics industries in the GDP increased to 3% in 27. Labour productivity increased at an average annual rate of 4% in The growth in the GDP was accompanied by an increase in imports of goods and services, which reached an average annual growth rate of 7% in constant prices. Thus, the total amount of available resources in Israel from domestic production and imports was 38 times higher in 27 than in 19. 8

9 The proportion of resources allocated for general government and private consumption decreased from 7% in the initial years following the establishment of the state to 6% in 27; and the proportion of resources allocated for capital formation decreased from one-third in the initial years (due to the need to raise new capital stock) to 13% in 27. In contrast, the share of exports out of all available resources increased from 3% in 19 to 3% in 27. Private consumption expenditure per capita increased at an average annual rate of 3.4% between 19 and 27. By 27, private consumption expenditure per capita was 6.9 times higher than in 19. The rise in standard of living was accompanied by a change in the composition of private consumption expenditure. On the one hand, expenditure on basic products decreased: the share of expenditure on food, drinks, and tobacco dropped from 39% in 19 to 18% in 27, and the share of expenditure on clothing, footwear, and personal items dropped from 12% to % during the same period. On the other hand, expenditure on housing, electricity, fuel, and various services (e.g., education, health, transport, entertainment, sports and domestic help) increased, as did expenditure on travel abroad. Private consumption expenditure per capita and disposable 6b income per capita, 19-27, at 2 prices NIS 7, 6,, 4, 3, 2, 1, c Defense expenditure as a percentage of the GDP, (annual average) 1-6 Private consumption expenditure per capita Disposable income per capita General government expenditure on civilian consumption i.e., educational services, health, and welfare increased at an average annual rate of % between 19 and 27, and the per capita expenditure on civilian consumption increased at an average annual rate of 2%. There was a general upward trend in defense expenditures during the first 2 years following the establishment of the state, which reached a peak in In subsequent years, defense expenditures decreased. The average annual increase in defense expenditures per capita between 19 and 27 was 2.3% The development of public services increased the tax burden. The tax rate reached 37.2% of the GDP in 27, compared to 2% during the initial years of the state. (The tax rate in 27 was similar to that of developed countries such as Canada and Germany, but lower than that of Scandinavian countries, which amounts to approximately %.) However, transfers and benefits paid to households increased from 2%- 3% of the GDP during the initial years of the state to 1%- 12% during the last 2 years d Taxes as percentage of the GDP, (annual average) e Total Residential building Industries The government debt increased from 2% of the GDP in the initial years of the state to almost 3% in between 1978 and The government debt decreased to 13% of the GDP between 199 and 1998, and to 91.7% between 1999 and 27. Gross fixed capital formation expenditures on machinery and equipment, buildings, various construction works, and transport equipment increased over the years at an average annual rate of 4.%. During the initial years following the establishment of the state, there was a considerable investment in residential construction, which constituted 48% of the total gross fixed capital formation. In contrast, 27% of the gross fixed capital formation in recent years has been in residential construction, and 73% of the gross fixed capital formation has been in industries non-residential construction, infrastructure works, machinery, equipment, and motor vehicles. Gross fixed capital formation, billions of NIS, 19-27, at 2 prices

10 7. Foreign trade Helen Brusilovsky - Bat-Sheva Fishman The changes in the volume of foreign trade since the establishment of the State reflect changes in the structure and needs of the economy. From 19 to 27 imports of goods (gross) increased from US dollars 3 million to 6,621 million, and exports of goods (gross) increased from US dollars 3 million to 4,6 million. Along the years there were fluctuations in the prices of exports and imports. Between 19 and 1972, the prices of exports increased by 22%, and the prices of imports increased by 13%. As a result, the Terms of Trade Index improved by.7%. During , the prices of fuels, which constitute a large share of all imports, increased, resulting in the worsening of the Terms of Trade Index by 9%. During , the Index improved by 2%, mostly as a result of the decrease in the prices of fuels. During this period, the prices of exports increased by 31%, in US dollars, and the prices of imports increased by 1%. During 2-27, the prices of fuels once again increased, and the Index worsened. 