Last month, we presented evidence of the incredible growth of the Israeli economy and the emergence of anew high-tech industry. This month, we continue to document the growing economic prosperity of Israel, a condition that someday will no doubt become the “spoil” which attracts an invading northern power.
Buy Israel
Over a year ago, Forbes magazine, a leading American business periodical, pointed their subscribers toward Israel, advising that an investment in Israel would be a wise move. Forbes noted that during 1991, shares in the 28 Israeli companies most widely traded in the United States rose by an average of 150% (Forbes, Jan. 20, 1992). This startling growth is all the more remarkable when we realize that part of it occurred during the Gulf War. In 1992, the same 28 companies experienced an increase in their share prices of an additional 50%.
High tech
As noted last month, the growth in the Israeli economy has been driven by the emergence of the profitable high-tech industry. Leading the way in this segment have been computer software companies.
The Robinson-Humphrey Company notes that the influx of well educated and highly skilled immigrants from the former Soviet Union created a more enticing labor force in Israel. Today, Israel has more than 120 software houses and 12,000 computer specialists — the largest number of software developers per capita in the world.
Organizations like Aryt Optronics Industries Ltd. benefit greatly from this situation. Aryt designs and manufactures sophisticated optical lenses and electro-optical systems. Proprietary software systems have helped Aryt become the world leader in military, medical and civilian applications in this field. Their products are used in night vision systems, thermal guided missiles, forward looking infrared systems and diamond machining equipment.
Laser Industries is an Israeli-based leading designer, manufacturer and marketer of CO2 surgical laser systems and accessories used for free hand surgery and microsurgery.
Vishay Inter technology is an international manufacturer of electronic and optical instruments used for precise measurement applications. There products are used in making precision electronic components, specialized computers and defense systems.
High finance
Companies such as these have helped make the Israeli stock market one of the most profitable in the world. For 1992, “The Israeli stock exchange was first among the world stock markets when it attained a profit of more than 70% on average in US dollar terms. It was followed by the Mexican stock market with a 30% rise, Hong Kong with 22%, Sweden with 14% and the US with 5%” (Dispatch from Jerusalem 1st Q, 1993).
More recently, Merrill Lynch has just set up a mutual fund to help individuals invest in Israeli companies. The $150 million fund was started in April and is open to investors in Europe and the US. This helps small investors have access to the Israeli growth potential.
Israeli economic growth
Tourism to Israel is at an all-time high. The Israel Ministry of Tourism announced that during 1992, tourism to Israel topped 2,750,000 visitors, an all-time record.
Since 1990, Israel has led the industrial world in the rate of economic growth. In 1991 Israel’s gross national product (GNP) grew by 5.9%, in 1992 by 6.4% and is estimated to grow by 9% in 1993. In 1992, the growth rates in GNP were 2.1% in the US, 1.3% in Germany, 1.8% in Japan and 0.4% in the UK.
Furthermore, Israel has finally learned to control its once rampant inflation. Just nine years ago, the inflation rate in Israel was running at close to 400% per year. In 1992, the rate was a livable 18% and is expected to drop to 9% in 1993.
As a result, the new Israeli shekel has basically stabilized in value against the major hard currencies. The following chart illustrates the point.
| Shekel foreign Exchange Rates NIS per hand currency |
| Jan 92 Apr 92 Apr 93 |
| US Dollar 2.28 2.42 2.68 |
| Cdn Dollar 1.97 2.03 2.26 |
| Pnd Dollar 4.27 4.31 4.78 |
Population increase
The rate in the growth of the population base is only outpaced by that of the economy. The Central Bureau of Statistics reports that: “At the start of 1993, Israel’s population stood at 5,192,000, up 2.6% from a year ago. The actual increase was 133,000 people of which 77,000 were new immigrants.” The Bureau estimates that, in 1993, an additional 110,000 new immigrants will arrive. Judging from the past, it is anticipated that these new immigrants will become productive citizens within two to four years.
As we await our Lord Jesus Christ, we look to the promised land and God’s people as a sure sign that his return is indeed imminent. We are encouraged about the growth of the economy and the increase in “spoils” that is accumulating. More than likely, we are now seeing what is in mind when the merchants of Tarshish and all the young lions protest, “Art thou come to take a spoil?…to take a great spoil?”
The Origin of the Organic World – Part One