ECONOMIC SURVEY
27 May 1996
(COMMUNICATED BY GPO ECONOMICS DESK)
MACRO-ECONOMIC SECTOR:
* VALUE OF CURRENCY IN PUBLIC'S HANDS GREW BY 14%, IN REAL TERMS, IN 1995.
The value of banknotes and currency held by the Israeli public grew by 14%
in real terms, and 23% in nominal terms, the Bank of Israel reported. This
compares to a 14% rise in nominal terms and a drop of 0.2% in real terms
which took place in 1994, the bank reported. The value of currency in use
by the public rose by NIS 1.6 billion to NIS 8 billion, with the number of
banknotes in circulation increasing by 17 million notes, a 19% rise, to
105 million notes. 1996 is the tenth anniversary of the New Israeli
Shekel, which replaced the old shekel in 1986.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712
* DUN & BRADSTREET (ISRAEL) SURVEY SHOWS ECONOMIC SLOWDOWN IN APRIL.
April was the third month in a row during which a slowdown in the economy
was recorded, according to a Dun & Bradstreet (Israel) index. The index
for April was 44%, down 6% from the month before. A figure above 50% shows
an improvement in activities, while below 50% is considered a worsening in
the economic condition.
Dun & Bradstreet (Israel) - Doron Daphne, 972-3-5103355
PEACE ECONOMICS:
* PRIVATE SECTOR GROUP VISITING OMAN AND QATAR TO DISCUSS COOPERATION.
A delegation from Israel's economic organizations, including the Israel
Manufacturing Association, the Federation of Israeli Chambers of Commerce,
and the Israel Export Institute, are currently visiting Oman and Qatar in
order to investigate economic cooperation opportunities. The group will
present 25 possible projects to private and public sector representatives
in both countries. Potential Israeli exports to Qatar are estimated at $50
million, while potential Israeli exports to Oman are estimated at $80
million.
Manufacturers Association - Oded Ben-Ami, 972-3-5198800
FOREIGN TRADE:
* GROWTH IN PLASTIC INDUSTRY EXPORTS.
Seven Israeli plastics and rubber manufacturers are currently
participating in the Argenplas '96 Exhibition taking place in Argentina.
According to the Manufacturers Association, Israeli firms are
participating in the exhibition in order to open the Latin and South
American market to their products. Plastic and rubber exports to the
region grew by 30% in 1995 to reach $15 million.
Israel's plastics and rubber industry is expected to increase its export
sales by 20% and reach $1 billion in 1996, according to Uri Peled,
chairman of the plastics division in the Manufacturers Association. Peled
said that Israeli exhibitors at the recent Interpak '96 exhibition in
Dusseldorf, expected that export deals worth $50 million would be signed
as a result of the exhibition. Twenty-one Israeli firms were among the
1,300 concerns participating in the large exhibition.
Manufacturers Association - Meir Barel, 972-3-5198845
Manufacturers Association - Uri Peled, 972-3-5198845
GOVERNMENT SECTOR:
* BANK OF ISRAEL RAISES INTEREST RATES BY 0.7%.
The Bank of Israel announced on 27.5.96 that it was raising its shekel
interest rates by 0.7% to the commercial banking sector, beginning
30.5.96. The bank reported it was making this move because there has been
an expansion in the M1 index, a decrease in interest rates in real terms,
an increase in inflationary expectations, and an increase in inflation
during the past few months, which is creating a deviation from the
government's 1996 inflation target.
Bank of Israel - Ohad Bar-Efrat, 972-2-6552712