7a Trade per capita, millions of US dollars, Imports per capita ,94 1,423 Exports per capita ,36 2,47 4,6 6,391 Trade deficit per capita ,23 3,242,6 7,814 During 19-27, the share of consumer goods out of all imported goods dropped from 26% to 13%, and the share of investment goods decreased from 34% to 14%. The share of raw materials (including unworked diamonds and fuels) increased from 39% in 19 to a record high of 81% in 198. In 27 their share was 73%. In the early years of the State, imports from the United States constituted 48% of all imports. Over the years its share decreased, and in 27 it was 17%. The share of imports from Asian countries increased from 4% in the 19s to 21% in 27. 7b Imports by economic use, percentages, Consumer goods Raw materials Unworked diamonds Fuels Investment goods In 19, the export of agricultural products and worked diamonds made up 7% of the all exports. Over the years, exports of agricultural products decreased, and in recent years it was 2%-3%. On the other hand, the share of industrial exports (excluding diamonds) increased from 2% in the 19s to 7% (its highest share) in 21. In 27, it reached 74% of all exports. In the 19s, exports to European countries constituted 7% of Israel s exports (related to the large share of agricultural exports in those years). Following a decreasing trend, the figure reached 36% in 27, while the share of exports to American and Asian countries increased from 2% to 68%, and from 1% to 18%, respectively. Exports of diamonds to Asian countries was more than % of all exports of diamonds in recent years. 9 1

11 8. SCIENCE AND TECHNOLOGY Nava Brenner From 199 to 27, the national expenditure on civilian research and development (R&D) increased from NIS 11 billion to NIS 3 billion, at constant prices. The national expenditure on civilian R&D per capita, in terms of the Purchasing Power Parity of the Dollar, increased from $34 in 199 to $1,22 in 27. Civilian R&D is carried out by four major sectors: the business sector, the government (including local authorities and governmental institutes), higher education institutions, and nonprofit institutions. Financial support for R&D is provided by these sectors, as well as by foreign sources. Between 199 and 27, the share of R&D performed by the business sector increased from 3% to 79%, whereas the share performed by the government sector decreased from 11% to %, the share performed by higher education institutions decreased from 29% to 12%, and the share performed by nonprofit institutions decreased from 7% to 4%. The share of R&D performed by the business sector as a percentage of the GDP (3.4% in 2), and the share of R&D financed by that sector as a percentage of the GDP (3.4%) amounted to almost twice those recorded in the US, and more than three times those recorded in 1 EU countries, on average. The number of recipients of academic degrees from universities and other institutions of higher education in the fields of science and engineering more than doubled from 199 (,) to 27 (11,). The share of women out of all recipients of academic degrees from universities and other institutions of higher education in the fields of science and engineering, and their share out of all employees in R&D in the business sector, remained stable between 199 and 26 (4% and 23%, respectively). Between academic years 1991/2 and 26/7, university academic staff increased by 18%: senior staff increased by 8%, junior staff increased by 28%, and the other academic staff (mainly external teachers) increased by 36%. The number of full time employees in R&D companies in the business sector increased from 24, in 1997 to 41, in 2, decreased to 38, in and increased to 41, in 2 and to 43,9 in 26. The share of households with access to a computer grew from 34% in 1997 to 69% in 27, and the share of those with a subscription to the Internet grew from % to 9%, respectively. In 27, the share of Israeli households with access to a computer (69%) was lower than in Japan (8%). In 2, the rates in Israel and Japan were similar (about %). Korea Germany Switzerland Canada Great Britain Finland Israel Ireland France Spain Share of households with access to a computer, international 8b comparison, 2, 27 Italy Portugal a. National 8a expenditure on civilian R&D as a percentage of the GDP,

