ECONOMIC SURVEY - 12-Feb-98

February 12, 1998

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* CONSUMER GOODS IMPORTS DOWN IN JANUARY
The import of consumer goods into Israel were down in January 1998, compared with the same period in 1997, the Finance Ministry reported. Car imports were down by 7.4%, refrigerators by 10.1%, washing machines by 12.7%, televisions by 2.9%, videos by 28.7% and dish washers by 9.4%.
(www.mof.gov.il)
Finance Ministry - Eli Yosef, 972-2-5317201

* IMMIGRATION DOWN BY 7% COMPARED TO 1996
Immigration to Israel fell by 7% in 1997, to 66,000, the Central Bureau of Statistics reported. 83% (54,600) of the new immigrants in 1997 arrived from the republics of the former Soviet Union. Since the beginning of the latest wave of immigration (1989), 846,400 new immigrants have arrived in Israel with approximately 85% of them being from the CIS republics. The bureau noted that immigration from the USA, after having risen between 1991-1996, fell from 2,000 in 1996 to 1,800 in 1997.
(www.cbs.gov.il)
Central Bureau of Statistics - David Neumann, 972-2-6553400

*ELECTRONICS INDUSTRY EXPORTS RISE BY 17.5% IN 1997
Israel's electronics industry showed an increase of exports of 17.5% to $5.7 billion and an increase in total sales of 11% to $7.2 billion in 1997, the Israel Manufacturers Association reported. For the first time in five years, defense sector exports also rose, by 16% and reached $1 billion. The high tech sector comprises approximately 35% of all exports and of the approximately $3 billion in foreign investment in industry, about $1.5 billion of this was in the high tech sector. Close to 43,000 workers are employed in the electronics sector, the group reported.
Israel Manufacturers Association - Danny Laish, 972-3-5198755

GOVERNMENT SECTOR:

* BANK OF ISRAEL LIBERALIZES FOREIGN CURRENCY REGULATIONS
The Bank of Israel, on 8 February, 1998, announced further liberalizations of foreign currency regulations: Easing the opening of foreign currency bank accounts by Israeli citizens residing abroad; permitting the purchase of $1,000 in foreign currency at border crossings by Israeli and foreign residents without presenting travel documents; easing currency payment restrictions for importers and exporters; and allowing Israeli companies offering securities abroad to deposit the receipts in banks abroad. The central bank reported that the easing of restrictions completes the foreign currency reforms announced by the bank and the Finance Ministry in August 1997.
(www.bankisrael.gov.il)
Bank of Israel - Gabi Fishman, 972-2-6552712

* NIS 250 MILLION SPENT SO FAR ON "TECHNOLOGICAL INCUBATORS"
The Industry and Trade Ministry has, since the beginning of the Technological Incubators program in 1991, spent NIS 250 million in development areas on the program for providing entrepreneurial opportunities to mostly new immigrant scientists and technicians. The ministry reported that 60% of the 550 incubator projects (350) that have completed the project's two year limit, are now independent firms having total sales of $25 million. The 1998 budget for the program is $35 million.
(www.tamas.gov.il
or www.incubators.org.il)Industry and Trade Ministry - Haya Peri, 972-2-6220340

* NIS 1 BILLION SPENT PREPARING FOR YEAR 2000 CELEBRATIONS
The Government of Israel has so far spent NIS 1 billion on preparations for the year 2000 in which 4.5 million tourists are expected, the Tourism Ministry reported. Of this total, the Tourism Ministry spent NIS 230 million on tourism infrastructure primarily in Jerusalem, Nazareth, Tzipppori, Mt. Tabor and surrounding the Kinneret, the expected pilgrimage centers. The ministry expects to spend more than NIS 310 million on these projects in 1998.
(www.infotour.co.il)
Tourism Ministry - Orly Doron, 972-2-754845

FOREIGN TRADE: