Israel Finance Ministry, State Revenue Administration

	Indicators of Economic Development, 1997-2001
	Resources and Uses, 1997-99
	National Product and Income, 1997-1999
	Public Consumption, 1997-1999
	Gross Investment, 1997-1999
	The Balance of Payments, 1997-1999
	Population, Labor Force, and Employment, 1997-1999
	Selected Interest Rates, 1996-1998
	Monetary Indicators, 1996-98

Table 1

Indicators of Economic Development, 1997-2001

2000-2001^a
	1997	Est. 1998	Forecast 1999*	Target scenario	Alternative scenario
Sources and uses^b	(real change)
1. Gross domestic product	2.2	1.6	2-2.5	4.0	3.1
2. Domestic business-sector product	1.9	0.9	1.9-2.4	4.8	3.5
3. Private per capita consumption	1.5	1.2	0-0.7	2.4	1.2
4. Public consumption excl. defense imports	1.4	2.2	2.2	1.6	1.9
of which Civilian consumption	2.1	3.1	2.5	1.8	2.2
5. Investment in fixed assets	-3.2	-4.8	-3.3	1.7	0.3
6. Domestic uses	1.1	1.5	1.6	3.7	2.9
7. Exports of goods and services	7.2	3.1	4.6-6.1	6.6	6.2
8. Civilian imports	2.6	2.0	2.9	5.4	4.6
Balance of payments	(billions of current $)
9. Civilian imports	42.4	41.8	43.1	48.3	47.8
10. Exports	32.2	33.9	35.9	40.5	40.4
11. Civilian import surplus	9.5	7.9	7.1	7.8	7.4
12. Current account	-3.2	-2.2	-1.7	-1.7	-1.5
13. Current account (in GDP terms)	-3.3	-2.2	-1.8	-1.6	-1.5
14. Foreign currency reserves of Bank of Israel (end-year)^c	20.3	21.7
Population, employment, and prices	(real change)
15. Immigrant arrivals during year ('000s)			60	60	60
16. Mean population growth	2.5	2.4	2.3	2.3	2.3
17. Unemployment rate (percent of labor force)	7.8	9.1	9-9.3	8.3	8.9
18. Rise in CPI during year^d	9.0	5.4
19. Employed Israelis, total	1.4	1.1	2.1	3.6	2.9
of which In business sector	2.4	0.1	2.1	4.4	3.4
Public sector	(percent of GDP)
20. Domestic deficit (planned) of government, excl. credit^e	2.8	2.4	2.0
21. Government domestic deficit, cash data,	2.8

* The forecast assumes GDP growth of 2.5 percent, as was the basis of the budget. Developments since then have made it more probable that the rise in exports, private consumption, and the growth rate will be smaller, and that the unemployment rate will be higher.

Contingent on economic reforms and fiscal policy 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.

a Average.

b At 1995 prices.

c In 1998, to end-September.

d In 1998, to end-September, annual rate.

e The deficits planned under the Budget Deficit Reduction Law for the years 2000 and 2001 are 1.75 and 1.5 percent of GDP respectively.

Table 2

Resources and Uses, 1997-99

	Current value 1997	Prices Change		Quantity Change		1999
	(NIS million)	1997	Est. 1998	1997	Est. 1998	1999
Total resources	489,658	7.4	5.9	2.4	1.8	2.6
Gross domestic product	338,321	9.0	6.4	2.2	1.6	2.5
Imports of goods and services	151,337	3.9	5.1	2.6	2.4	2.8
of which Civilian imports	143,536	3.6	4.6	2.6	2.0	2.9
Total uses	489,658	7.4	5.9	2.4	1.8	2.6
of which Excl. direct defense imports	481,857	7.3	5.8	2.4	1.7	2.7
Private consumption	209,328	7.9	4.1	4.0	3.6	3.1
Public consumption	99,480	8.2	7.0	1.5	2.8	1.9
of which Excl. direct defense imports	92,349	8.1	6.6	1.4	2.2	2.0
Gross domestic investment	73,694	6.4	4.9	-6.6	-5.9	-3.4
of which In fixed assets	73,027	6.8	5.5	-3.2	-4.8	-3.3
Value of exports at domestic prices	107,156	6.1	8.8	7.2	3.1	4.8
Gross national product^a	329,526			3.0	3.6	1.7
Gross business-sector product	224,281	9.3	6.3	1.9	0.9	2.4

a As GNP is used to calculate disposable income, the change in quantity is presented in real terms (adjusted for consumer prices).

Table 3

National Product and Income, 1997-1999

	Current value	Real change over previouse year (percent) ^a
	1997	1997	Estimate 1998	Forecast 1999
	(NIS million)	%
1. Gross national product (market prices)	329,526	3.0	3.6	1.7
2. Depreciation	49,073	6.1	9.9	5.0
3. Indirect taxes on domestic production	50,280	6.1	2.5	2.5
4. Subsidies to domestic production	4,316	-2.0	-8.8	-5.9
5. Subsidy component of government loans	189	-40.6	-22.8	-20.7
6. National income	234,678	1.6	2.2	0.7
7. Depreciation in private sector	44,742	6.3	10.3	5.0
8. Public sector's domestic income from property	2,003	-39.2	35.5	1.5
9. Income tax and bonds	50,253	12.5	4.4	2.9
10. National Insurance payments	20,486	9.1	6.4	2.9
11. Net current transfer payments	52,317	6.7	8.6	4.0
12. Private transfers from abroad	13,408	3.5	-6.0	5.0
13. Gross disposable income from all sources	272,403	1.5	3.4	1.7
14. Gross private saving rate from all sources (percent)		23.2	23.0	22.3

a - In terms of purchasing power.

