ECONOMIC SURVEY
November 16, 1998
(Communicated by GPO Economics Desk)
MACRO-ECONOMIC NEWS:
* CoL INDEX UP 3% IN OCTOBER
The CoL index rose by 3% in October, as opposed to the previous month, and
now stands at 164.1 points (on the base of 1993=100), the Central Bureau
of Statistics reports. In the first ten months of 1998, the index rose a
total of 7.2% (it rose 6.6% excluding fruits and vegetables). A breakdown
by sector is as follows: food (excluding fruits and vegetables) 1.9%;
fruits and vegetables 2.9%; rent 4.2%; apartment maintenance 2.2%;
furniture and household appliances 4.2%; clothing and footwear 7.0%;
health 2.8%; education, sports and culture 1.8%; transportation and
communications 2.6%. The wholesale price index for local industries rose
3.2% in October, and the overall increase since January is 4.2%. The
increases varied from less than 2% for tobacco products, food products and
textiles, to over 9% for clothing (10.5%) and refined oil products (9.9%).
Other industrial products rose at rates between 2% and 6% in October.
Construction inputs for new housing rose by 0.6% in October, for a total
increase of 4.4% since January.
Central Bureau of Statistics - David
Neumann, 972-2-6553400
* UNEMPLOYMENT STABLE
The number of unemployed people in October 1998 was 149,300, a drop of
0.1% over September, the Employment Service reported.
* ISRAEL'S FOREIGN DEBT
Israel's net foreign debt shrunk, in the first eight months of 1998, by
approximately $500 million to a total of $16.7 billion. Short term (up to
one year) assets of the Israeli economy abroad is $14 billion greater than
the short term foreign debt. The gross foreign debt reached $53.9 billion
at the end of 1998, an increase of $2.7 billion since the end of 1997, due
mainly to the increase of private foreign debt. However, the gross short
term foreign debt (up to one year) shrank by $300 million.
* BANK OF ISRAEL RAISES INTEREST RATES
The Bank of Israel raised interest rates by 2% to 13.5%, on 15.11.98, in
order to protect the exchange rate of the shekel vis-a-vis the US dollar,
which has risen 18.2% since the end of July 1998. The step was taken in
order to calm markets, and ease inflation that could affect wage
agreements and the budget, and as part of the Bank's monetary policy to
guarantee conditions of stability and fight inflation.
Bank of Israel
(www.bankisrael.gov.il) - Gabi Fishman, 972-2-6552712
* MANUFACTURERS SIGN ANTI-POLLUTION AGREEMENT
The Ministry of Environment and the Manufacturers Association of Israel
have signed an agreement to reduce industrial plant emissions in order to
meet standards which have been set by the ministry, based on European
Union standards. A joint committee will be set up by the ministry and the
association to deal with problems, violations and complaints regarding the
agreement.
* 1,609,000 VISITORS TO ISRAEL IN FIRST 9 MONTHS OF 1998
The Central Bureau of Statistics reported that 1,609,000 visitors arrived
in Israel during the first nine months of 1998, including 1,422,000
tourists. 274,000 of these came overland from Egypt, Jordan or Lebanon and
187,000 on cruise ships.
* ELECTRIC COMPANY SEEKS TO IMPORT EGYPTIAN NATURAL GAS
Chairman of Israel Electric Corporation Board of Directors Gad Ya'acobi
stated that the Wye Memorandum could enable bilateral and regional
arrangements between IEC and countries in the region, which will enable
economies of scale and make cheaper electricity available to Israeli and
regional consumers. IEC Director-General Rafi Peled stated that the Wye
Memorandum could help negotiations to import natural gas from Egypt.
STOCK EXCHANGE DATA FOR OCTOBER 1998
The Tel Aviv Stock Exchange went through a number of swings in value
during the month, dropping 9.8% before rising again by 10.5% by month's
end. The overall change for October was -0.4%. The total value of
stocks and tradeables was NIS 161.9 billion, and government and other
bonds was NIS 157.7 billion, at the end of October, 1998.
Tel Aviv Stock
Exchange - Hagit Mika 972-3-5677411
DELEGATIONS AND EXHIBITIONS:
* DUKE OF KENT VISITS REGION
The Duke of Kent visited Israel as part of a working visit to the region
in his capacity as Deputy Chairman of the British Exports Institute. The
Duke's visit was intended to deepen bilateral trade relations between
Britain and Israel.
COMMUNICATIONS MINISTER HOSTS ISRAEL TELECOM 98 EXHIBITION
Communications Minister Limor Livnat hosted the Israel Telecom '98
Exhibition and held meetings with ministers from Argentina, Austria,
Cyprus and Poland who had accompanied business delegations from their
countries. Minister Livnat also met with officials from several European
and American software and telecommunications firms.
Communications
Ministry Spokeswoman - Ayala Bar 972-2-6706323