ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
11 April 1995
MACRO-ECONOMIC NEWS:
* TOTAL TRADE DEFICIT INCREASES BY 50% IN FIRST QUARTER OF 1995.
Israel's total trade deficit rose by 50% during the first quarter of 1995
to reach $2.69 billion compared to $1.8 billion during the corresponding
period in 1994, the Central Bureau of Statistics reported. The seasonally
adjusted monthly average trade deficit, measured without including
diamonds, planes, and fuel, came to $670 million for the first three
months of the year. During the fourth quarter of 1994, this figure was
$530 million, while during the first quarter of 1994, the average monthly
trade deficit was $430 million.
Central Bureau of Statistics - David Neumann, 972-2-553400
* 2% REDUCTION IN EXPORTS, 7% INCREASE IN IMPORTS DURING FIRST QUARTER OF
1995.
Total imports for the first quarter of 1995 were $6.95 billion, up 7% from
the final quarter of 1995, which itself rose 10% from the quarter before,
the Central Bureau of Statistics reported. Total exports for the first
three months of the year was $4.25 billion, down from $4.52 billion during
the last quarter of 1994. According to the CBS, industrial exports
constituted 69% of all exports, 23% were diamond imports, 6% were
agricultural exports, and the rest were primarily software exports during
March. Industrial input imports rose by 8.5% during the first quarter of
the year, following a 7% increase during the last quarter of 1994. Imports
of consumer goods rose by 14% during the quarter, following an increase of
6.5% during the final quarter of 1994.
Central Bureau of Statistics - David Neumann, 972-2-553400
PEACE ECONOMY:
* PALESTINIAN AUTHORITY BUDGET DEFICIT IS $135 MILLION IN A BUDGET OF $440
MILLION; DONOR NATIONS WILL LIKELY FUND MORE CURRENT ACCOUNT EXPENDITURES.
Finance Ministry Director-General David Brodet reported that, in a meeting
of the Ad Hoc Liaison Committee for the Palestinian Authority's Budget
last week in Washington, D.C., representatives of the donor countries and
the Palestinian Authority discussed how to finance, as well as reduce the
Palestinian Authority's budget deficit of $135 million. Brodet said that
following the meeting he was optimistic that the donor countries would be
willing to make greater commitments to fund current account expenditures
at their next meeting, which will take place on 28.4.95. Brodet said that
the budget deficit was due to the hiring of more than the agreed number of
police personnel, the raising of a number of Palestinian Authority
salaries, and the hiring of more workers for the Palestinian Authority.
Brodet said that despite security difficulties and the operational
problems of the Palestinian Authority, Israel is continuing to implement
the Paris and Cairo Accords.
Finance Ministry - Eli Yosef, 972-2-317201
PRIVATIZATION:
* GOVERNMENT PLANS TO RECEIVE APPROXIMATELY $1.5 BILLION FROM
PRIVATIZATION IN 1995.
Finance Ministry Director General David Brodet said that the Government
expects to receive close to $1.5 billion in revenue from the privatization
of government owned companies and banks in 1995. Brodet said that the
revenues would come from the sales of government shares in Israel
Chemicals, Bank Hapoalim, Zim, and possibly Bezeq during the year.
Finance Ministry - Eli Yosef, 972-2-317201
BUSINESS SECTOR:
* BEZEQ RANKED LARGEST COMPANY BY DUN & BRADSTREET.
Bezeq, the national telecommunications company, was rated the largest
company in Israel's economy in 1994, according to ratings released by
business information firm, Dun & Bradstreet (Israel). D&B reported that
Bezeq's sales in 1994, were $1.988 billion, more than the $1.82 billion in
sales of the Israel Electric Corporation. The other top 10 companies in
the economy in descending order are National Oil Refineries, Tnuva, Israel
Aircraft Industries, Zim, Paz, El Al, Tadiran, and Elbit.
Dun & Bradstreet (Israel) - Doron Daphna, 972-3-5103355
AGRICULTURE:
* AGRICULTURE MINISTRY PREPARING FOR LOCUST INVASION.
The Agriculture Ministry announced that its plant protection division is
in a state of alert regarding a possible locust invasion. Shmuel Elhanan,
manager of the Ministry's plant protection services division, announced
the alert due to a mass of locusts located approximately 600 kilometers
from the border of Israel, in Saudi Arabia. Elhanan noted that though the
chances of the locust's reaching Israel are slight, the Ministry still
feels it should take precautions. The last time Israel suffered an
invasion of locusts was in 1962.
Agriculture Ministry - Ronny Hassid, 972-3-6971749
FOREIGN TRADE:
* FINANCE MINISTER SHOHAT SIGNS ECONOMIC COOPERATION AGREEMENTS WHILE
VISITING CHINA.
Finance Minister Avraham Shohat, currently on a 10 day trip to China,
signed an economic cooperation and investment protection agreement and an
agreement to extend $150 million in credit to Israeli companies investing
in China, with China's Foreign Trade Minister Wu Yi. The purpose of the
agreements, according to the Ministry, is to encourage closer economic
ties between the two countries.
Finance Ministry -
Eli Yosef, 972-2-317201