Table 4
Public Consumption, 1997-1999

	Current value	Real change over previous year (percent)
	1997		Estimate	Forecast
	(NIS million)	1997	1998	1999
Civilian consumption	67,544	2.1	3.1	2.5
Wages	45,561	2.4	2.4	2.3
Purchases	17,652	1.1	4.3	2.4
Depreciation	4,331	4.3	4.3	3.5
Net defense consumption	31,936	0.2	2.3	0.8
Gross domestic consumption	24,805	-0.4	-0.2	1.2
Wages	14,233	-0.2	-1.2	0.0
Purchases, incl. construction	10,572	-0.7	1.0	2.7
Direct imports	7,801	2.2	9.8	1.0
Sales	670	-0.3	4.8	0.0
Total net public expenditure	99,480	1.5	2.8	2.1
Public consumption, excl. direct defense imports	91,679	1.5	2.2	2.2

Table 5
Gross Investment, 1997-1999

	Current value 1997 (NIS million)	Real change over previous year (percent)
			Estimate	Forecast 1999
		1997	1998	Forecast 1999
Gross investment	73,694	-6.6	-5.9	-3.4
Change in inventory (percent of GDP)	667	0.2	0.0
Fixed assets	73,027	-3.2	-4.8	-3.3
Residential construction	23,176	0.2	-8.5	-6.6
Nonresidential investment	49,851	-4.6	-3.1	-1.9
Shipping and aircraft	842	8.6	-77.8	0.0
Nonresidential investment excl. shipping and aircraft	49,009	-4.8	-1.8	-1.9
Structures and earthworks	19,689	-3.6	0.5	-4.0
Equipment and machinery	23,057	-3.1	-0.9	-1.0
of which Imported	15,187	-3.1	-0.2	-1.0
Domestic production	7,870	-3.0	-2.4	-1.0
Land transport equipment	6,263	-13.3	-11.1	0.9

Table 6
The Balance of Payments, 1997-1999

	1996		Estimate	Forecast
	1996	1997	1998	1999
	(current $, billion)
Total
Exports	30.8	32.9	33.9	35.9
Civilian imports	42.1	42.4	41.8	43.1
Defense imports	1.7	1.8	2.0	2.0
Goods and services
Civilian import surplus	11.3	9.5	7.9	7.1
Total import surplus	13.0	11.3	9.8	9.1
Net unilateral transfers	7.9	8.0	7.7	7.4
of which Public sector and nonprofit institutions	4.0	4.1	4.1	4.0
Private sector	3.9	4.0	3.5	3.4
Current account	-5.1	-3.2	-2.2	-1.7

Table 7
Population, Labor Force, and Employment, 1997-1999

				Change over previous year (percent)
	1997	Estimate	Forecast			Estimate	Forecast
	1997	1998	1999	1996	1997	1998	1999
	(thous)
Mean population	5,827	5,967	6,105	2.5	2.5	2.4	2.3
Working age population	4,129	4,243	4,329	3.0	2.7	2.7	2.3
Civilian labor force	2,210	2,271	2,313	2.2	2.5	2.8	2.1
Employed in business sector	1,632	1,636	1,651	3.9	1.4	0.2	1.4
Employed in public services	600	618	627	2.3	3.1	3.0	2.1
Total Israelis employed	2,040	2,059	2,097	2.4	1.4	0.9	2.1
Unemployed persons	172	208	216	-0.6	19.4	21.2	2.3
	(percent)
Working age/total population	70.9	71.1	71.1
Participation rate	53.5	53.5	53.4
Unemployment rate	7.8	9.1	9-9.3

Table 8
Selected Interest Rates,^a 1996-1998
(averages, annual rates, percent)

	1996	1997	1998
	1996	1997	Till August	Jan- Jun	July- Aug
Credit lines and overdrawn demand deposits	23.0	20.8	18.6	19.1	17.1
Total nondirected local-currency credit	20.7	18.7	16.5	17.0	14.9
SROs	13.8	12.2	10.4	10.9	9.0
Yield to maturity on Treasury bills	15.6	14.1	12.3	12.8	10.8
Gross yield to maturity on 5-year indexed bonds	4.4	3.9	5.2	5.2	5.1

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

Table 9
Monetary Indicators, 1996-98^a


	Average reserves (NIS mill.)			Change (percent) Since beginning of year(to Sept, annual terms)		Change (percent) Over same period in previous year (Sept)
	1996	1997	1998 til Sept.	1997	1998	1997	1998
1. M1	16,238	18,554	20,369	16.8	19.1	13.4	15.8
2. SROs and time deposits	72,478	93,491	110,723	25.4	18.5	25.2	20.6
3. M2 (incl. Treasury bills)	96,875	121,883	146,909	24.3	20.9	23.6	22.3
4. Deposits in and indexed to foreign currency^b	23,662	28,672	31,859	17.8	20.7	23.1	15.9
5. M3	118,426	148,341	176,591	23.4	21.4	23.8	21.2
6. Total assets in banks and Bank of Israel^c	257,395	299,520	337,601	11.4	12.7	13.8	15.2
7. Stocks and bonds	266,018	339,658	360,749	39.2	0.5	37.6	-0.6
8. Total (6+7)	523,413	639,178	698,349	25.1	6.3	25.5	6.7
9. Total nondirected credit (10+11)	198,439	234,645	264,143	16.8	15.8	17.5	15.5
10. Unindexed and CPI-indexed credit	149,519	169,901	190,820	10.2	13.6	12.1	15.7
11. Credit in and indexed to foreign currency	48,920	64,744	73,323	36.8	21.7	33.6	15.1

^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.