ECONOMIC SURVEY - 04-Dec-96

4 December 1996

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* STANDARD & POOR'S MAINTAINS ISRAELS "A-" INTERNATIONAL CREDIT RATING.
Standard & Poor's, the international credit rating firm, reported on 2.12.96 that it was maintaining Israel's "A-" international credit rating. The announcement comes before Israel's next tranche offering of approximately $200 million on the Eurobonds market expected to occur next week. S&P reported that among its considerations for its rating, was the government's intentions to decrease the budget deficit.
Finance Ministry - Eli Yosef, 972-2-317201

* IMPORTS OF MOST DURABLE GOODS FALL IN NOVEMBER.
Imports of most durable goods items fell during November, the Finance Ministry reported. November imports of automobiles were down by 19.4%, of washing machines by 18.5%, of television sets by 16.4%, of video machines by 10.8%, and of dishwashers by 16.7%. Refrigerator imports however, were up during the month by 24.8%. For the first eleven months of 1996, automobile and refrigerator imports were down, by 0.9% and 3.4%, respectively.
Finance Ministry - Eli Yosef, 972-2-317201

* SEPTEMBER-OCTOBER ECONOMIC INDICATORS SHOW GROWTH IN EXPORTS AND INVESTMENT INPUT IMPORTS.
The Central Bureau of Statistics reported that exports of goods rose at an annual rate of 20% during October following increases of 18%, in annual terms, during September and 14%, in annual terms, during August, The import of investment inputs (equipment, vehicles, and machinery) also rose during August-October, the bureau reported. The industrial production index rose by 5-6%, at annual rate, during July-September, as compared to an annual rate of increase of 3-4% during March-June.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* FOREIGN CURRENCY RESERVES FALL BY $414 MILLION TO $11.26 BILLION IN NOVEMBER.
Israel's foreign currency reserves fell by $414 million to $11.26 billion in November, the Bank of Israel reported. The decrease was primarily due to the government's withdrawal of foreign currency to repay its overseas obligations.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712

GOVERNMENT SECTOR:

* GOVERNMENT BUDGET DEFICIT REACHES OVER NIS 10.8 BILLION SINCE BEGINNING OF 1996.
The government's budget deficit for November was NIS 881 million, bringing the year's total budget deficit, so far, to NIS 10.88 billion. The budget deficit planned for 1996 was expected to be NIS 7.60 billion.
Finance Ministry - Eli Yosef, 972-2-5317201

PEACE ECONOMICS SECTOR:

* ISRAEL AND JORDAN DELEGATIONS MEET TO IMPROVE CURRENT TRADE AGREEMENT.
Delegations from Israel and Jordan met on 2.12.96 in order to negotiate improvements to the current trade agreement between the two countries which would enable the Finance Ministers of Israel and Jordan to take substantive moves in their meeting scheduled for Wednesday, 4.12.96. The areas under discussion include improving computation of customs breaks for the Jordanians, extension of customs breaks to additional products not included in the original list, and further customs reductions on various products.
Industry and Trade Ministry - Haya Peri, 972-2-6220340

* JORDAN-ISRAEL TOURISM WORKING GROUP MEETS.
On 27.11.96, the joint Israel-Jordan Tourism Working Group met for the first time in Israel. During the meeting, it was agreed that the joint marketing activities between the two sides in third countries would include seminars and meetings for both wholesale and retail tourism elements, advertising in trade journals, and continuing joint press conferences with Jordan and Israel's Tourism Ministers at important tourism conferences. The discussions took place between representatives from the public and private sectors.
Tourism Ministry - Orly Doron, 972-2-6754845

PRIVATE SECTOR: