ECONOMIC SURVEY - 27-Apr-95

(COMMUNICATED BY GPO ECONOMICS DESK) 27 April 1995

PEACE ECONOMY:

* JOINT ISRAEL-JORDAN AIRPORT PROJECT RECEIVES GRANT AT JORDAN VALLEY INTERNATIONAL CONFERENCE.
A proposal for creating a joint Israeli-Jordanian airport in the Eilat- Aqaba area was awarded a $500,000 grant from the US Trade and Development Agency, at an international symposium sponsored by the US agency. The grant will process in a procedure by which the selection process for a US contractor will begin next week with the goal of selecting a contractor within two months.

Foreign Ministry Danny Shek, (02)-303343

* 500 ISRAEL BOND LEADERS TO MEET WITH KING HUSSEIN.
500 business leaders involved in Israel Bonds now in Israel for a week, will visit King Hussein at his palace in Amman, Jordan on 30.4.95. The Bonds organization noted that this is the first time an Israel Bonds group of this stature and size has visited the King in Jordan. The group has also met with Government ministers, including the Prime Minister, and the ministers responsible for economic policy.

Israel Bonds Eli Laniado, (03)-5177977

MACRO-ECONOMIC NEWS:

* ECONOMIC GROWTH REPORTED DURING FIRST QUARTER, THOUGH AT SLOWER PACE THAN PRIOR QUARTER.
The Bank of Israel reported that the ecoonomy grew during the first quarter of 1995, though at a slower pace than in 1994's fourth quarter. From its quarterly survey of 650 companies in various sectors, the Bank found that the building industry was continuing to grow, while the hotel industry showed no change, and the communications and transportation industries saw slight growth. The Bank reported that large and medium-sized companies reported growth while small firms reported a slowdown. The Bank also reported that the retail industry showed growth, although it reported growth primarily in the area of sales by credit.

Bank of Israel Ohad Bar-Efrat, (02)-552712

* RETAIL SALES INCREASE BY 16% DURING FIRST QUARTER OF 1995.
Retail sales grew by over 16% during the first quarter of 1995, the Central Bureau of Statistics reported. This follows a decline in 1994's fourth quarter retail sales of 12%. The CBS reported that chain store sales comprises 25% of the value of all private consumption in the economy, and 30% of all of the food sales.

Central Bureau of Statistics David Neumann, (02)-553400

FOREIGN TRADE:

* BRITAIN'S CABLE AND WIRELESS ACQUIRES 4.7% OF BEZEK.
Britain's Cable and Wireless telecommunications concern bought approximately 4.7% of Bezek's equity in a direct acquisition, according to Globes. Cable and Wireless, which has not confirmed its role, made the acquisition through the British investment bank BZW, which bought the shares from Bank Hapoalim and Bank Leumi Provident funds, for almost NIS 200 million. (Globes, 25.4.95)

* 30% INCREASE IN EXPORTS OF CITRUS FRUITS FOR THE 1994-95 SEASON.
Exports of citrus fruits increased by 30% during the 1994-95 season, the Citrus Board reported this week. The Board announced that during the season, Israel exported 22 million boxes of citrus fruit, compared to 15 million boxes during the prior season. The Board reported exports of 7 million boxes of shamouti oranges, compared to between 4-5 million boxes during the previous season, and 1.8 million boxes of valencia orange exports were up from between 600-700 million boxes during the prior season. Israel primarily exports citrus fruits were to England, Scandinavia, Japan, and France. The Board also reported that citrus exports to the CIS states grew by several percentage points. Israelis, on average, consumed approximately 30 kilograms of citrus during the 1994-95 season.

Citrus Board Yael Shamir, (03)-6968070

* TAIWAN AND ISRAEL SIGN ECONOMIC COOPERATION AGREEMENT.
Yossi Snir, Director-General of the Industry and Trade Ministry and Lee Shu-Joi, Deputy Economic Minister of Taiwan, signed an agreement on 25.4.95, agreeing to cooperate in R&D investment projects, encourage joint ventures between both countries' private sectors, organize trade visits, encourage Taiwanese investments in Israel, share data bases, and create a committee to study other trade issues between the two countries. Lee Shu- Joi is leading a 14 member trade delegation visiting various Middle East states.

Industry and Trade Ministry Avital Ber, (02)-220340

TOURISM:

* INCREASE OF 3% IN NUMBER OF ISRAELIS WHO TRAVELLED ABROAD IN 1994.
The Central Bureau of Statistics reported that Israelis made 1.84 million trips abroad in 1994, a record and a 3% increase from the year before. The nations most frequently visited, based on a survey of those 15 years and older leaving from Ben Gurion Airport, were Turkey-20%, USA-18%, France-9%, United Kingdom-9%, and Germany-4%.