preface

14
THE ISRAELI ECONOMY IN 2010
Compared to 2009, stock trading in 2010 was extremely dynamic, with
turnovers close to the record levels of 2007. In addition, activities in the
primary market increased, after having stagnated for two years.
Consequently, 17 new companies were able to raise US $850 million in
initial public offerings. The daily bonds turnover, amounting to
approximately NIS 3.3 billion in 2010, was 20% lower compared with
the corresponding period in 2009.
2009 was marked by unusually sharp corporate bond price increases
resulting in a 19% gain of the debt market in 2010. In addition, the
private sector took advantage of the low interest rates to raise US $10.5
billion, similar to the amount raised in the previous year.
By the end of the year, around 418 index products were traded on TASE
as the market for exchange-traded index products experienced a
continuous growth. In parallel, the market value of public holdings of
Exchange Trade Notes rose, reaching around US $14 billion, as opposed
to US$ 12 billion at the end of 2009.
1.3. FORECAST OF ECONOMIC DEVELOPMENT IN 2011
The main sources for the following table are publications of the Ministry of
Finance, Bank of Israel and commercial banks.
Annual Change in 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Inflation -1.9% 1.2% 2.4% -0.1% 3.4% 3.8% 3.9% 2.7% 2.6%
Devaluation vs. US$ -7.6% -1.6% 6.8% -8.2% 22.7% -0.9% 0.7% 4.0% -0.7%
GDP 1.2% 4.4% 5.2% 5.0% 5.3% 4.2% 0.8% 4.5% 3.9%
GDP per capita -0.5% 2.6% 3.4% 3.1% 3.5% 3.0% -1.1% 2.7% 3.4%
Investment in fixed
assets
-1.5% -0.2% 2.9% 6.1% 11.4% 4.1% -5.8% 9.9% 6.1%
Unemployment 10.7% 10.4% 9.0% 8.6% 6.6% 6.1% 7.4% 7.0% 6.7%
Export 8.1% 17.4% 7.5% 9.5% 8.6% 5.9% -12.5% 12.6% 7.4%
Import 3.5% 11.8% 1.6% 3.8% 12.8% 2.4% -14.1% 11.5% 9.2%
Public Consumption 1.0% -2.4% 2.7% 2.2% 3.0% 3.2% 2.5% 3.7% 2.9%
Private Consumption 2.0% 5.0% 3.4% 4.6% 7.2% 3.9% 1.7% 4.7% 4.3%
Housing Starts -4.9% -4.9% 7.1% -3.7% -1.3% 6.1% 6.0% 9.9% 1.4%
* Forecast for 2011.
BDO Israel