ECONOMIC SURVEY
5 September 1995
(COMMUNICATED BY GPO ECONOMICS DESK)
GOVERNMENT SECTOR:
* CABINET APPROVES NIS 160 BILLION BUDGET FOR 1996.
On 27.8.95, the Government approved its 1996 budget, of NIS 160 billion,
including debt repayments. Excluding debt repayments, a NIS 133 billion
budget was approved. Budget allocations are as follows: social services
37%, offices and administration (including defense industries) 8%, defense
(including redeployment) 21%, defense debt repayment 23%, and economic
development 11%. The remainder, NIS 27 billion, will go towards debt
repayment. The Treasury expects to reduce the budget deficit to 2.5% of
the GDP, from 2.75% in 1995. The budget will equal 48.6% of the country's
GDP, compared to 49.6% in 1995.
Finance Ministry - Eli Yosef, 972-2-317201
* GAMBLING COMMISSION OPENS DELIBERATIONS.
On 3.9.95, the Gavish Commission, chaired by Moshe Gavish, former Income
Tax Commissioner and currently General Manager of Mercantile-Discount
Bank, opened deliberations to international gambling experts on the issue
of legalized gambling casinos. The commission began initial deliberations
in August, and will continue its hearings in order to make recommendations
on whether to allow legalized casinos. During the past year, a number of
international investors, from the U.S. and South Africa, have made
inquiries regarding building casinos, mentioning Eilat as the most likely
location.
Tourism Ministry - Orly Doron, 972-2-754845
MACRO-ECONOMIC SECTOR:
* INCREASE OF COMPETITIVE IMPORTS DURING 1994.
Competitive imports, which are products competing in markets where at
least 20% of the competition is locally produced, accounted for 30% of all
industrial products in 1994, the Central Bureau of Statistics announced.
In 1992, they accounted for 27%, while in 1990 competitive imports were
25% of industrial products in Israel. The CBS reported that the increase
in competitive imports was most likely due to liberalization of import
policies. Competitive imports in the food, clothing, wood, and leather
sectors all enjoyed increases in 1994 compared to 1990.
Central Bureau of Statistics - David Neumann, 972-2-6553400
* EARLY INDICATORS POINT TO INCREASE IN ECONOMIC GROWTH.
Israel's GDP grew by 4% and the business sector grew by 5%, during the
first half of 1995, at fixed prices and discounting seasonal factors,
according to initial figures released by the Central Bureau of Statistics.
During the second quarter, the GDP grew by an annual rate of 11% compared
an 5-6% annual rate recorded in the first quarter of 1995. A large part of
the growth was due to an increase in purchases of consumer goods, although
there was also a large increase in investments, the bureau reported. If
growth continues at this rate, it will surpass the forecasted 5% growth in
GDP, and business sector GDP growth of 6%.
Central Bureau of Statistics - David Neumann, 972-2-6553400
PEACE ECONOMY:
* PRIME MINISTER'S CONFERENCE ON PEACE TOURISM OPENS TODAY.
The Prime Minister's Conference on Peace Tourism opens in Tel Aviv, today,
5.9.95. A press conference with Prime Minister Rabin and Tourism Minister
Uzi Baram is scheduled for 6.9.95 at 19:15, Binyanei Ha'ooma, Jerusalem.
More than 300 representatives from over 30 countries will participate in
the conference, which will review trends in international tourism, tourism
investment opportunities, and cultural and religious tourism, the Tourism
Ministry reported. Among the guests are the President of the Egyptian
Travel Agents Association, the Chairman of TWA, the President/CEO of Royal
Jordanian Airlines, and the Chairman/CEO of Hilton International.
Tourism Ministry - Orly Doron, 972-2-754845
FOREIGN TRADE:
* RADA ELECTRONIC INDUSTRIES RECEIVES CONTRACT WORTH $14 MILLION FROM
ROYAL NETHERLANDS AIR FORCE.
Rada, which develops, produces, and sells advanced electronic equipment
for the aviation market, reported on 5.9.95 that it had received a
contract worth $14 million from the Royal Netherlands Air Force. Rada will
supply its Fatigue Autonomous Combat Maneuvers Evaluation System which
enables the recording and analysis of structural and engine fatigue to
improve flight safety and cut maintenance, the company reported.
Rada - Haim Nissenson, 972-9-542182
DELEGATIONS:
* AUSTRALIAN TRADE DELEGATION TO VISIT BEGINNING 10.9.95.
A 35 member trade delegation from Australia and New Zealand will visit
Israel as guests of Trade and Industry Minister Micha Harish next week.
The delegation will be led by David Mortimer, President of the Australian
shipping company TNT, which is examining establishing its regional base in
Israel. The banking, telecommunications, paper, and irrigation sectors
will also be represented.
Industry and Trade Ministry 9 Avital Ber, 972-2-220340
TELECOMMUNICATIONS SECTOR:
* AUREC, SOUTHWESTERN BELL (SBC), STET, AND GLOBESCOM CONSORTIUM TO BID
FOR INTERNATIONAL PHONE TENDER.
Aurec, U.S.-based Southwestern Bell, Italy's Stet, and Globescom, a
Monitin Communications-Eliezer Fishman company, officially became the
second consortium to announce that it will bid to become one of two new
international telephone operators to compete against Bezeq. The
Communications Ministry is expected to release the tender for two new
international telephone operators by the end of the month. Other groups
expected to bid for the service include Clalcom and Matav of Israel,
Sprint, Deutsche Telekom, and France Telecom; and Tadiran Telecom, Idan
and Darcom of Israel with British
Telecom. (Ma'ariv, 5.9.95)