Jerusalem, 18 February 1999
Finance Ministry: 1999 Need Not Be Lost Economically
(Communicated by Finance Ministry Spokesman)
Finance Ministry Director-General Ben-Zion Zilberfarb said today
(Thursday) 18.2.99 in a speech to Hoteliers Committee in Jerusalem
that 1999 need not necessarily be lost to the Israeli economy. "In
light of the approval of the State budget within its framework and
the maintaining of other necessary conditions, it may become clear
that 1999 will not be a lost year, but a year that will return the
economy back onto the path of growth."
These other necessary conditions are a growth supporting monetary
policy, guarding the wage front while signing reasonable and
responsible wage agreements and diverting more budgetary resources to
infrastructure investment beyond the billion shekels already
transferred in the 1999 budget.
As for the tourism sector's preparations for 2000, Zilberfarb said
that it can be hoped that the rise in tourism will contribute its
part to economic growth. "An additional 1.5 million tourists in 2000
could add a percentage point to economic growth. An addition of 1% in
growth in the tourist sector and the realization of budget plans,
structural reforms and economic initiatives that we will prepare for
the next government, will enable the achievement of the "two, three,
four" goals for 2000 2% reduction in unemployment, a 3%
inflationary environment and 4% or more economic growth. However, we
must not forget that the conditions of uncertainty at the
international and local levels have considerable effects on the
Israeli economy in general and the tourism sector in particular."
Zilberfarb concluded, "The realization of the forecasts for 2000 in
the area of tourism will be heavily affected by geopolitical
conditions, the peace process and the easing of security concerns in
the region. For many years, we have seen how Israeli tourism is
extremely sensitive to these conditions of uncertainty."