ECONOMIC SURVEY - 13-Dec-96

13 December 1996

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* BALANCE OF PAYMENTS DEFICIT REACHES $4.7 BILLION FOR FIRST THREE QUARTERS OF 1996.
Israel's balance of payments deficit rose to $4.7 billion during the first nine months of 1996, as compared to $3.5 billion during the same period in 1995, the Central Bureau of Statistics reported. During the period, Israel's foreign debts rose by $1.8 billion to $46.6 billion while foreign assets in Israel fell by $1.6 billion to $25.3 billion, putting Israel's net foreign debt at $21.3 billion.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* INDUSTRIALISTS EXPECT FLAT EXPORTS AND DECREASE IN LOCAL SALES FOR FOURTH QUARTER.
Industrialists expect that local sales will fall and export sales will not rise during the fourth quarter of 1996, according to a survey of 210 factories by the Manufacturers Association. The study, conducted in early October showed that 38% of the factories were reporting drops in sales while 41% were reporting a drop in local orders. Sharp drops were reported in the metal, and plastic and rubber sectors. In the survey, 31% were reporting a drop in export sales compared to 33% reporting an increase in exports.
Manufacturers Association - Danny Laish, 972-3-5198875

* TOURISM HOTELS REVENUES REACHED NIS 2.9 BILLION IN FIRST NINE MONTHS OF 1996.
The productivity of hotels involved in the tourism sector reached NIS 2.9 billion during the first nine months of 1996, the Central Bureau of Statistics reported. This is a 10% increase over the same period in 1995, and when inflation is figured, the increase was only between 1-2%. The revenues are also inclusive of other hotel activities such as sports centers, space rentals, and family and social events. Approximately 48% of the revenues were in foreign currency, at about the same level as the year before.
Central Bureau of Statistics - David Neumann, 972-2-6553400

GOVERNMENT SECTOR:

* COMMISSION ESTABLISHED TO STUDY SECONDARY MORTGAGE MARKET.
The Finance Ministry, in following with recommendations of the Brodet Commission, has set up a commission to examine the issues of establishing a secondary mortgage market in Israel. Its report is expected in three months. The commission will be headed by the Accountant General Shai Talmon and will included senior officials from the Finance and Housing Ministries, as well as from the Bank of Israel. The commission will look into establishing a market in order to widen the range of financial resources within the economy. As such, the commission will use the secondary mortgage market that exists in the United States as its prime example.
Finance Ministry - Eli Yosef, 972-2-5317201

PEACE ECONOMICS:

* ISRAEL-JORDAN SIGN TRANSPORTATION AGREEMENT FOR DOOR-TO-DOOR SERVICE.
On 02.12.96, representatives from the Israel-Jordan Security and Border- Crossings Committee, within the framework of the Transportation Committee, signed an agreement to create a new mechanism for transferring goods between trucks at the Jordan-Israel border. The agreement allows for the "door-to-door" system to be implemented instead of the "back-to-back" system which had been in use until now. The new system will substantially reduce the amount of time it takes to transfer goods across the border. The agreement will go into effect on 01.01.97. Another section of the agreement will also allow fuel to be transferred from Jordan to the Palestinian Authority via the "door-to-door" method. This section goes into effect today, 12.12.96.
Foreign Ministry - Danny Shek, 972-2-5303343

PRIVATE SECTOR: