Israeli export 15K times greater than in 1948
Central Bureau of Statistics, Israel Export Institute say nation's export totaled $90 billion in 2011 compared to $6 million in 1948, noting growth of 1,400,000%
Israel's exports today are 15,000 times greater than they were at the time of Israel's inception in 1948, the Israeli Export Institute said in a report released Thursday for Independence Day.
Current Israeli exports per capita are 173 times greater than they were 64 years ago.
According to the institute's data, in 1948 Israeli exports totaled $6 millions. In 2011 Israeli exports grew to $90 billion – a growth of 1,400,000%. The IEI qualified its data, noting the impact of fluctuating population growth, inflation and changing in purchase power. But even with all these factors together, the growth factor is still phenomenal.
The data also showed that exports shrunk only five times in the past 64 years: In 1982, during the first Lebanon war and the inflation crisis, in 1988 over the Intifada, during the 1991 Gulf War, during the 2001 dot.com crisis in Israel and the United States, and during the 2009 global credit crunch.
Changing trade partners
Israel signed its first trade agreement with Hungary in January 1949. Today, Israel is party to free trade agreements with 39 countries, including the US and all EU countries.
Since 1948 and until the 1970's Britain was the primary export destination for Israeli goods. The US claimed the top spot in the 70s and has remained the primary target market for Israeli export to this day. During the 1970's, Iran too was one of the 10 most important export destinations for Israeli goods.
Since Israel's inception, exports have not only grown steadily, but the entire economic activity has improved as well. Over the past 64 years the nation's gross domestic product (GDP) grew by 500% - more than many other countries but les than the export per capita.
IEI Chairman Ramzi Gabay said that exports serve as the primary growth engine for economy in the small Israeli market.
Many analysts attribute Israel's remarkable growth to the human factor – the high level of education, knowledge, work ethics and entrepreneurship. "In the long run, the human capital is the most important growth engine, and the Jewish human capital is one of the highest in the world," Prof. Natan Zusman form the Hebrew University, explained.
War as a growth engine
An additional important factor in the Israel's economic growth over the years was the nation's wars and the constant need for technological advancement.
The Israeli military industry now cradles many leading industries, military and civilian, including hi-tech, textile and even diamond polishing workshops.
Another important factor is the government's policy that favors industry and entrepreneurship for many years. "In the past, when someone wanted to build something new – they let him do it without many questions. I know this have faults as well as advantages, but in the past 15 years the bureaucracy and eroding investment in education is harming the growth," said Gabay.
