ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
Jerusalem, 4 July 1994
NEWS ITEMS:
* OUTSTANDING EXPORTERS CHOSEN FOR ANNUAL AWARDS.
RAD Data Communications received the nation's Outstanding Exporter for
1993 award, presented by President Ezer Weizman and Industry and Trade
Minister Micha Harish during a festive ceremony at the President's house
today (4.7.94). RAD Data, located in Tel Aviv and privately owned by the
Zisopal family, is one of 11 exporters from all aspects of the economy
chosen to receive export awards. Others receiving awards include
Unitrol-Amcor, producers of shower accessories; Opal Technologies, makers
of semi-conductor inspection equipment; Al-Ba'ad from Moshav Massuot
Yitzhak, producers of disposable towelettes; Netafim-Magal, producers of
irrigation equipment, Naot Footwear, makers of shoes and sandals; Tango, a
member of the Kitan Group, producers of Levi's products under license;
Adipaz Israel Gold Jewelry, Lorenzi Diamonds; wine and spirits producers
Carmel Mizrachi; Eran Enat Buying Office in Tel Aviv which links foreign
firm buyers to local firms; and Scitex, the Herziliya-based pre-press
printing technology giant.
Industry and Trade Ministry - Avital Ber, 02-220340
* PRESIDENT WEIZMAN CRITICIZES ECONOMIC POLICYMAKERS.
In his speech to the Export Prize awardees, President Ezer Weizman
critiqued the current infighting among economic policymakers which has
pitted the industrialists and the Finance Ministry against the Bank of
Israel. Weizman said that the current atmosphere of distrust among
policymakers has caused the Israeli public to be more scared of the
current situation than they need to be. Weizman spoke of the great
benefits exports are reaping for the country and how something should be
done to stabilize the public's mood, especially regarding the stock
exchange.
President's spokeswoman - Batya Keinan, (02)-707231
* ISRAEL AIRCRAFT TOPS LIST OF FOREIGN RECIPIENTS OF US DEPARTMENT OF
DEFENSE R&D CONTRACTS IN 1993.
Israel Aircraft Industries was the highest ranking foreign firm on the US
DOD's research and development contract list for 1993. IAI, a government
owned company, was listed in the 55th position, at $71 million, and was
the only foreign firm to break the top 100 barrier. Other Israeli
suppliers on the list included Wales Ltd. at 365th position and $4.07
million; Tadiran Electronics at 391st position with $3.48 million; and
Soreq Nuclear Research Facility at 399th position with $3.34 million.
Israel Aircraft Industries - Doron Suslik, (03)-9358514
GOVERNMENT SECTOR:
* STATISTICS SHOW A SLOWDOWN IN THE ECONOMY DURING MARCH, APRIL AND MAY.
The Bank of Israel and the Central Bureau of Statistics released figures
showing that exports, industrial production, and tourism receipts fell,
thereby erasing gains made earlier in the year. Exports, excluding
diamonds, fell 15.1%, whereas imports of machinery and equipment fell by
45.4%. Concurrently, imports of consumer goods rose 37.3% and trade
imports, excluding diamonds, petroleum, planes and ships, rose by 4.4%.
Tourism receipts fell by 16.3% whereas hotel occupancy rates fell 26%.
Industrial production dropped 6.3% (during the first two months of the
year it increased 15.2%), while sales of cement (an indicator of
construction growth) decreased 49.1% after falling 70.2% in January and
February. Retail trade moved up 4.2% as compared to 35.1% during the
year's first two months.
Central Bureau of Statistics - David Neuman, (02)-553400
PEACE ECONOMY:
* TRADE OUTLOOK WITH JORDAN: NOT IN LARGE AMOUNTS.
Trade with Jordan will not amount to a great deal for Israel for the first
five or so years of an open border, according to a number of professors
who delivered papers at a conference on Economic Aspects of the Peace
Process. According to their studies, the structure of the Jordanian
economy does not allow for the use and importation of a great deal of
value added products from Israel, though Israel does hold an advantage
since some of its products will replace Jordanian imports from
geographically distant sources. Israel could see a drop in production in a
number of its industries, such as cement and steel processing and possibly
in Dead Sea Chemical production, as a result of Jordan's cheaper labor and
social costs. A Bank of Israel economist commented that a policy of trade
creation rather than trade aversion should be carried out with Jordan via
a trade agreement in order to create symmetry between Israel, the
Palestinians, and Jordan.
Pinchas Sapir Center, Hebrew University - (02)-883130
FOREIGN TRADE:
* SHIPPING LINE BETWEEN CHINA AND ISRAEL OPENS.
Today (4.7.94) a maritime shipping line officially opened with the arrival
of the Chinese container ship Zhounga at the Haifa Port. The Chinese ship
is from the Cosco Shipping firm whose Israeli agent is Carmel
International Shipping Services. (Ha'aretz, 4.7.94)
* KOREA'S SAMSUNG INTERESTED IN ACQUIRING ISRAELI TECHNOLOGY AND KNOW-HOW.
Late last month a group of Samsung officials visited Israel on a
fact-finding mission, meeting with a number of high tech firms in an
effort to examine technologies for acquisition. Over the next few weeks,
another three economic groups are expected to visit to examine other
deals. (Ma'ariv, 4.7.94)
DELEGATIONS:
* PORTUGUESE BUSINESS DELEGATION VISITS.
A delegation representing a number of Portugal's leading firms are
currently visiting in order to promote economic and R&D cooperation
between the Iberian country and Israel. The Portuguese companies in the
fields of textiles, construction materials, furniture, and footwear will
also be meeting with Palestinian firms from the West Bank and Gaza.
Portuguese Embassy - 03-6956361
* ETHIOPIAN BUSINESS DELEGATION VISITS.
An official government and business trade mission from Ethiopia is
currently visiting in order to renew business contacts between Ethiopia
and Israel. On Tuesday 4.7.94 an open exhibition for developing these
relationships will be held at the Israel Export Institute in Tel Aviv (29
Hamered Street). The Ethiopian delegation is being led by the vice
minister of Trade H.E. Abdella Basha.
Embassy of Ethiopia - Mr. Berhane, 03-5250383