Israel Finance Ministry, State Revenue Administration

	Indicators of Economic Development, 1997-2001
	Resources and Uses, 1998-2000
	National Product and Income, 1998-2000
	Public Consumption, 1998-2000
	Gross Investment, 1998-2000
	The Balance of Payments, 1998-2000
	Population, Labor Force, and Employment, 1998-2000
	Selected Interest Rates, 1997-1999
	Monetary Indicators, 1997-1999

Table 1

Indicators of Economic Development, 1998-2002

				2001-2002^a
	1998	Est. 1999	Forecast 2000*	Target scenario**	Alternative scenario
Sources and uses	(real change)
Gross domestic product	2.2	2.0	3.0	4.2	3.3
Domestic business-sector product	2.2	1.6	3.3	4.8	3.8
Private per capita consumption	1.1	0.4	1.3	2.7	1.6
Public consumption excl. defense imports	1.5	3.0	1.9	2.0	2.0
of which Civilian consumption	1.9	3.3	2.6	2.4	2.4
Investment in fixed assets	-4.0	2.6	-2.6	3.0	2.0
Domestic uses	0.8	4.5	2.0	3.6	2.7
Exports of goods and services	6.3	7.0	9.5	8.0	7.4
Civilian imports	1.4	12.9	4.8	6.0	5.4
Balance of payments	(billions of current $)
Civilian imports	39.9	43.1	45.5	50.5	50.0
Exports	35.0	37.4	40.9	46.4	46.2
Civilian import surplus	4.9	5.7	4.6	4.1	3.8
Current account	-0.7	-1.3	-0.3	0.1	0.3
Current account (in GDP terms)	-0.8	-1.4	-0.3	0.1	0.3
Foreign currency reserves of Bank of Israel (end-year)^b	22.7	21.8
Population, employment, and prices	(real change, percent)
Immigrant arrivals during year ('000s)	57	60	60	60	60
Mean population growth	2.4	2.3	2.3	2.2	2.2
Unemployment rate (percent of labor force)	8.5	8.9	8.7	7.2	8.3
Rise in CPI during year^c	8.6	1.2
Employed Israelis, total	1.8	2.1	2.0	3.5	2.6
of which In business sector	0.2	1.3	2.2	3.9	2.6
Public sector	(percent of GDP)
Domestic deficit (planned) of government, excl. credit	2.4	2.0	2.5	1.8	2.0
Government domestic deficit, cash data	2.4	...

* The forecast for the year 2000 is based on the partial and interim statistics published by the Central Bureau of Statistics for 1999. The final figures may be significantly different.

** Contingent on economic reforms and fiscal policy (see Chapter 2) that will serve to accelerate the growth rate. This policy involves inter alia the reduction of the share of the public sector together with the easing of the tax burden, adhering to the provisions of the Budget Deficit Reduction Law, increasing infrastructure investment, and making the tax system more rational. The alternative scenario assumes adherence to the Budget Deficit Reduction Law, but no reduction of the tax rate. In accordance with the amended Budget Deficit Reduction Law, accelerated growth enables a steeper reduction of the deficit in the target scenario than in the alternative scenario.

a Average.

b In 1999, to end-September.

c In 1999, to end-September, annual rate.

Table 2

Resources and Uses, 1998-2000

	Current value 1998	Change over previous year (percent)
		Prices		Quantity
		Est. 1999	1998	1998	Est. 1999	Forecast 2000
	(NIS million)
Total resources	531,012	6.0	5.8	2.1	4.9	3.6
Gross domestic product	376,107	6.7	5.5	2.2	2.0	3.0
Imports of goods and services	154,905	4.5	6.6	1.7	11.9	4.8
of which Civilian imports	146,464	4.2	6.4	1.4	12.9	4.8
Total uses	531,012	6.0	5.8	2.1	4.9	3.6
of which Excl. direct defense imports	522,571	6.0	5.7	2.0	5.1	3.9
Private consumption	225,555	5.3	4.7	3.6	2.7	3.6
Public consumption	110,342	6.4	6.6	2.0	2.3	2.1
of which Excl. direct defense imports	101,901	6.2	6.2	1.5	3.0	1.9
Gross domestic investment	73,189	6.3	1.6	-8.0	12.3	-1.8
of which In fixed assets	75,367	6.0	6.4	-4.0	2.6	-2.6
Value of exports at domestic prices	121,926	6.8	9.8	6.3	7.0	9.5
Net payments to factors of production abroad	7,796	...	...	...	...	...
Gross national product	368,311	...	...	...	...	...
Gross business-sector product	249,960	6.9	6.2	2.2	1.6	3.3

Table 3

National Product and Income, 1998-2000

	Current value 1998	Real change over previouse year (percent) ^a
	Current value 1998	1998	Estimate 1999	Forecast 2000
	(NIS million)
Gross national product (market prices)	368,311	4.1	2.8	2.5
Depreciation	54,709	6.7	4.6	4.5
Indirect taxes on domestic production	53,946	2.7	3.7	4.0
Subsidies to domestic production	2,947	-4.0	-1.2	-1.5
Subsidy component of government loans	138	-30.7	-54.3	-24.2
National income	262,741	3.7	2.2	1.7
Depreciation in private sector	50,308	6.9	4.7	4.5
Public sectors domestic income from property	2,412	116.9	-152.4	-16.9
Income tax and bonds	54,962	3.1	1.0	3.5
National Insurance payments	22,613	4.7	4.3	4.5
Net current transfer payments	59,363	6.6	2.9	4.5
Private transfers from abroad	8,343	-0.9	11.5	2.0
Gross private disposable income from all sources	300,768	4.3	4.3	2.1
Gross private saving rate from all sources (percent)		25.0	26.1	25.1

a - In terms of purchasing power.

