ECONOMIC SURVEY - 15-Jun-95

15 June 1995

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* INDUSTRIAL EXPORTS DOWN BY 4.9% DURING MAY.
Industrial exports fell by 4.9% during May to $1.008 billion compared to the same month in 1994, the Industry and Trade Ministry reported. If diamond exports are included, total exports fell by 3.1% compared to the same period in 1994. For the first five months of 1995, industrial exports rose by 7.6% to $4.73 billion, the Ministry reported. This rise was propelled by an increase in exports of plastics and rubber, metals, and electrical equipment which all rose more than 35% respectively during the first five months of 1995.
Industry and Trade Ministry - Avital Bar, 972-2-220340

* VALUE OF AGRICULTURAL PRODUCE IN JUDEA AND SAMARIA 14% OF TOTAL ISRAELI AGRICULTURAL PRODUCTION.
Agricultural production in Judea and Samaria, excluding autonomous regions, was NIS 1.3 billion in 1994, equal to 14% of Israel's total agricultural production. Olive production, whose value was NIS 248 million, equalled 18% of Judea and Samaria's agricultural production in 1994. During the year, production of livestock and livestock- related products increased, while vegetable and fruit production dropped in Judea and Samaria.
Central Bureau of Statistics - David Neumann, 972-2-6553400

FOREIGN TRADE:

* EUROPEAN UNION FOREIGN MINISTERS REJECT ISRAELI OFFER TO INITIAL FREE TRADE AREA TREATY.
The Forum of European Union Foreign Ministers rejected Israel's offer to initial the newly negotiated Free Trade Area during their meeting ending 13.6.95. Last week, the Cabinet agreed to initial the document provided the EU agree to a number of conditions requesting further negotiations in a number of trade spheres. According to French Foreign Minister Herve de Charette, a number of technical issues remain outstanding for further negotiations before the two sides can initial the agreement. Natti Tamir, from Israel's embassy in Brussels, reported that the EU would reopen negotiations before the end of the month. (Globes, 14.6.95)

DEFENSE INDUSTRIES SECTOR:

* FRANCE TO ACQUIRE UNMANNED AERIAL VEHICLE FROM ISRAEL AIRCRAFT INDUSTRIES.
French Defense Minister Charles Millon told Prime Minister Rabin at the Paris Air Show that France was positively interested in acquiring a number of UAV systems from IAI. Israel Radio (13.6.95) reported France was to purchase UAV systems in order to further strengthen commercial and defense relations between the two nations. (Ma'ariv, 13.6.95).

GOVERNMENT SECTOR:

* 1995-96: THE YEAR OF SMALL BUSINESS.
1995-96 has been proclaimed the year of small business by Prime Minister Yitzhak Rabin in order to bring more notice to the small business sector. During the year, the Industry and Trade Ministry will hold various events to highlight services and benefits for small businesses.
Industry and Trade Ministry - Avital Bar, 972-2-220340

TOURISM:

* 17% INCREASE IN TOURISM FROM BEGINNING OF 1995.
The number of tourists who entered Israel during the first five months of 1995 increased by 17% to 883,100, according to the Central Bureau of Statistics. Visitors arriving by land increased by 62% to 193,200, during the period. If seasonal factors are exempted, the number of tourists arriving by air rose by 4%, during the first five months of the year.
Central Bureau of Statistics - David Neumann, 972-2-6553400

TRANSPORTATION: