ECONOMIC SURVEY - 24-Apr-98

April 24, 1998

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* INVESTMENT IN R&D CREATES ANNUAL GROWTH OF 1.5% IN INDUSTRIAL GDP
Investment in research and development creates an annual increase of 1.5% to Israel's industrial GDP, the Bank of Israel has shown in research conducted on the years 1960-1996. The bank's research also showed that investment in infrastructure produced an increase of approximately 15% during the 26-year period, an average annual increase of 0.75%. Inflation's influence on the industrial GDP from 1979-1985 cut approximately 25% from Israel's GDP, the bank noted.
Bank of Israel - Gabi Fishman, 972-2-6552712

* COMMERCE AND SERVICES REVENUES INCREASE DURING FIRST TWO MONTHS OF 1998
Commerce and services revenues increased at an annual rate of 4% during the first two months of 1998, according to the Central Bureau of Statistics. The bureau reported that these revenues include wholesale and retail sales, food and hospitality services, and business and personal services, which remained at the same level when compared with the last quarter of 1997. However, in the financial, business, and real estate services sector, growth slowed to an annual rate of 5% as compared to an annual rate of 11% at the end of 1997.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* REAL FOREIGN INVESTMENTS INCREASE TO $1.8 BILLION IN 1997
Real (non-financial) foreign investments into Israel in 1997 rose to $1.8 billion, as compared to approximately $1.4 billion in 1996 and $1.3 billion in 1995, the Bank of Israel reported. The increase in foreign investments primarily consisted of investments into the financial services sector, and into the software, telecommunications, electronics and electricity sectors. Total foreign investment into Israel was approximately $3 billion in 1997, with a large part, $788 million, coming from investments in securities traded on the Tel Aviv Stock Exchange. In 1996, foreign investments in securities in Tel Aviv came to $61 million. Foreign investments in non-public firms rose to $903 million in 1997, compared to $740 million in 1996 and $223 million in 1994.
Bank of Israel - Gabi Fishman, 972-2-6552712

* NUMBER OF HOUSEHOLDS HAS RISEN 37% SINCE 1986
The number of households in Israel rose by 37% during the decade spanning 1986-1996, the Central Bureau of Statistics reported. The number of Jewish households grew by 33% to 1.346 million, while the number of Arab and other households rose by 67% to reach 202,000. 52.2% of all households have children under the age of 17 and the average number of children in a Jewish home was 2.22, while this number was 3.08 in Arab and other homes. Central Bureau of Statistics - David Neumann, 972-2-6553400

* AGRICULTURAL OUTPUT UP 4% IN CURRENT PRICES IN 1997
The value of Israel's agricultural output rose by 4% to NIS 12.15 billion, in current prices, though in volume, output fell by 1% during 1997, the Central Bureau of Statistics reported. 21% of agricultural goods were exported, 33% went for industrial uses, while 36% went to the local market. Agricultural output from poultry was 19%, from cows was 17%, from vegetables 16%, from fruits 14%, from field crops 9%, from flowers 8%, and from citrus orchards 7%.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* DURABLE CONSUMER GOODS IMPORTS INCREASE DURING FIRST QUARTER OF 1998
Durable consumer goods imports mostly gained during the first quarter of 1998, as compared to the same period the year before, the Central Bureau of Statistics reported. Imports of refrigerators increased by 19.8%, of televisions by 12%, of video machines by 18.8%, and of dish washing machines by 9.5%. Car imports, on the other hand fell by 5.2%, and those of clothes washing machines fell by 0.5%.
Central Bureau of Statistics - David Neumann, 972-2-6553400