Table 4
Public Consumption, 1998-2000

	Current value 1998	Real change over previouse year (percent)
	Current value 1998	1998	Estimate 1999	Forecast 2000
	(NIS million)
Civilian consumption	75,442	1.9	3.3	2.6
Wages	50,863	0.8	2.8	2.5
Purchases	20,178	4.0	4.4	2.5
Depreciation	4,401	3.6	2.7	4.0
Net defense consumption	34,900	2.3	0.2	0.2
Gross domestic defense consumption	27,024	0.4	2.2	0.0
Wages	15,400	-0.2	0.1	0.0
Purchases, incl. construction	11,624	1.1	5.0	0.0
Direct imports	8,533	8.1	-5.9	1.4
Sales	657	-7.9	5.0	5.0
Total net public expenditure	110,342	2.0	2.3	1.9
Public consumption, excl. direct defense imports	101,809	1.5	3.0	1.9

Table 5
Gross Investment, 1998-2000

	Current value 1998	Real change over previouse year (percent)
	Current value 1998	1998	Estimate 1999	Forecast 2000
	(NIS million)
Gross investment	73,189	-8.0	12.3	-1.8
Change in inventory (percent of GDP)	-2,178	-0.7	1.4	1.4
Fixed assets	75,367	-3.9	2.6	-2.6
Residential construction	22,912	-6.7	-9.0	-2.0
Nonresidential investment	52,455	-2.7	7.6	-2.8
Shipping and aircraft	213	-75.3	1,254.0	-76.0
Nonresidential investment excl. shipping and aircraft	52,242	-1.5	2.5	2.6
Structures and earthworks	18,983	-4.2	-9.1	2.0
Equipment and machinery	25,341	2.9	9.4	-1.5
of which Imported	17,160	4.4	13.7	-1.5
Domestic production	8,181	-0.1	0.5	-1.5
Land transport equipment	5,872	-11.7	5.5	5.0
Intangible assets	2,046	7.8	16.0	15.0

Table 6
The Balance of Payments, 1997-1999

	1998	Estimate 1999	Forecast 2000
	(current $, billion)
Total exports	35.0	37.4	40.9
of which Capital income	2.8	2.8	2.8
Total civilian imports	39.9	43.1	45.5
of which Capital expenditure	3.7	3.2	3.2
Total defense imports	1.9	1.8	2.0
Goods and services
Civilian import surplus	4.9	5.7	4.6
Total import surplus	6.8	7.5	6.6
Net current transfers	6.1	6.2	6.3
Current account	-0.7	-1.3	-0.3
Capital transfers	1.8	1.6	1.6
Current account plus capital transfers	1.1	0.3	1.3

Table 7
Population, Labor Force, and Employment, 1998-2000

				Change over previous year (percent)
	1998	Estimate 1999	Forecast 2000	1998	Estimate 1999	Forecast 2000
	(000s)
Mean population	5,971	6,109	6,250	2.4	2.3	2.3
Working age population	4,244	4,354	4,450	2.8	2.6	2.2
Civilian labor force	2,269	2,326	2,368	2.7	2.5	1.8
Employed in business sector	1,640	1,656	1,693	0.5	1.0	2.2
Employed in public services	631	654	671	5.2	3.6	2.6
Total Israelis employed	2,077	2,120	2,163	1.8	2.1	2.0
Unemployed persons	192	206	205	11.1	7.3	-0.5
Percent
Working age/total population	71.1	71.3	71.2
Participation rate	53.5	53.4	53.5
Unemployment rate	8.5	8.9	8.7

Table 8
Selected Interest Rates,^a 1997-1999
(averages, annual rates, percent)

	1997	1998	1999 (Till August)
Credit lines and overdrawn demand deposits	20.8	18.3	19.4
Total nondirected local-currency credit	18.7	16.2	16.8
SROs	12.2	10.2	11.1
Yield to maturity on Treasury bills	14.1	12.3	12.8
Gross yield to maturity on 5-year indexed bonds	3.9	5.0	5.4

^a All interest rates are effective nominal rates, except for yields on bonds, which are real.
Source: Bank of Israel.

Table 9
Monetary Indicators, 1997-99^a

				Change (percent)
	Average reserves (NIS mill.)			Since beginning of year(to Sept, annual terms)		Over same period in previous year
	1997	1998	1999 to Sept.	1998	1999	1997	1998
M1	18,554	20,806	22,753	15.2	13.7	9.4	9.0
SROs and time deposits	93,491	112,810	136,152	19.6	26.4	22.2	22.5
M2 (incl. Treasury bills)	121,883	149,430	176,696	23.1	24.2	24.2	19.7
Deposits in and indexed to foreign currency^b	28,672	33,730	19,824	8.7	10.1	9.0	24.9
M3	148,341	181,179	215,559	21.2	21.9	22.0	21.5
Total assets in banks and Bank of Israel^c	299,520	345,850	396,290	12.2	10.3	15.1	16.8
Stocks and bonds	339,626	368,068	415,769	7.1	22.7	5.8	20.5
Total (6+7)	639,146	713,918	812,059	9.5	16.4	10.1	18.7
Total nondirected credit (10+11)	234,645	272,142	313,749	14.3	13.4	13.9	17.4
Unindexed and CPI-indexed credit	169,901	195,573	226,229	13.4	13.1	15.5	16.8
Credit in and indexed to foreign currency	64,744	76,570	87,520	16.7	14.2	9.9	19.1

^a Data are final to July, preliminary to September; items 1-5 and 9-11 are averages of daily data.
^b Including time deposits, resident and demand deposits, unrestricted deposits (individuals and corporations), and residents' nonresident deposits.
^c Including M3, restitutions deposits, savings schemes, earmarked deposits, and CPI-indexed long-term deposits.