Israel's economy is doing quite well, thank you

From The Marker:

Treasury officials are preparing bullish new estimates for economic growth this year as data coming in for the final part of 2014 and early 2015 show growth rebounding at a faster pace than anyone predicted just a few months earlier.

A final estimate is still being calculated, but Finance Ministry officials said they are now expecting Israel’s gross domestic product to expand 3.5% this year. That would mean a much faster pace of growth than the 2.8% officials were talking about last summer when they provided the first estimate ahead of the 2015 budget.

Behind the new optimism is preliminary data for the fourth quarter of 2014, which showed GDP surging ahead at a 7.2% annual rate, it fastest since the first quarter of 2008. That raised growth for all of 2014 to 2.9%.

Meantime, Israel’s unemployment rate fell to 5.9% last year from 6.2% in 2013 even as the percentage of the working age population grew to a very high 64.2%. The economy bounced back quickly from the effect of last summer’s Gaza war while a weaker shekel has been spurring higher exports, mainly to North America and Asia.

Cisco and other high tech legends are bullish on Israel:

With the opening of Amazon’s research and development center in Israel this year, each of these Internet giants [Apple, Google, Facebook] now has an R&D presence in the country. But it is the veteran technology company Cisco that most varied activity here. In addition to an R&D center that employs about 1,800 workers, it established in 1998, Cisco has acquired 10 Israeli startups for a total of more than $1.5 billion. In addition, it has invested in close to 25 others, not including its acquisition of NDS – which was long past the startup stage when Cisco bought it and had changed hands several times before the acquisition – for $5 billion three years ago.

Intel also chose Israeli technology for 3D chips.

Trade with China is growing exponentially:

Trade between Israel and China has been steadily increasing in the last three years, with trade doubling between 2010 and 2014. Trade in 2010 was about $5 billion, with Israeli exports to China amounting to $1 billion. 2014 fared better than 2013. In 2014, trade value approached $11 billion and I think Israeli exports to China accounted for nearly 30 percent of that amount. While it's a positive development it's nothing compared to the potential of the Chinese market. China also invested $300 million in Israeli high technology in 2014.

Even Ha'aretz' business column says that Palestinian boycotts of Israeli goods are only hurting themselves.

In Europe and America, politically engaged college students, performance artists and cooperative-grocery-store activists – the kind of people who form the core of the global boycott, divestment and sanctions, or BDS, movement – may find it personally gratifying to swear off Israel. It costs them nothing: none are likely to have ever knowingly bought an Israeli product, held shares in an Israeli company or been invited to Israel to perform or exhibit. They can take the politically correct stand by signing a petition or voting on a resolution at no personal cost.

That’s not the case for the Palestinians, who depend on Israel for goods, services and employment. By one estimate, 70% of the processed food Palestinians consume comes from Israel, so boycotting even some products entails a huge personal sacrifice.

And to what avail? Only about 3% of Israeli food sales come from the West Bank, and most of that is for basic, low-margin products. The CEOs of Israeli food companies won’t be lobbying Prime Minister Benjamin Netanyahu to transfer the Palestinian tax receipts he has frozen, which is the ostensible reason for the boycott.