THE ISRAELI ECONOMY AT A GLANCE

June 1995

State of Israel

Ministry of Industry and Trade

P.O.B. 299, Jerusalem 91002, Israel

Tel.: 972-2-220220

Fax.: 972-2-245110

TABLES

ISRAEL – FACTS AND FIGURES 1994

(Figures refer to millions of $US unless otherwise stated)

GROSS DOMESTIC PRODUCT (GDP) 73,944 BUSINESS SECTOR PRODUCT 49,600 GDP PER CAPITA ($US) 13,728 INVESTMENT IN FIXED CAPITAL 16,932 IMPORTS OF GOODS (NET) 23,444 EXPORTS OF GOODS (NET) 15,929 INDUSTRIAL EXPORTS 14,915 IMPORTS OF GOODS AND SERVICES 34,534 EXPORTS OF GOODS AND SERVICES 23,386 IMPORT SURPLUS (OF GOOD AND SERVICES)* 11,148 EXTERNAL DEBT (NET) 11,740 POPULATION – AVERAGE (THOUSANDS) 5,390 EMPLOYMENT (THOUSANDS) 1,871 UNEMPLOYMENT RATE (%) 7.8 INFLATION RATE (CPI-%) 14.5

ALL FIGURES ARE ESTIMATES * BALANCE OF PAYMENTS DEFINITION

AS OF END OF SEPTEMBER 1994

Source: Central Bureau of Statistics, Foreign Trade Department

ISRAEL’S EXPORTS OF GOODS 1994

(MILLIONS OF $ US)

TOTAL EXPORT 16,884

NORTH AMERICA * 5,355 31.7% EU 4,756 28.1% ASIA 3,152 18.6% CENTRAL/EASTER EUROPE 670 3.9% EFTA 544 3.2% LATIN AMERICA 516 3.0% AFRICA 282 1.6% OCEANIA 214 1.2% UNCLASSIFIED 1,395 8.2%

* 1. N.AMERICA INCLUDING: USA, CANADA

2. EXPORT TO USA – 5,250.2

INCLUDING ASIAN REPUBLICS OF FORMER USSR

FIGURES FOR 1994 INCLUDING EXPORT TO AUSTRIA, SWEDEN AND FINLAND

BEFORE REDUCTION OF RETURNED GOODS

Source: Central Bureau of Statistics, Foreign Trade Department

ISRAEL’S IMPORTS OF GOODS, 1994

(MILLIONS OF $US)

TOTAL IMPORT – 23,775

EU 12,139 51.0% NORTH AMERICA * 4,427 18.6% ASIA 2,293 9.6% EFTA 2,167 9.1% CENTRAL/EASTERN EUROPE 595 2.5% AFRICA 325 1.2% LATIN AMERICA 270 1.1% OCEANIA 63 0.2% UNCLASSIFIED 1,497 6.3%

* 1. N.AMERICA INCLUDING: USA, CANADA

2. EXPORT TO USA -4,272. 18%

INCLUDING ASIAN REPUBLICS OF FORMER USSR

FIGURES FOR 1994 INCLUDING EXPORT TO AUSTRIA, SWEDEN AND FINLAND

BEFORE REDUCTION OF RETURNED GOODS

Source: Central Bureau of Statistics, Foreign Trade Department

INDUSTRIAL EXPORTS BY MAJOR BRANCHES 1994

TOTAL INDUSTRIAL EXPORT TOTAL EXCLUDING DIAMONDS $14,915 (MILLIONS OF $ US) $11,372 (MILLIONS OF $ US) ———————- DIAMONDS 23.8% ELECTRONICS 21.9% ELECTRONICS 28.7% CHEMICALS PLASTICS 17.9% CHEMICALS, PLASTICS 23.4% METAL & MACHINERY 16.5% METAL & MACHINERY 21.7% TEXTILES 6.8% TEXTILES 8.9% MISCELLANEOUS 6.2% MISCELLANEOUS 8.1% FOOD 3.8% FOOD 5.0% MINING 2.3% MINING 3.0% LIGHT INDUSTRIES 0.8% LIGHT INDUSTRIES 1.1%

Source: Central Bureau of Statistics, Foreign Trade Department

CONTRIBUTION OF SPECIFIC REGION TO EXPORT GROWTH 1994 COMPARED TO 1991

NORTH AMERICA* 34.2%

ASIA 28.0%

WESTERN EUROPE 11.8%

CENTRAL/EASTERN EUROPE 7.9%

LATIN AMERICA 3.5%

AFRICA 1.9%

OCEANIA 1.9%

UNCLASSIFIED 10.8%

TOTAL EXPORT 1991 – 11,891 TOTAL EXPORT 1994 – 16,884 (MILLIONS OF $ US)

