ECONOMIC SURVEY - 13-Mar-96

13 March 1996

(Communicated by GPO Economics Desk)

MACRO-ECONOMIC SECTOR:

* APARTMENT BUILDING STARTS UP 44% IN 1995.
Apartment building starts were up 44% in 1995, to 62,600, compared to 43,600 in 1994, the Central Bureau of Statistics reported. Apartment building starts were higher at the beginning of the year than they were at its end: 20,200 during the first quarter, compared to 12,000 in the last quarter. Apartment building completions rose by 13% in 1995, to 38,500, compared to 34,000 in 1994. Public sector apartment construction rose by 150% with 27,000 starts in 1995, while private sector apartment starts were up 8% to 34,900. Total construction meterage during 1995 rose by 23% to 12.4 million cubic meters; residential building accounted for a majority of this, with 8.6 million cubic meters of space.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* FOREIGN INVESTMENT IN 1995 WAS $2.1 BILLION.
Foreign investment in Israel including real and financial investments was $2.1 billion in 1995, compared to approximately $1 billion in 1994, the Bank of Israel reported. Real foreign investment for 1995 rose to $1.2 billion, up from $300 million in 1994, primarily as a result of direct investments by foreign citizens in Israeli companies. Approximately $500 million of the $1.2 billion in real investments was made by foreign concerns in a small number of local firms. Financial investments by foreign nationals in Israel in 1995 rose to approximately $1 billion, compared to approximately $500 million in 1994. A majority of these investments were either on the Tel Aviv Stock Exchange or in shares of Israeli concerns traded abroad.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712

* $8.5 BILLION WORTH OF FOREIGN CURRENCY IMPORTED INTO ISRAEL DURING 1995.
$8.5 billion worth of foreign currency was imported into Israel during 1995, compared to $1.6 billion in 1994, the Bank of Israel reported. $6.5 billion of this was brought in by Israeli residents, while $2.1 billion was brought in by foreign residents. A majority of the foreign currency came from loans taken by local residents from the commercial banking system, with two-thirds of these loans being short-term, in order to take advantage of changes in interest rates or foreign exchange rates.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712

* ISRAEL'S EXTERNAL DEBT BURDEN AS PERCENTAGE OF GDP FALLS TO 22% IN 1995.
Israel's external debt burden as a percentage of GDP fell to 22% in 1995, compared to 25% in 1994 and 28% in 1993, the Bank of Israel reported. The decline is mostly a result of GDP growth and a decline in the real debt level over the past few years. Israel's net external debt was $19.8 billion in 1995, an increase of $1.7 billion or 10% from the end of 1994, the bank also reported. Increases of $700 million and $200 million were reported in 1994 and 1993, respectively. The growth in the net external debt during 1995 total obligations minus properties and assets of the public, banking, and non-financial private sectors was primarily due to an increase in commercial credit take from abroad by firms from the non-financial private sector. Private sector loans worth $6.5 billion were taken from the commercial banks in 1995, though this did not translate into a higher net external debt because the commercial banks used internal resources for financing a large part of these loans, the Bank of Israel reported.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712

* KIBBUTZ INDUSTRIES HAVE HIGHER PERCENTAGE OF WOMEN SERVING AS MANAGERS THAN PRIVATE SECTOR INDUSTRIES.
The percentage of women managing kibbutz industries is 7.5% 30 of 400 factories, as compared to 2% in general industry, the Manufacturers Association reported. In addition, some 50 women in kibbutz industries serve in less senior positions such as marketing, research and development, manpower, and production managers.
Manufacturers Association - Oded Ben-Ami, 972-3-519880

FOREIGN TRADE:

* DEAD SEA WORKS TO ESTABLISH $50 MILLION JOINT VENTURE IN TURKEY.
The Dead Sea Works, a subsidiary of the Israel Corporation, is planning to establish a joint venture facility for producing salt for industrial and home use in Turkey. DSW's Turkish partner for the $50 million plant will be Alkim. The plant is expected to produce 100,000 tons annually. Before the new plant is built, a pilot project with a $5 million investment will be established. (Globes, 04.03.96, p.9)

* TAIWAN COMPUTER PRODUCER LITE-ON EXAMINING ESTABLISHING FACILITY IN ISRAEL.
Taiwanese computer parts manufacturer Lite-On has reported that it is examining the possibility of opening a joint venture in Israel with passive component producer, Vishay International. Lite-On reported that the amount of investment in the production facility would be in the tens of millions of dollars, according to Dr. Sing Mao, head of the concern's international division.
Industry and Trade Ministry - Dor Marom, 972-2-220339

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