ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
July 8, 1996
GOVERNMENT SECTOR:
* PROFESSOR LEO LEDERMAN APPOINTED SENIOR DIRECTOR AT BANK OF ISRAEL.
Tel Aviv University Professor of Economics Dr. Leo Lederman has been
appointed a senior director and head of the research department at the
Bank of Israel. He replaces Dr. Avi Ben-Bassat and Dr. Leora Meridor.
Prof. Lederman, who received his doctorate from the University of Chicago
(as did Bank of Israel Governor Prof. Frenkel), specializes in the study
of inflation, economic growth patterns, capital markets, foreign trade
and balance of payments, and fiscal and monetary policies.
Bank of Israel - Ohad Bar-Efrat, 02-6552712
* BUDGET IMPLEMENTATION OVERSIGHT COMMITTEE ESTABLISHED.
Finance Minister Dan Meridor has announced the establishment of a special
committee to oversee implementation of the state budget. The committee
will meet monthly in order to strengthen the government's ability to meet
its budgetary obligations. Representatives from the Prime Minister's
Office, the Finance Ministry, and the Bank of Israel will be included on
the committee.
Finance Ministry - Eli Yosef, 02-317201
MACRO-ECONOMIC SECTOR:
* 10% OF NEW IMMIGRANTS UNEMPLOYED.
The unemployment rate among new immigrants was 10% during the first
quarter of 1996, the Central Bureau of Statistics reported. Broken down,
the unemployment rate those actively seeking work was 8% for men
and 12% for women. For those who immigrated in 1995 the rate was 13%, for
those who arrived in 1994 and 1993 the rate was 14%, for those who
arrived in 1992 the rate was 11%, and for those from 1991 and 1990 the
rate was 9%.
Central Bureau of Statistics - David Neumann, 02-6553400
* IMPORT AND EXPORT PRICES DECLINE DURING FIRST QUARTER OF 1996.
Prices of imports, excluding diamonds and fuel, fell by 2.3%, and prices
of exports, excluding diamonds, fell by 0.6% during the first quarter of
1996, compared to the same period in 1995, the Central Bureau of
Statistics reported. During the second half of 1995, both export and
import prices were stable, though during the first quarter import prices
were up by 3.5% and during the second quarter up by 4.5%. During the
first quarter, imports, at constant prices and seasonally adjusted, rose
by 4.7%, while exports, at constant prices, rose by 0.8%.
Central Bureau of Statistics - David Neumann, 02-6553400
FOREIGN TRADE:
* U.S. ROBOTICS TO PURCHASE SCORPIO FOR $80 MILLION.
U.S. Robotics, a leading producer of computer modems, reported it has
signed an agreement to fully acquire Israel's Scorpio for $80 million.
Scorpio, founded three years ago, develops, produces, and markets
switching and channelling equipment for communications networks. Scorpio
will become a subsidiary of U.S. Robotics and continue operations in
Israel.
(Globes, 3.7.96, p.1)
COMMUNICATIONS:
* ADVERTISING EXPENDITURES INCREASE BY 8.1% IN 1995 TO $817.7 MILLION.
Advertising expenditures in Israel increased by 8.1% to $817.7 million in
1995, according to the Advertisers Association of Israel. The
organization tracks advertisements in television, radio, print media,
movie theaters, and outdoor billboards. The largest increase during the
year was seen on television, which grew by 43% to increase its share in
the advertising pie to 23%, up from 17% in 1994. Outdoor billboard
advertising fell by 6.8% to 7.6% of total advertising, while advertising
in print media rose by 8.3% to 63.6% of total advertising. Radio
advertising rose by 49.5% to 5.6% of total advertising.
Advertisers Association of Israel - Yair Feldman, 03-5615310
PRIVATIZATION:
* NAPHTHA SOLD TO J.O.E.L. JERUSALEM OIL EXPLORATION.
The government sold its remaining holdings (21.53%) in Naphtha Israel
Petroleum Company to JOEL Jerusalem Oil Exploration for NIS 52 million on
3.7.96. JOEL paid an immediate NIS 25 million and will pay the remaining
NIS 27 million in November 1996. Naphtha is involved in exploration,
development, and the supply of oil and gas. JOEL was one of five groups
which competed for acquiring Naphtha's shares. The concern's market value
when it was sold was NIS 112 million, and JOEL paid 5% more than the
market value for the government's shares. Before this deal, JOEL already
held 43% of Naphtha's shares, with an added 14% worth of warrants.
Finance Ministry - Eli Yosef, 02-317201
TOURISM SECTOR:
* TOURIST OVERNIGHT STAYS DOWN DUE TO TERRORISM AND OPERATION GRAPES OF
WRATH.
Though overall overnight stays in hotels rose by 7% during the first five
months of 1996, a steep drop was recorded by hotels in the wake of the
February and March terrorist attacks and April's Operation "Grapes of
Wrath" on the northern border, according to the Central Bureau of
Statistics. While a rise of 26% was recorded in hotel overnights in
January and February, as compared to the same period in 1995, an increase
of only 9% was recorded in March, while a decrease in overnight stays of
4- 5% was recorded in April and May. The Bureau reported that the drop in
overnight stays by tourists was moderated by an increase in hotel visits
by Israelis in March, April, and May.
Central Bureau of Statistics - David Neumann, 02-6553400