ECONOMIC SURVEY
(COMMUNICATED BY THE GPO ECONOMICS DESK)
11 May 1995
MACRO-ECONOMIC SECTOR:
* TRADE DEFICIT RISES 30% DURING FIRST QUARTER OF 1995 COMPARED TO SAME
PERIOD IN 1994; TRADE DEFICIT TO PASS $10 BILLION AT ANNUAL RATE.
Israel's trade deficit for the first three months of the year was $3.5
billion, 30% higher than the $2.69 billion trade deficit in the first
quarter of 1994, the Central Bureau of Statistics reported. At this rate
of annual increase, the CBS reported, Israel's trade deficit will reach
$10.2 billion at the end of 1995 compared to $7.33 billion at the end of
1994. During the quarter, increases were recorded in the following
imports home electrical products, 31%; vehicles, 14%; food and clothing,
21%, petroleum, 34%, machinery and equipment, 12%, and steel and iron,
39%. Total imports for the first quarter of 1995 came to $9.11 billion
compared to exports for the quarter of $5.6 billion.
Central Bureau of Statistics - David Neumann, 972-2-553400
* $2.6 BILLION IN FOREIGN CURRENCY ENTERED ISRAEL DURING FIRST QUARTER IN
COMPARISON, $2.3 BILLION IN FOREIGN CURRENCY CAME INTO ISRAEL DURING ALL
OF 1994.
$2.6 billion in foreign currency entered Israel during the first quarter
of 1995. Most of increase was reported to be from requests for foreign
currency credit by Israeli residents from local banks, the Bank of Israel
reported. A majority of these requests were made during January and
February due to the Bank of Israel's monetary policy of keeping the
shekel's interest rate high. Israel's foreign currency reserves at the
end of the first quarter were $9 billion, compared to $6.8 billion at the
end of 1994.
Bank of Israel - Ohad Bar-Efrat, 972-2-552712
PEACE ECONOMY:
* ISRAEL AND JORDAN CLOSE TO SIGNING TRADE AGREEMENT.
Israel and Jordan are close to signing trade, transportation, and
environmental agreements, and only have to complete negotiations over the
language of the trade agreement, according to Zohar Peri, Director of the
Industry and Trade Ministry's Foreign Trade Administration and the head
negotiator for the trade agreement. The agreements were to have been
signed on 8.5.95, in Tiberias; however, the Jordanian delegation
requested more time to review the text of the agreements. The Ministry
expects the agreement to be signed within a short time.
Industry and Trade Ministry - Avital Bar, 972-2-220340
* ISRAEL AND JORDAN TO CONDUCT JOINT SURVEY OF RAILROAD PROJECTS.
Transportation Minister Israel Kessar announced, on 8.5.95, that Israel
and Jordan are cooperating on a survey on the state of the railroad
networks between their Dead Sea factories and the port cities of Haifa,
Ashdod, Eilat, and Aqaba. The survey will also examine the possibility of
constructing a rail line between Jordan's second largest city, Irbid, and
Haifa. Kessar made the announcement in preparation for a railroad
development conference to be held in Paris next week. Kessar said he will
be at the Paris conference in order to obtain support for the projects
and examine financing possibilities.
Transportation Ministry - Eli Dannon, 972-2-319690
COMMUNICATIONS SECTOR:
* PORTABLE SATELLITE COMMUNICATIONS TELEPHONE DEVELOPED AT RAFAEL.
A lightweight, portable, Inmarsat-M satellite telephone called the
Bipsaphone has been developed by Carcom Carry Communications, a
subsidiary of Rafael. The civilian use telephone carries voice, fax and
data communications, weighs 5 kilograms, and is the size of a PC
notebook, according to Carcom. A number of the units are currently
undergoing tests at Beta sites for Mobile Satellite Products in New York,
a subsidiary of California Microwave. Carcom is a Rafael subsidiary
established to turn Rafael developed military technologies into civilian
products.
Carcom - Haya Tal, 972-4-794951
FOREIGN TRADE:
* SAMI BUREKAS INDUSTRIES TO SELL BUREKAS IN BULGARIA.
Sami Burekas, one of Israel's leading producer of baked goods, has
announced plans to acquire a factory in Bulgaria, and to provide
knowledge and equipment to the factory for producing burekas, one of
Bulgaria's favorite foods. Sami Burekas chairman Yitzhak Alkolombri will
visit Bulgaria at the end of the month in order to complete negotiations
for acquiring 26% of the factory for $500,000. Sami Burekas will have an
option to increase its equity in the factory to 51%.
Sami Burekas Industries - Yitzhak Alkolombri, 972-3-5511155
* SHIPPING AND LOGISTICS EXECUTIVES TO OMAN FOR SEMINAR.
A group of Israeli corporate executives involved in shipping and
logistics will travel to Oman in June for a professional seminar on
Oman's potential as a shipping station for Israeli goods shipped to Asia
and the Far East. The delegation will also meet with government
officials, and representatives of the Omani business community. The
seminar is being sponsored by the Israel Export Institute.
Israel Export Institute Ruth Ovnat, 972-3-5101331
TOURISM:
* US WHOLESALE TRAVEL ORGANIZERS CONFERENCE IN ISRAEL.
Israel is the site of the 1995 USTOA (United States Travel Operators
Association) conference, the Tourism Ministry announced. The conference,
in which 25 wholesale tour operators are participating, will highlight
Israel in an effort to persuade the tour operators to include Israel as a
destination for their groups. The conference, being held this week in
Jerusalem, is the first time the USTOA has held its conference outside of
the United States.
Tourism Ministry Orly Doron, 972-2-754967