12 9. MANUFACTURING Simcha Bar-Eliezer - Lior Zisman Israeli manufacturing began to develop in the middle of the 2th century. In a census carried out in 1936 by the Jewish Agency, 1, factories, employing 28, workers, were enumerated. Some of those factories are still active, and at the end of the 199s they employed 62, workers 18% of all employees in manufacturing. From the establishment of the State in 1948 to the mid- 196s, many manufacturing establishments were set up. By 196, there were 2, manufacturing establishments in Israel. Of those establishments, about 1% were considered large (employing more than 1 persons). Notably, the data on manufacturing establishments include those that did not employ any workers besides their owners. The rise in the number of manufacturing establishments increased the demand for manpower, so that the number of persons employed in manufacturing increased from 98, in 192 (of whom 6% were employed in large establishments) to 223, in 196, (about 74% of whom were employed in large establishments). In the years that followed, there were fluctuations between periods of expansion and slowdown in manufacturing. In , there was a recession that curtailed the process of expansion in manufacturing; the subsequent period between 1968 and 1972, was characterized by economic prosperity, which was accompanied by increasing rates of export and employment. The Yom Kippur War in 1973 and the First Lebanon War in 1982, led to a prolonged economic slowdown between 1973 and 198. Afterwards, from 1986 to 199, the economy began to recover, possibly as a result of the economic stabilization program which was introduced in 198. Following the massive wave of immigration between 1991 and 199, mainly from the former Soviet Union, economic growth returned to a high level, which was maintained throughout the entire decade. Between 21 and 23, following the outbreak of the Second Intifada (Palestinian uprising) and the collapse of the NASDAQ, the manufacturing production index reached an all-time low. In 24-27, the Israeli economy has been recovering and Manufacturing has been growing Average annual change in the Manufacturing Production 9a Index, percentages, In , Manufacturing production increased by an annual average of.7%, and labor input (actual work hours) increased by an annual average of 2%. Manufacturing Production Index and Labour Input Index 9b , at 196 prices 1,4 1,3 1,2 1,1 1, Manufacturing Production Index Manufacturing production, according to technological 9c intensity, percentages, 194, 27 Total Low Technology Thereof: Food Textiles, Apparel, Leather Other Medium-Low Technology Medium-High Technology High Technology Labour Input Index Manufacturing establishments that operated in the 19s were mainly warehouses and small establishments that engaged mainly in processing agricultural products and in clothing. At present, Israeli manufacturing is modern, and is based mainly on high technology industries, which employ skilled workers with academic and technical knowledge; about 4% of the manufacturing product is exported. Manufacturing industries are divided into four groups, by technological intensity: High technology: electronics; equipment for control and supervision; computers and office machinery; aircraft; pharmaceuticals. Mediumhigh technology: refined petroleum; chemicals and chemical products (excluding pharmaceuticals), machinery; equipment and electric motors; transport equipment (excluding aircraft). Mediumlow technology: mining and quarrying, rubber and plastics, ferrous and other mineral products; jewellery. Low technology: food products; beverages and tobacco products; textiles; apparel; leather products; paper and printing; wood products; furniture. The classification is determined mainly by the share of expenditure on Research and Development out of the total output. It was adopted in recent years, and also applied retrospectively to the initial period of Manufacturing in Israel. 12

13 The major change was the decline in the share of lowtechnology industries (e.g., food, textiles, apparel, and leather products) due to the process of globalization and opening of the Israeli market to competition. In contrast, high-technology industries developed substantially, and accounted for most of the growth in Manufacturing since the 199s. 3 9d 22 Product, output, jobs, and exports, by technological intensity percentages, 196, 27 Output Product AGRICULTURE 1. AGRICULTURE Dr. Dr. Moshe Yanai, - Yaniv Sharabi During the first decade of Israel s existence, the total agricultural area increased by about 14%, and reached 3,94 thousand dunams by 197. Until the beginning of the 21st century, there were no significant changes in the country s agricultural area. Between 23 and 26, the agricultural area diminished (the data for 23 and onwards cannot be compared with previous data due to changes in the data collection method). Area of field crops, citrus fruit and vegetables, thousands of 1a dunams, , 2,7 2, 2, , 1,7 1, 1,2 7 Exports 46 Jobs 1, Low Technology Medium-High Technology Medium-Low Technology High Technology The share of medium-high and medium-low technology industries out of the total GDP, output, and jobs remained similar throughout the period from 196 to 27. However, in the low and high-technology industries, significant changes occurred during that period. The share of low-technology industries in the GDP and in the total number of jobs decreased from % to 28% on the average, and the share of high-technology industries