* USA – 33%

BEFORE REDUCTION OF RETURNED OF GOODS

Source: Central Bureau of Statistics, Foreign Trade Department

CONTRIBUTION OF SPECIFIC INDUSTRIAL BRANCHES

TO THE GROWTH IN INDUSTRIAL EXPORTS

1980 COMPARED TO 1994

ELECTRONICS 29.3%

DIAMONDS 21.1%

RUBBER, PLASTICS & CHEMICALS 17.8%

METAL, MACHINERY 14.7%

MISCELLANEOUS 6.9%

TEXTILES 5.3%

FOOD 2.7%

MINING 1.6%

LIGHT INDUSTRIES 0.6%

TOTAL INDUSTRIAL EXPORT 1980: MILLIONS OF US $ 4,749.5 TOTAL INDUSTRIAL EXPORT 1994: MILLIONS OF US $ 14,915.4

Source: Central Bureau of Statistics, Foreign Trade Department

BREAKDOWN OF IMPORT INCREASE BY REGION

1994 COMPARED TO 1991

Figures as % of Total Increase

WESTERN EUROPE 64.15

NORTH AMERICA* 15.04

ASIA 13.59

CENTRAL & EASTERN EUROPE 4.19

UNCLASSIFIED 1.95

LATIN AMERICA 0.54

OCEANIA 0.20

TOTAL IMPORTS 1991 – 15,325 TOTAL IMPORTS 1994 – 23,775

(MILLIONS OF US $)

* USA – 14.7

Source: Central Bureau of Statistics, Foreign Trade Department

RESOURCES AND USERS OF RESOURCES 1994

RESOURCES USES OF RESOURCES 110.0 (BILLIONS OF $US) 110.0 (BILLIONS OF $US)

GROSS DOMESTIC PRODUCT (GDP) 67.3% PRIVATE CONSUMPTION 43.1% IMPORTS 32.7% EXPORTS 21.8% PUBLIC CONSUMPTION 19.3% GROSS DOMESTIC INVESTMENT 15.8%

Source: Central Bureau of Statistics, National Accounts Dept.-Estimate

INVESTMENT IN ECONOMIC INFRASTRUCTURE 1991-1994 (MILLION OF $US)

1991 1992 1993 1994

ELECTRICITY 1,528 2,033 2,820 3,620 ROADS 983 1,319 1,860 1,840 COMMUNICATION 1,340 1,395 1,550 1,690 WATER AND SEWAGE 159 257 540 659 RAILROADS 158 193 140 416 INDUSTRIAL PARKS 61 106 270 233 TOURISM 38 77 150 200 PORTS 146 191 114 253

TOTAL INVESTMENT 4,411 5,571 7,444 8,911

Source: Ministry of Finance

BUSINESS PRODUCT COMPOSITION

FOR THE YEAR 1994*

(1993 PRICES)

INDUSTRY 38.4%

TRADE & SERVICES 27.1%

TRANSPORTATION & COMMUNICATION 15.0%

CONSTRUCTION 11.6%

AGRICULTURE 4.6%

WATER & ELECTRICITY 3.3%

* ESTIMATE EXCLUDING FINANCIAL SERVICES

Source: Central Bureau of Statistics, Foreign Trade Department

IMMIGRATION TO ISRAEL, 1993

DISTRIBUTION BY OCCUPATION

SCIENTIFIC PROFESSIONAL + TECHNICAL 69.9% INDUSTRIAL + OTHER WORKERS 17.4% SALES + SERVICES WORKERS 6.6% MANAGERIAL ADMINISTRATIVE + CLERICAL 4.5% AGRICULTURE WORKERS 1.6%

Source: Central Bureau of Statistics, Foreign Trade Department

PRODUCTION BY MAJOR INDUSTRIAL BRANCHES, 1994 PERCENTAGE BREAKDOWN

(estimate)

METALS, MACHINERY & ELECTRONICS 32.8% FOOD & BEVERAGES 17.3% CHEMICALS, RUBBER & PLASTICS 16.7% LIGHT INDUSTRIES & MISCELLANEOUS 11.5% TEXTILES, CLOTHING & LEATHER 8.7% POLISHED DIAMONDS (net) 7.4% EXTRACTIVE INDUSTRIES & MINERALS 5.7%

Source: Economic & Planning Administration, Ministry of Industry and Trade

CONSUMER PRICE INFLATION RATES, 1970- 1994

1970 10%

1972 12%

1974 56%

1976 38%

1978 48%

1980 133%

1982 132%

1984 445%

1986 20%

1988 16%

1990 18%

1992 9.4%

1994 14.5%

Source: Central Bureau of Statistics, Foreign Trade Department

GNP PER CAPITA, 1993 GNP PER CAPITA, IN PPP* TERMS, 1993 INTERNATIONAL COMPARISON ($US) INTERNATIONAL COMPARISON ($US)

