ECONOMIC SURVEY
26 January 1995
(COMMUNICATED BY GPO ECONOMICS DESK)
PRIVATIZATION:
* SHOHAT HOPES THAT THE BRODET COMMISSION WILL MAKE A FAVORABLE
RECOMMENDATION ON PRIVATIZING GOVERNMENT COMPANIES BY DISTRIBUTING OPTIONS
TO THE PUBLIC.
On 25.01.95, Finance Minister Avraham Shohat said that he hoped a
committee headed by Finance Ministry Director-General David Brodet would
recommend that privatization of the banks and government-owned companies
could continue through the distribution of options to the general public.
Shohat formed the Brodet Commission earlier this autumn following a
slowing down in the pace of privatization to investigate new methods of
privatizing firms. The Brodet Commission is scheduled to announce its
recommendations in February.
Finance Ministry - Eli Yosef 972-2-317201
MACRO-ECONOMIC SECTOR:
* BANK HAPOALIM'S 1995 OUTLOOK FOR PUBLICLY TRADED COMPANIES.
Bank Hapoalim's research department has issued a report on its view of
publicly traded companies on the Tel Aviv Stock Exchange. According to the
bank, producers of food products, real estate leasing companies, and large
retail concerns will be the most profitable in 1995. Sectors including
computers and software, building construction products, insurance, and
small holding or investment companies characterized by intense
competition will see a continued erosion in profitability.
Bank Hapoalim - Sharon Gefen 972-3-5674379
* FIRST COMPREHENSIVE REPORT ON PUBLIC SECTOR WAGES AND SALARIES SUBMITTED
TO KNESSET.
Yossi Kuchik, the newly appointed Wage Director in the Finance Ministry,
submitted a report on the situation of the public sector's wages and
salaries to the Knesset on 24.01.95. According to Kuchik's report based
on questionnaires sent to public sector bodies 40% of those groups
which reported to the Ministry had some type of wage deviation. Of the 650
groups which were asked to report, including municipalities, the Bank of
Israel, universities, and the Broadcasting Authority, 490 representing
220,000 workers reported. This is the first time a report of this type has
been issued by the Finance Ministry, according to Kuchik, who said that
future reports will be more comprehensive, and will help the Ministry in
negotiating future wage disputes with public sector workers.
Finance Ministry - Eli Yosef 972-2-317201
FOREIGN TRADE:
* FOREIGN TRADE DEFICIT FOCUSED ON TRADE WITH EUROPEAN UNION.
The Central Bureau of Statistics reported that the rise in the trade
deficit (excluding diamonds) with the EU was the prime component, with a
deficit of $1.3 billion, of the total $1.5 billion increase in the trade
deficit during 1994. The total trade deficit with Europe in 1994,
excluding diamonds, was $5.3 billion, while Israel's total trade deficit,
excluding diamonds, was $7.7 billion, a $1.5 billion increase over that of
1993. Israel's trade deficit with the United States was $870 million, an
increase of $370 million over the year before. The CBS noted that the
largest increases in trade imbalances with Europe were with Italy, with a
rise of $290 million, Germany, with a rise of $280 million, and France,
with a rise of $215 million. Israel showed a positive balance of trade
with countries from the former Eastern Bloc, and with the nations of
Oceania.
Central Bureau of Statistics - David Neumann 972-2-553400
DELEGATIONS:
* SWISS BANK CORPORATION DELEGATION VISITS ISRAEL.
Executives from London-based Swiss Bank Corporation led by the CEO Dr.
Rudolph Bonni, visited Israel this week to examine business opportunities.
The group will be represented in Israel by the Clal Issuing, a member of
the Clal Group's capital markets sector. Swiss Bank Corporation will issue
Israeli stocks on European markets especially companies being
privatized in mergers and acquisitions, and in related services to
multi-nationals investing in local stocks.
(Ha'aretz,19.1.95, p. 10G)