increased from % to 3% on the average. In 19, Israel s exports totalled $3 million, of which agricultural exports were 49%, and diamonds were 26%. In 27, Israeli exports totalled $46 billion, of which 3% were agricultural exports, 74% were manufacturing exports, and 23% were unworked and polished diamonds. Over the years, manufacturing exports of high-technology products increased: in 27, exports of high-technology industries comprised 46% of all manufacturing exports. In those industries, exports comprised 74% of the output field crops citrus fruit vegetables 197 From the early 19s to the end of the 198s, the area used for growing field crops was 6% of the total agricultural area. Since 199, its share has decreased to about %. The citrus fruit industry has existed in Israel for over 1 years. From 1949 to 1966, the area of citrus plantations grew from 12, to 416, dunams, and during the two decades that followed there was no change. During those four decades, the main citrus crops were white grapefruits and Shamouti oranges, intended for export to the European market. Following increased competition and reduced profits, the area of citrus growing diminished to 163, dunams in 26. Recently, there has been a recovery in the industry, and an increase in the amount of citrus fruits planted, mainly tangerines and grapefruit. The vegetable crop area increased sharply during the first four years after the establishment of the State from 7, to 3, dunams. Between 194 and 1988, the vegetable crop area ranged from 3, to 4, dunams, and between 1989 and 26 it grew by about 6%, to 72, dunams. During the 196s and 197s, the quantities of agricultural output, as well as the input and net product of agriculture increased at moderate and similar rates. Since 198, the amount of output has increased at a much higher rate than that of input. As a result, the net domestic agricultural product

14 rose sharply, and doubled between 199 and 27. These indices reflect the trend of growing efficiency in agriculture which can be attributed, among other reasons, to a reduction in the quantities of input required for the production of the agricultural output. For instance, water consumption in agriculture did not rise from the197s to the 199s (approx. 1,24 million cubic meters), and since then it has even decreased (to 1,18 million cubic meters in 26). Output, input and net domestic product, quantity indices, 1b , at 1967/68 prices Net domestic product Input Output Up to 2, citrus fruits were the main agricultural export product. Between 1949 and 1979, the quantity of exported citrus fruits increased by % from 1, tons to 96, tons. Since 198, there has been a decline in the amount of citrus fruits exported, and in 27 it was 178, tons. Until 199, only a small quantity of potatoes was exported. Since then, there has been more than a ten-fold increase, and in 27 potato exports reached a peak of about 33, tons. The quantity of exported vegetables reached a peak of 249, tons in 27. Exports of flowers began in the 19s on a small scale; since the end of the 197s there has been an increase, and in 1998 flower exports reached a peak of 224, tons. 1cAgricultural exports, thousands of tons, Potatoes Vegetables Citrus fruit Flowers Production of livestock and livestock products increased substantially during the first decade after the establishment of the State: there was a six-fold increase in breeding of poultry for meat, and a thirteen-fold increase in breeding of cattle for meat; production of cattle milk and eggs tripled. 14 Since then, the increase in livestock and livestock products has continued, albeit at a more moderate rate the average increase in production of the various products was 1%-7% per decade. Year 1d Animal products, Fish (thousand tons) Eggs (millions) Cow s milk (million litres) Cattle for meat (thousand tons) Poultry for meat (thousand tons) , , , , ,74.2 1, * ,13.4 1, *Provisional data In 196, self-employed persons and members of kibbutzim constituted 6% and salaried employees constituted 4% of all persons employed in agriculture. During the 196s, foreign workers entered agriculture, at first from Judea and Samaria and the Gaza Area, and later from foreign countries. Over the years, the number of self-employed persons and kibbutz members working in agriculture decreased by 7%. The number of salaried employees decreased by 6% between 196 and 198, and increased by 4% since 198. In 27, foreign workers constituted 39% of all employed persons in agriculture h Employment in agriculture thousands, (Israeli employees) (Foreign workers (including from Judea and Samaria and the Gaza Area) (Self-employed Persons and Kibbutz members) The supply of calories and nutrients per capita per day increased between 19 and 26 from 2,61 to 3,643 kilocalories (an average increase of 7% per decade). The most substantial increase, of 1%, was recorded during the 199s from 3,89 kilocalories in 199, to 3,6 kilocalories in 2.

