ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
November 19, 1996
MACRO-ECONOMIC SECTOR:
* CPI RISES BY 0.8% IN OCTOBER.
Israel's inflation rate rose by 0.8% during October, bringing the first
nine month's inflation rate to 9.0%, the Central Bureau of Statistics
announced. During the month the fruits and vegetables index fell by 1.9%,
while the food index (excluding fruits and vegetables) rose by 0.9%. Other
factors which rose during the month included apartments by 0.8%; apartment
maintenance by 0.4%; and clothing and shoes by 7.7%.
Central Bureau of Statistics - David Neumann, 972-02-6553400
* FOREIGN INVESTMENTS IN REAL ESTATE EQUAL $267 MILLION FOR FIRST NINE
MONTHS OF 1996.
Foreign investments in the real estate sector reached $267 million during
the first nine months of 1996, Deputy Housing and Construction Minister
Meir Porush reported. Porush said that during 1995, foreign resident's
investments in the sector were $371 million, in 1994 they were $355
million, and in 1993 these investments were $255 million. (Globes,
07.11.96, p.10)
* OCTOBER'S BALANCE OF TRADE DEFICIT EQUALS $925.7 MILLION.
Israel's balance of trade deficit in October was $925.7 million compared
to $683.6 in September and $1.05 billion in August, the Central Bureau of
Statistics reported. During October, the $2.6 billion worth of imports was
divided by 60% being raw materials; 22% of machinery, equipment, and
vehicles; and 18% of consumer goods. Of October's $1.7 billlion in
exports, approximately 66% were industrial goods; 31% were diamonds; and
3% were agricultural goods.
Central Bureau of Statistics - David Neumann, 972-2-6553400
* MONEY SUPPLY CONSTRICTS DURING OCTOBER.
The money supply (M1) decreased by 1.2% during October, the Bank of Israel
announced. This follows an increase of 1.5% which was recorded in
September and 0.3% decrease in August. Since the beginning of 1996, the M1
rate has risen by 9.3%.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712
* IMPORTED CAPITAL BY PRIVATE SECTOR REACHES $4.1 BILLION FOR FIRST NINE
MONTHS OF 1996.
Capital brought into Israel by the private sector during the first nine
months of 1996 was $4.1 billion, a 41% drop as compared to the same time
in 1995, the Bank of Israel reported. During the same period in 1995 the
amount was $7.2 billion while in 1994 the amount was $1.2 billion. The
percentage of short term credit taken by Israeli citizens in this amount
fell to 53%, as compared to 71% during the same period in 1995, while the
percentage of investments by foreign citizens within the imported capital
figure amounted to 47%, as compared to 21% during the corresponding period
last year.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712
TOURISM SECTOR:
* TOURISM SECTOR REVENUES TO DECREASE BY 35% IN 1996.
Tourism sector revenues are expected to fall by 35% (in dollar terms) to
approximately $1.95 billion in 1996, compared to 1995, according to a
survey conducted by the private organization, Business Data Israel. The
firm said that the drop was due to a slow down of incoming tourists into
Israel, a drop in outgoing airfares, and a drop in the increase of
outgoing Israeli tourists. In 1995, tourism revenues were close to $3
billion, a 12% increase over revenues in 1994. (Globes, 18.11.96, p.17)
DELEGATIONS:
* KOREA'S HANWHA GROUP TO MAKE VISIT.
South Korea's Hanwha Group, whose 1995 sales were close to $14 billion, is
sending a group of executives to examine business opportunities in Israel
this week. The group will be looking to establish joint ventures or joint
R&D projects in the areas of telecommunications, biotechnology, fine
chemicals, medical equipment, pharmaceuticals, and satelite
communications.
Center for Business Promotion - Noah Shani, 972-2-5861707
* AMERICA'S RAYCHEM LOOKING FOR ISRAELI PROJECTS.
America's Raychem Corporation is looking to invest in Israeli firms in the
telecommunications and information technologies fields, its President
Richard Kashnow told Industry and Trade Minister Natan Sharansky during a
meeting which took place between them last week. Raychem, which is active
in those fields, is especially interested in start-up firms and those from
technological incubators.
Center for Business Promotion - Noah Shani, 972-2-5861707
GOVERNMENT SECTOR:
* NEW MAGNET RESEARCH & DEVELOPMENT PROJECT IN MULTI-CHIP MODULES CREATED.
The MAGNET program of the Industry and Trade Ministry announced it has
established a new MAGNET program in order to establish an industrial base
for multi-chip module programs and R&D infrastructure. Companies
participating in the program include Elisra, Techtel, Miniature
Components, and Harmatron, as well as faculty from both Tel Aviv and Ben
Gurion Universities. The MAGNET program is co-sponsored by the government,
educational institutions, and the private sector in order to create an
industrial and R&D infrastructure in a specified field.
Industry and Trade Ministry - Haya Peri, 972-2-6220340