(Yoram Ettinger, Jerusalem- via email).
1. London Economist (January 2010): Israel's 2009 economic performance, in
face of global meltdown, suggests impressive growth in 2010. Israel's GDP
grew in 2009 by 0.5%, compared to an average 3.5% decline in OECD countries:
US - 2.5% decline, Japan - 6.5% decline, Germany - 4.9% decline, Britain -
4.7% decline, Italy - 4.8% decline, Ireland - 7.5% decline, etc. The
Economist projects a 3.7% growth for Israel's 2010 economy and less than 7%
unemployment (7.7% in 2009), compared with a 2.4% OECD growth and 8.8% OECD
unemployment. Israel's inflation is projected to be 1.7%, compared to 3% in
2009 and OECD's inflation of 1.2% (1.3% in 2009).
Morgan Stanley raises growth forecast for Israel to 3.7%, beyond Bank of
Israel's forecast of 3.5% (Globes, Jan. 18, 2010).
Israel's Central Bureau of Statistics (ICBS) reported (Israel Hayom daily,
Jan. 1, 2010) a 2.9% budget deficit (% of GDP), which is higher than the
0.8% of 2008, but dramatically lower than most Western economies, some of
which exceeded 10%. The ICBS also reported a 6.5BN trade balance surplus, a
75% increase in the Tel Aviv Stock Exchange and a 1.3% decline of GDP per
capita, compared with a 2.2% increase in 2008.
2. Israel's high-tech holding its own. The number of Israeli high-tech
companies, which enticed investment, remained high (447 compared with 483 in
2008), attesting to the attraction of Israel to venture capitalists. The
volume of dollar invested decreased significantly, as a result of drying
investment resources and lower market valuations: $1.1BN in 2009, in
comparison with $2BN - 2008, $1.8BN - 2007, $1.6BN - 2006, $1.3BN - 2005,
$1.5BN - 2004 and $1BN in 2003 (Ma'ariv, Jan. 19).
3. Microsoft expands R&D operations in Israel, adding a few scores of
employees to the 600 currently employed (Globes, Jan. 6).
4. Merger & Acquisition of Israeli companies persist. DVTel acquired
Israel's Ioimage for $80MN in stock (Globes, Jan. 13). DotHill acquired
Israel's Cloverleaf for $113MN (Globes, Jan. 6).
5. Overseas VC investment in Israel. China's $1BN Zhejiang Sanhua invested
$9.5MN in Israel's Heliofocus (Globes, Jan. 6). Europe's FilVest, which
specializes in bio-med investment, led a $12MN round of private placement by
Israel's Endogen - FilVest's first investment in Israel (Globes, Jan. 11).
Oracle, Pennsylvania's Susquehanna Growth Equity, Silicon Valley's Hyperion,
Boston's Battery Ventures and Briatain's Stage One Ventures co-led a $10MN
round of private placement by Israel's cVidia (Globes, Jan. 15). invested
$9MN in Israel's Wisair (Globes, Jan. 12). Sequoia Capital participated in a
$3MN fourth round by Israel's SunRad (Globes, Jan. 19). Virginia Life
Sciences Investments led a $3MN seoncd round of private placement by
Israel's Cupron n(Globes, Jan. 20).
