Apr. 28, 2016
Israel’s Economic Prospects – Ilan Evyatar
Israel’s economic prospects are looking a whole lot better than Europe’s and that of most member countries of the OECD, says Adam Reuter, CEO of risk management firm Financial Immunities. Looking forward, Israel has an “enormous demographic advantage.” The 34 OECD member states have an average median age of 42 while Israel’s median age is 31. In the crucial 20-34 age group the OECD is set for a 14% drop, while Israel is headed for a 28% gain.
Other areas where Israel has an edge include its technological advantage – Israel is among only eight countries that launch satellites into space; Israel is the world leader in R&D employees per capita and first in business expenditure on R&D, first in cyber security and second in scientific research. Then comes Israel’s global edge – its export-oriented focus; generations of immigrants from around the world with their knowledge of cultures and languages and global networks of connections.
Israel is also undergoing revolutions in three major fields: water, where Israel now has a surplus due to investment in desalinization; energy, where Israel is set to achieve independence and to become a gas exporter; and transportation, where massive investment is bringing the periphery closer to the center. Moreover, while the world is experiencing a net loss of jobs due to automation, Israel’s hi-tech