ECONOMIC SURVEY - 16-Apr-96

16 April 1996

(Communicated by GPO Economics Desk)

MACRO-ECONOMIC SECTOR:

* NIS 9 MILLION IN DIRECT AND INDIRECT DAMAGE CAUSED TO INDUSTRIAL SECTOR ON CONFRONTATION LINE. AGRICULTURE SECTOR REPORTS CLOSE TO NIS 1.5 MILLION IN DAMAGES.
According to the Israel Manufacturers Association, katyusha attacks caused direct and indirect damage to the industrial sector on the confrontation line on the country's northern border valued at NIS 9 million, as of 14.4.96. Direct damages include wages paid to workers who are absent, while indirect damages include loss of orders, loss of sales, production and supply delays, and future payments to workers. Some 40 factories with 7,000 workers on the northern border were included in the damage survey. The Agriculture Ministry reported that, as of 14.4.96, direct and indirect damages to the sector on the confrontation line amounted to almost NIS 1.5 million.
Manufacturers Association - Oded Ben-Ami, 972-3-5198800
Agriculture Ministry - Ronny Hassid, 972-3-6911749

* INFLATION RATE RISES BY 1.0% IN MARCH.
March's inflation rate rose by 1.0%, compared to February, the Central Bureau of Statistics reported. The Bureau reported that the increase was due an increase in almost all elements of the CPI. During the month, prices of fruits and vegetables rose by 11.9%, food by 0.9%, housing by 0.1%, furniture and furnishings by 0.6%, apartment maintenance by 0.5%, and health costs by 0.4%.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* 1995 GOVERNMENT DEBT INCREASES BY 2% IN REAL TERMS AND DECREASES BY 7% IN RELATION TO DOMESTIC PRODUCT.
Israel's debt in 1995, fell by 7% in relation to the country's GDP its internal debt by 4% and its external debt by 3% continuing a decade long trend, the Bank of Israel reported. Interest payments, as a percentage of the GDP declined to a level of 5.9% in 1995, down from 6.3% in 1994, primarily as a result of economic growth, and revaluation of the shekel against the dollar. Since 1992, when the government began issuing non- linked bonds, the internal non-linked debt has risen to constitute 4% of Israel's total internal debt. The central bank reported that non-linked bonds constituted 42% of the government's offerings in 1995, compared to 18% in 1993-94.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712

* FIRST QUARTER BALANCE OF TRADE DEFICIT GREATER THAN $3 BILLION.
Israel's balance of trade deficit reached $3 billion for the first quarter of 1996, the Central Bureau of Statistics reported. Total imports amounted to $7.7 billion, compared to $4.7 billion exports for the period. Exports as a percentage of imports declined to 52.6% for the quarter, compared to 58.3% during the last quarter of 1995, and 67.1% during the last quarter of 1994.
Central Bureau of Statistics - David Neumann, 972-2-6553400

DEFENSE INDUSTRIES SECTOR:

* AMERICAN NATIONAL SECURITY BUSINESS DELEGATION VISITS.
A group of senior American executives, from the Business Executives for National Security (BENS) are in Israel for their visit, between 14-19.4.96. During the trip, coordinated by the Defense Ministry, the group will meet senior government officials as well as visit companies such as Elbit, Israel Aircraft Industries, and the IDF.
Defense Ministry - Dan Weinreich, 972-3-6975546

PEACE ECONOMY:

* ISRAEL OPENS INTEREST OFFICE IN TUNISIA.
Israel opened an interest office in Tunisia on 8.4.96. The office is expected to further economic cooperation between the two countries, including tourism development, solar energy, agriculture, construction, and health, the Foreign Ministry reported.
Foreign Ministry - Danny Shek, 972-2-303343

FOREIGN TRADE:

* UNILEVER PLANNING TO MAKE ISRAEL ITS MIDDLE EAST REGIONAL CENTER.
Unilever, the food and consumer products multinational corporation, which has recently acquired 50% of Strauss Dairies ice cream firm, reported that Israel would become it's Middle East regional hub, according to Unilever's President of European Operations, Roy Brown. Brown met with Prime Minister Shimon Peres on 11.4.96.
Prime Minister's Office - Ilan Flatto, 972-2-705555

* UNILEVER ACQUIRES 60% OF WITCO ISRAEL.
Unilever, the giant Anglo-Dutch conglomerate, acquired 60% of Witco Israel's shares earlier this month. Unilever paid Witco USA, the parent company, $14 million for the shares. Witco Israel produces detergents and soap. (Globes, 12.4.96, p.10)