Foreign investment in Israel totaled $7.31 billion in January-August 2005, more than the $7.22 billion invested in 2004 as a whole....Foreign direct investment was $4.2 billion in January-August, 2.5 times the $1.66 billion invested in 2004 as a whole.
These numbers are part of the success story of the Netanyahu reforms. They illustrate that even minor improvements in economic freedom can lead to extraordinary improvements.
Direct foreign investment is up at an annualized rate of 380% this year. I believe this is the key indicator for future economic performance given Israel's size and isolation. It is investment in tangible assets such as factories and machines, as opposed to financial instruments such as stocks which demonstrate much less commitment and which do not directly lead to productivity gains. Productivity is the economic magic bullet because it drives real income increases for individuals and economic power for nations.
It is difficult to comprehend the enormity of the concept of exponential growth, but perhaps this example will help. If this rate of increase were to continue, it would take less than nine years for all of the current direct foreign investment in the world to be invested in Israel. At eleven years, it would consume all of the economic output of every nation on the planet.
Netanyahu: A Potentially Historic Leader
Bibi's Likud primary victory is terrific news. He has the potential to be a historic leader in terms of his rare talent and ideological comprehension. Of the three critical areas in Israeli politics, he has already been Israel's best leader in two. As Amb
Weblog: IRIS Blog Tracked: Dec 20, 05:06
Israel's Economy Grows 5.2% in 2005
Credit for the extraordinary growth to Netanyahu's structural reforms. See this must-read post for details: Netanyahu Economic Revolution Far Greater than Reported
Israel Permits Convicted Mass Murderer to Run Campa
Weblog: IRIS Blog Tracked: Jan 03, 05:26
Foreign Investment in Israel Up 67% in 2005
Credit Netanyahu for the continuing excellent economic news due to his structural reforms. See this must-read post for context
Gunmen Shoot Up PA Interior Minister's House in Ramallah
Two Palestinian Rock
Weblog: IRIS Blog Tracked: Jan 13, 18:02
Public Sector Shakedown
A must-read by Evelyn Gordon to understand that the central problems that afflict the Israeli people are primarily economic assaults from self-proclaimed "champions of the poor." It explains why Netanyahu, with his faults, is by far the best candidate for
Weblog: IRIS Blog Tracked: Jan 20, 15:59
Bush Shows Israel the Way Forward
These words from President Bush's speech last night should be said by an Israeli Prime Minister:
In a time of testing, we cannot find security by abandoning our commitments and retreating within our borders. If we were to leave these vicious attackers