Israel's economy in 2012: did the recession affect her?

A few days ago, a reader asked me to look into the Israeli economy, to see if this past year had impacted it more than other countries. Of all the world's nations, Israel had been consistently in the top echelon of nations that were growing in many different sectors, irrespective of the downtown. 2012, especially the latter half, saw a slight change in that.

The Israeli economy is slowing, but not as much as the rest of the world. Here is the news from the last week:

CBS report: Israeli economy declining
Gad Lior, Published: 12.26.12, 15:16 / Israel Business
Figures released by Central Bureau of Statistics point to slowdown in nearly all industries in August through October. Bank of Israel sees similar trend

"The Central Bureau of Statistics has released a negative report pointing to a decline in the Israeli economy. The few positive figures included in the report are still worse than in previous months. The figures reveal that the total export of services fell by 4.5% in October, amounting to just $2.2 billion, following a lower drop of 1.8% in September. The export of business services dropped 8.4% compared to the previous month, with revenues from tourism falling by 2.5%. It should be noted that the data are seasonally adjusted, considering the fact that some of the High Holidays took place in October. Without the seasonal adjustment, the declines would have been sharper. A 2.9% drop was recorded in industrial production in August through October, excluding the high-tech industry. The entire industry, including high-tech, registered a 3.5% increase."

"A sharp 4.6% decline was recorded in the proceeds from sales to the local market of Israel's industrial factories. The same period also saw a 0.4% drop in the number of hired workers' jobs in the manufacturing industry and a sharp 2.7% drop in the number of working hours in industrial factories. Things are not looking good in terms of the proceeds of all industries either. Although August through October saw a 3.3% increase in the income according to an annual calculation, May to July recorded a double increase of 6.5%."


GDP expanded 3.3% last year in slowest annual pace since 2009

The Israeli economy grew in 2012 at its lowest rate since the economic crisis of 2009, the Central Bureau of Statistics reported yesterday, citing preliminary figures.

"Israeli GDP grew only 3.3% in 2012, after two years of higher growth: 4.6% in 2011 and 5% in 2010. In 2009, which was a difficult year for the global economy, Israeli GDP grew only 1.1%"

The article above presents a graph, and you know how much I love graphs, but they also can be used to skew the data or alter the reader's perception. Here is the graph:

GDP low rate growth
Though the tag "Netanyahu's government" makes the graph seem like the blip in the economy is his fault, I think recovery in 2009 from the negative to ABOVE where the economy was in 2005 is astounding. We've all become used to the downturn, recession whatever the economists are calling it today. But the fact is, the 2008 crash was a global failure that tanked whole nation's economies (Iceland...Ireland...).

Germany is called the engine of the European Union's economy. So let's compare Germany's GDP before the crash and afterwards to Israel's. Click to enlarge--

You can clearly see Israel is far ahead, even in these dark days.

However, the prophecies indicate that no matter what happens in the near term, Israel will be abundantly rich in the future. So rich, the alliance recorded in Ezekiel 38-39 makes Israel's further neighbors jealous. (Ezekiel 38:13).

In recent years, Israel has discovered huge oil, shale, gold, and gas reserves. It won't take long for Israel to begin extracting, producing and then exporting. I wrote about some of that, here.

I'd said,

"Remember this promise of blessing from Deuteronomy 33:19 -"They will summon peoples to the mountain and there offer sacrifices of righteousness; they will feast on the abundance of the seas, on the treasures hidden in the sand." God gave Israel treasures, among them, riches under the sea and under the sand. Matthew Henry Commentary says that this prayer is a prophecy, that they would keep His favor and that the tribes shall always receive the earthly blessings that the Lord had bestowed on them: including what was under the sea and under the sand."

No matter what the economic forecasters say, this is what God has said about Israel:

"Remember the former things of old, for I am God, and there is no other; I am God, and there is none like Me, declaring the end from the beginning, and from ancient times things that are not yet done, saying, "My counsel shall stand, and I will do all My pleasure." . . . Listen to Me, you stubborn-hearted, who are far from righteousness: I bring My righteousness near, it shall not be far off; My salvation shall not linger. And I will place salvation in Zion, for Israel My glory." (Isaiah 46:9-10, 12-13).

No matter what, God has blessed Israel with the promise of salvation. There is no greater treasure.