ECONOMIC SURVEY - 16-Jul-96

ECONOMIC SURVEY

(Communicated by GPO Economics Desk) July 16, 1996

MACRO-ECONOMIC NEWS:

* BALANCE OF TRADE DEFICIT INCREASES 14.3% DURING FIRST HALF OF 1996.
Israel's balance of trade deficit rose by 14.3% to $5.6 billion during the first half of 1996, compared to $4.9 billion during the same period in 1995, the Central Bureau of Statistics reported. Total imports for the period were $14.9 billion, while total stood at were $9.3 billion. Since March 1996, imports have remained stable, having increased between 1-2% monthly from the start of 1994 through February 1996. Exports have also held stable for the past few months, following an average monthly increase of 0.5% during the second half of 1995.
Central Bureau of Statistics - David Neumann, 02-6553400

* STABLE ECONOMIC ACTIVITY DURING SECOND QUARTER OF 1996.
Economic activity remained stable during the second quarter of 1996, according to the Bank of Israel's quarterly survey of economic activity. The commercial, industrial, hotel, construction, transportation and communication sectors reported stable economic activity during the period -- though the Bank reported that after seasonal adjustments, economic activity actually expanded. The construction industry reported a slowdown, though their products became more expensive in dollar terms. Meanwhile, the hotel sector reported a drop in activity, though overnights by Israelis remained stable.
Bank of Israel - Ohad Bar-Efrat, 02-6552712

* DROP IN BUSINESS SECTOR ACTIVITY BY 3%.
During the first half of 1996, Israel's commercial activity declined by 3%, compared to the second quarter of 1995 (and 1.5% compared to the first quarter of 1995), the Federation of Israeli Chambers of Commerce reported. According to a survey of 70 firms in 20 sectors of the economy, there was a clear decline in sales in branches associated with the construction, textile, processed foods, and paper industries.
Federation of Israeli Chambers of Commerce - Ronie Reiber, 03-5631018

* CAR IMPORTS UP BY 1.8% DURING FIRST HALF OF 1996.
Israelis imported 65,190 automobiles during the first half of 1996, an increase of 1.8%, over to the same period in 1995, the Finance Ministry reported. During the first half of the year imports of refrigerators rose by 6.4% to 44,760; of washing machines by 6.2% to 71,100; of television sets by 6.3% to 148,115; of video machines by 18.3% to 56,965; and of dishwashers by 17.8% to 22,075.
Finance Ministry - Eli Yosef, 02-317201

* ISRAELI PHARMACEUTICALS VALUED AT $500 MILLION.
Israel's pharmaceuticals market is valued at approximately $500 million, the Manufacturers Association reported. The Association reported that Israelis spend an average of $94 on pharmaceuticals annually, as compared to $284 per person in the US, $76 per person in Ireland, $123 per person in Holland, and $226 per person in Italy.
Israel Manufacturers Association - Moshe Manor, 03-5198800

* COMMERCIAL AND SERVICE BRANCHES EQUAL 41% OF BUSINESS SECTOR'S 1995 GDP.
The commercial and service branches of the economy comprised 41% of Israel's 1995 business sector GDP, according to the Federation of Israeli Chambers of Commerce. Industry represented 28% of the business sector's GDP, while transportation and communications accounted for 13%, and agriculture for 4% of the sector's GDP. During 1991-95, 415,000 new jobs were created within the economy, the FICC reported.
Federation of Israeli Chambers of Commerce - Ronie Reiber, 03-5631018

* 44.4% OF ISRAEL'S POPULATION LIVES IN METROPOLITAN TEL AVIV AREA.
According to initial statistics from the 1995 census, 44.4% of Israel's population, or 774,800 households, live in the Metropolitan Tel Aviv area, an increase of over 61%, the Central Bureau of Statistics reported. The percentage of Metropolitan Tel Aviv within the entire population fell from 47% in 1983 and 51% in 1961. The actual number of residents within the city of Tel Aviv-Jaffa as a percentage of the metropolitan area, fell by 7% to 14%.
Central Bureau of Statistics - David Neumann, 02-6553400

GOVERNMENT SECTOR:

* ISRAEL TO ASSIST THAILAND IN DEVELOPMENT OF DAIRY AND COTTON INDUSTRIES.
Israel will assist Thailand in developing its dairy and cotton industries, Agriculture Minister Rafael Eitan announced during a recent visit to Israel by the Labor Minister of Thailand. Thai workers who complete their contracts in Israel will be among those integrated into these industries in Thailand. Within a number of months, Israel will send a delegation of experts to formulate the conception of the joint projects.
Agriculture Ministry - Naftali Yaniv, 03-6971747

PEACE ECONOMICS: