1. The Israeli Economy International Perspective February 2013 Ministry of Finance A comparison of recent economic developments in Israel and the developed world, 2009- 2012. * Based on the available data. In the absence of data for the Euro Area, OECD data are presented.

2. 2 GDP Growth Rate 2009-2012 The cumulative GDP growth rate, in real terms. Source: OECD.

3. 3 GDP Per Capita Growth Rate 2009-2012 The cumulative GDP per capita growth rate, in real terms. Source: IMF, calculated by the MoF Economics and Research Department.

4. Investments’ growth Rate 2009-2012 The cumulative fixed capital formation growth rate, in real terms. Source: OECD. 4

5. Exports’ Growth Rate 2009-2011 The cumulative export of goods & services growth rate, in real terms. Source: OECD. 5

6. 6 The Average General Government Deficit, 2009-2012 The general government includes local authorities, the national insurance institute and other public entities. Source: OECD, Israeli Central Bureau of Statistics

7. 7 Changes in the Debt to GDP Ratio 2009-2012 Percentage points change in the debt to GDP ratio. Source: OECD.

8. Israeli Government’s Bonds Yield 2008-2012 8 Yield rates of Israeli government bonds, by coin issued. Source: Bloomberg.

9. CountryCurrent RatingRating Change Austria 1AA+ Belgium 1AA France 1AA+ Germany 0AAA= Greece 12CC Ireland 4BBB+ Israel +A+A+ Italy 3BBB+ Japan 1A The Netherlands -1AAA Portugal 5BB Spain 5BBB+ Sweden 0AAA= United Kingdom -1AAA United States 1AA+ S&P Credit rating Israel and select OECD countries 9 An arrow represents upgrading (green) or downgrading (red) by one notch. An orange arrow represents a negative outlook. Source: S&P

10. The Israeli Labor Force International Comparison * Based on the available data. In the absence of data for the Euro Area, OECD data is presented.

11. 11 Change in the number of employees 2009-2012 The cumulative change in the number of employees, ages 15+ Source: OECD

12. 12 The Unemployment Rate 2008-2012 Source: Eurostat, OECD, CBS. In January 2013 the unemployment rate in Israel was 6.5%, compared to 11.9% in the Euro Area Euro AreaIsrael

13. 13 Changes in The Unemployment Rate 2009-2012 Percentage points changes in the unemployment rate, ages 15+ Source: OECD

14. 14 Youth Unemployment 2012 Source: OECD.

15. 15 Changes in Youth Unemployment 2009-2012 Percentage points Changes. Source: OECD.

16. 16 Changes in The Participation Rate 2009-2012 Percentage points changes in participation rate, ages 25-64. Source: OECD.

17. 17 Participation Rate 2008-2012 Participation rate, ages 25-64. Source: OECD.

18. 18 Inequality in Israel 2007-2011 Gini index for income inequality. Source: The Israeli National Insurance Institute.

19. 19 Private Consumption Growth Rate (Standard of Living) 2009-2011 The cumulative Private Consumption growth rate. Source: OECD, calculations by the MoF Economics and Research Department.