15 11. CONSTRUCTION Gershon Kun Construction, unlike most industries, is characterized by sharp fluctuations in the scope of its activity. On the one hand construction is sensitive to changes in the overall economic activities; on the other hand, fluctuations in construction usually generate fluctuations in the overall economy. Increased activity in construction was recorded during the first major wave of immigration in , during the period of intensified growth in the Israeli economy between 194 and 196, during the period of economic growth between the Six Day War and the Yom Kippur War ( ), and in the mid 199s, when a large wave of immigrants arrived in Israel from the former Soviet Union. Of the residential construction allocated for immigrant absorption, public construction was dominant. Gross fixed capital formation in construction, at constant prices, increased between 1967 and 27 at an average annual rate of 4.2%, and was 4 times higher in 27 than in a Gross fixed capital formation in construction, NIS billion, , at 2 prices Civil engineering works Non-residential construction Residential construction The share of gross fixed capital formation in construction out of the GDP dropped from 13.4% in 1996 to 8.4% in 27, a rate even lower than that recorded before the mass wave of immigrants from the former Soviet Union (8.7% in 1989). 11b Dwellings on which construction was completed, by district, thousands, Gross fixed capital formation in dwellings, the main component of gross fixed capital formation in construction, reached a peak in the annual average was NIS 36.8 billion (at 2 prices). By comparison, in NIS 27. billion (at 2 prices) were invested 27% less than in Construction area completed (for all purposes) increased from an annual average of 3.2 million square meters in to.3 million in , and reached a high of 9.3 million in In 2-27, the annual average area of construction completed was 8.1 million square meters. From to , the area of residential construction completed almost tripled from an annual average of 2.3 million square meters to 6.7 million square meters. In 27,.1 million square meters of residential construction were completed about 7% of the total construction area completed that year. The construction area completed of public buildings increased from an annual average of 32, square meters in , to 61,7 square meters in Between 19 and 27, construction of approximately two million new dwellings was completed. The largest number of new dwellings completed was in ,1, and the smallest number was in ,6. Of all dwellings on which construction was completed, the share of swellings in the Tel Aviv District decreased steadily, from 32% in to 1% in 2-27, whereas the share of dwellings in the Central District increased steadily, from 18% to 3%, respectively. The share of dwellings on which construction was completed in the Northern District was highest in the 198s, and in the Southern District in the 199s. 62% of the dwellings completed in were in private construction, and the rest were in public construction (i.e., by the Ministry of Construction and Housing, national Jerusalem D. Judea and Samaria Area Haifa D. Northern D. Tel Aviv D. Southern D. Central D. 1

16 11c Construction completed on dwellings, thousands, d Immigrants Public construction Private construction institutions, and local authorities). Dwellings built in public construction are usually located in peripheral areas and in Jerusalem, and they are relatively small, whereas dwellings built in private construction are larger and located in the central region of the country. Since 199, there has been a sharp decline in the extent of public construction, and a more moderate decline in the extent of private construction. 39% of the dwellings on which construction was completed in 27 were in buildings with 1-2 dwellings, compared to 3% in 2. Small dwellings (1-3 rooms) constituted 92% of all dwellings on which construction was completed in In subsequent years, large dwellings were built, so that the share of small dwellings out of all dwellings constructed decreased, and amounted to 17% in 2-27; 1% of the dwellings on which construction was completed in 27 had five rooms or more. In , construction of 2, kilometers of new and reconstructed roads was completed, and 4, kilometers of water, drainage and canalization pipes were installed. 