JAPAN 31,450 USA 24,750

USA 24,750 JAPAN 21,090 GERMANY 23,560 GERMANY 20,980

UK 17,790 UK 17,750

ISRAEL 13,760 ISRAEL 14,890 IRELAND 12,580 IRELAND 11,850 PORTUGAL 7,890 PORTUGAL 9,890

KOREA REP 7,670 KOREA REP 9,810 ARGENTINA 7,290 ARGENTINA 9,130 HUNGARY 3,330 HUNGARY 6,260 JORDAN 1,190 JORDAN 4,010

CHINA 490 CHINA 2,120

* PPP = PURCHASING POWER PARITY

Source: World Bank Atlas, 1995

REAL GROWTH OF EXPORT OF GOODS AND SERVICES INTERNATIONAL COMPARISON INTERNATIONAL COMPARISON

ANNUAL AVERAGE FOR 1990-1994*

TURKEY 7.5

ISRAEL 7.1

USA 6.6

GREECE 5.5

GERMANY 5.5

JAPAN 4.6

DENMARK 4.5

PORTUGAL 4.4

BELGIUM 3.7

FRANCE 3.7

* 1994 figure estimates

Source: OECD Economic Outlook, Dec. 1994. For Israel – C.B.S.

CIVILIAN R&D EXPENDITURE AS A PERCENTAGE OF GDP

INTERNATIONAL COMPARISON, 1991

JAPAN 3.0

GERMANY 2.7

ISRAEL 2.2

USA 2.1

FRANCE 2.0

DENMARK 1.7

UK 1.7

ITALY 1.3

CANADA 1.3

Source: OECD Economic Outlook, Dec. 1994. For Israel – C.B.S.

MAIN ECONOMIC INDICATORS, 1991-1994

1991 1992 1993 1994 91-94 Real annual percentage annual change average

GDP 6.2 6.7 3.4 6.8 5.8 Business sector product 7.5 8.0 3.5 7.9 6.7 GDP per capita 1.0 1.9 1.3 2.8 1.7 Industrial exports -3.2 12.3 14.5 14.6 9.3 Metal machinery & electronic exports -3.1 14.0 25.8 12.8 11.9 Investment in fixed capital 39.7 6.3 0.2 12.9 13.8 Investment in dwellings 73.8 -0.6 -27.1 1.4 6.3

Dwelling Investment/GDP 6.0 9.4 6.6 6.3 7.1 (percentage ratio) External Debt/GDP 29 23 24 23* 25 (percentage ratio) Civilian Import Surplus 5.1 5.2 6.0 9.0 6.3 (Billions of Dollars) Net External Debt 15.2 15.2 15.7 17.2* 15.8 (Billions of Dollars) Consumer Price Inflation (CPI) 18.0 9.4 11.2 14.5 13.2 (percent)

* Debt figure based on first three quarters of 1994.

POPULATION, IMMIGRATION AND EMPLOYMENT

1990 1991 1992 1993 1994

Average Population 4,660 4,949 5,149 5,261 5,390 (thousands) Percentage change in 6.2 3.5 2.7 2.5 average population Immigration 199.5 176.1 77.1 76.8 79.8 (thousands) Employed Persons 1,492 1,583 1,650 1,751 1,871 (thousands) Unemployed Persons 158 187 208 195 158 (thousands) Unemployment rate 9.6 10.6 11.2 10.0 7.8

MAIN INDUSTRIAL INDICATORS

Real Annual Percentage Change

1990 1991 1992 1993 1994

Production* 6.3 6.7 8.2 6.8 7.2 Exports 5.3 0.8 14.5 18.8 12.2 Employment* -0.8 4.1 4.0 4.3 3.5 Productivity* 7.2 2.5 4.0 2.4 3.6 Gross Investment* 16.9 23.2 8.7 16.3 22.0 Capital Stock 1.9 3.0 4.6 5.1 6.4

All figures refer to Total industry Excluding diamonds *for 1994 figures are estimates.

EXPORTS OF GOODS

Millions of U.S. $

(Current Prices)

1993 1994 Percentage Change

Agricultural exports 547 581 6.2 1. Citrus 121 126 4.6 2. Agricultural exports 426 455 6.8

excluding citrus

Industrial exports 13,193 14,915 13.1 1. Diamonds (net) 3,014 3,553 17.9 2. Industrial exports

excluding diamonds 10,179 11,362 11.6

Other 343 433 26.2 Total (net) 14,083 15,929 13.1

IMPORTS OF GOODS (GROSS)

Millions of U.S. $

(Current Prices)

1993 1994 Percentage Change

Consumer goods 2,532 3,046 20.3 Production inputs 14,391 16,215 12.7 Investment goods 3,577 4,510 26.1 Miscellaneous 18 4 -80.3 Total 20,518 23,775 15.9