198 Completion of construction and reconstruction of roads, length in km., TRANSPORT Hila Yavlovich - Tehila Klien The development of the transport infrastructure stimulates the development of a country s economy. The length of roads in Israel in the early 197s was 9,3 kilometers, and their total area was 4,7 square kilometers. Over the years, roads were lengthened and widened, and new roads were constructed. By 27, the length of the roads in Israel was 17,9 kilometers, and their total area was 144,6 square kilometers. The most extensive addition was during the 199s, when 3,3 kilometers were added to the length of the roads, and 33, square kilometers were added to their area. 12a Transport, 197, 27 Vehicles (thousands) Drivers (thousands) Kilometers traveled (billions of kilometers) Length of paved roads (thousands of kilometers) Area of paved roads (thousands of square kilometers) ,284 3, As the number of vehicles increased more than the length and area of the roads, road density also increased. 12b Transport, percentages of change, (base year 197) Length of roads Area of roads Km. traveled Vehicles Drivers 27 New roads Reconstructed roads 16 In 27, approximately NIS 8 billion were invested in transport infrastructure, more than half of it was invested in roads. In 199, NIS billion were invested, of which 8% was invested in roads (at 2 prices). The average number of kilometers traveled per year by a private car decreased from 19,3 in 197 to 16, in 27. Despite the increase in the number of vehicles per 1, residents from 22 in 19 to 31 in 27 the rate in Israel is lower than in many Western countries (i.e., about in the Netherlands, and about 8 in the US). The number of road accidents with casualties increased, with fluctuations, and reached an annual average of approximately 2, in Afterwards, the number decreased, and in the annual average was approximately 17,.

17 The annual number of people killed in road accidents increased since the establishment of the state, and reached 716 in In , the number decreased to 387. Since then, there have been fluctuations; in 27 the number of people killed in road accidents was 398 the lowest since c Persons killed in road accidents The share of public buses operating on scheduled routes out of the total number of buses has decreased, from 9% in the early 196s to 44% in 27. The annual average number of train passengers between 19 and 1989 was 3.6 million. During the 199s and in the 21 st century, programs were formulated for the development of the Israel Railways, and its budget increased. The train has become an advanced, popular mode of transportation. The number of railway passengers was12 million in 2, and in 27 a peak number of 32 million was reached. Between 199 and 27, the number of railway passengers increased by an annual average of 16%. 12d Railway passengers, millions, TOURISM Osnat Levy Taly Rosenfeld Tourist Arrivals Since the establishment of the state, there were 7 million tourist arrivals in Israel, of which 8% occurred since the 198s. The number of tourist arrivals increased from an annual average of 47, in the 19s, to 2.7 million in 2 (the year the Pope visited Israel). Along with the general upward trend, tourism to Israel has been characterized by fluctuations. Tourism declined substantially following security events in Israel, in the Middle East, and throughout the world. Afterwards, tourism recovered. Following the Second Intifada, which broke out at the end of 2, and with the intensification of terror attacks in 21, there was an ebb in tourism to Israel (.9 million in 22). Since then, there has been a steady recovery, and in 27 the number of tourist arrivals reached 2.3 million. 13a, 4, 3, 2, 1, 19 Tourist arrivals to Israel and departures abroad of Israelis, thousands, Departures abroad Tourist arrivals About 2,3 aircraft landed in Israel in 19, and about 117, passengers entered and departed from Israel in those aircraft. The number of aircraft landings at airports in Israel increased gradually over the years: in 2 about 33, aircraft landed in Israel, and the number of passengers was 9.6 million. In 21-23, following the Intifada (Palestinian Uprising) that broke out at the end of 2, the number of aircraft landings decreased sharply. Recovery began in 24, and in 27 there were 34, aircraft landings and 1.2 million passengers b Tourist Arrivals 19s 196s 197s 198s 199s 2-27 Annual average 47, 269, 772, 1.3 million 2. million 1.7 million Average annual increase, % The 19s: Following the Sinai Campaign (196), the number of tourist arrivals to Israel declined by 1%. In 198, the 1th Independence Day, the number of tourist arrivals increased by 6%. The 196s: Until 1966, the number of tourist arrivals increased at an average annual rate of 19%. In 1967, the year of the Six Day War, the number of tourist arrivals declined. After the war, the number of tourist arrivals increased by nearly %, in 1968.