Publications"; $toptitle1a="Bank of Israel Annual Reports"; $toptitle1b="Bank of Israel Annual Report - 1999"; $toptitle2="The Israeli economy- Main economic indicators 1999"; ?>
The Israeli economy- Main economic indicators 1999

Resources and use of resources
Prices
Balance of payments
Public sector
Employment and wages
Indicators of business sector- product by industry
Money and finance



Resource and Use of 
Resources(1)
Percent
change


NIS billion
(1999 prices)
Percent
of GDP


1998
1999
1999
1998
1999
Resources
Gross domestic 
product
2.2
2.2
409.2
100.0
100.0
Imports of goods and 
services
1.7
14.4
189.8
41.2
46.4
    of which: civilian
1.4
14.7
179.9
38.9
44.0
Total resources(2)
2.1
5.8
599.1
141.2
146.4
Use of Resources
Private consumption
3.6
3.3
246.8
60.0
60.3
Public consumption
2.0
3.9
121.1
29.3
29.6
   excl. direct defense 
            imports
1.5
3.4
111.2
27.1
27.2
Gross domestic fixed 
investment
-4.0
1.5
81.4
20.0
19.9
   of which: Business
                    sector  
-4.6
9.1
51.3
11.7
12.5
                    Residential
                    buildings
-6.7
-10.0
21.6
6.1
5.3
Domestic use of 
resources(2)
0.8
4.5
440.5
106.5
107.6
Exports of goods and 
services
6.3
9.7
148.6
32.4
36.3
Total use of 
resources(2)
2.1
5.8
599.1
141.2
146.4
Gross business-sector 
product
2.2
1.8
273.9
66.5
66.9
GNP at market prices
398.5
97.8
97.4
National income
282.1
69.7
68.9
National income per 
capita
(NIS thous.)
46.1
GDP( $ billion ) 
98.9
98.8
GDP per capita
($ thous,1999 prices)
16.6
16.1


Prices
1997
1998
1999

(Percent , annual)
Inflation target
7-10
7-10
4.0
Inflation rate
7.0
8.6
1.3

(Annual average)
Consumer Prices Index 
(CPI)
9.0
5.4
5.2
Excl. housing
8.4
5.3
6.0
Wholesale prices
6.3
4.2
7.1
Business-sector 
Product prices (gross)
8.9
6.9
7.6
Exchange rate( 3)
4.3
9.6
8.3
Export prices
6.3
6.8
11.1
Import prices(2)
4.1
4.2
7.2
Wages per employee 
post
(nominal)
11.6
7.7
7.6


Balance of Payments


$ billion
(current prices)


Percent
of GDP
1997
1998
1999
1998
1999
Exports
33.2
35.0
38.6
35.5
39.2
Civilian imports
41.2
40.1
45.5
40.6
46.2
Defense imports
1.8
1.9
2.1
1.9
2.1
Import surplus
9.7
7.0
9.0
7.1
9.1
Civilian import surplus
8.0
5.1
6.9
5.2
7.0
Current transfers
6.2
6.1
6.4
6.2
6.5
Total current account
-3.5
-0.8
-2.6
-0.9
-2.6
Capital transfers
2.2
1.8
1.7
1.8
1.7
Current account and
capital transfers
-1.3
0.9
-0.9
0.9
-0.9
Financial account
(excluding BOI)
9.4
1.5
3.1
1.5
3.2
of which : Direct and 
                  equity investment
3.6
2.4
3.7
2.4
3.8
                  Foreign direct 
                  investment
1.6
1.9
2.3
1.9
2.3
External debt
(end of period)
Net
14.5
11.6
10.9
12.4
10.9
Gross
51.5
54.6
57.5
58.6
57.4
Foreign reserves
(Central Monitary 
Institutions)
20.8
23.3
23.3
25.0
23.1


Public Sector
(percent of GDP)
1997
1998
1999
Total expenditure
54.0
54.3
54.4
Domestic demand
30.4
30.5
30.1
Domestic civilian 
consumption
20.0
19.8
19.8
Domestic defense 
consumption
7.3
7.1
7.2
Investment
3.1
3.5
3.1
Transfer payments
14.6
14.5
14.7
Interest  payments
4.4
4.5
4.3
External expenditure
3.6
3.9
4.5
Total revenue
49.9
50.7
49.7
Domestic
45.0
45.3
44.4
of which:Taxes(4)
40.4
40.1
40.3
Unilateral transfers
3.3
3.4
3.4
Interest income from 
abroad
0.8
1.1
1.0
Total deficit (-)
-4.1
-3.6
-4.8
 of  which: Excluding BOI 
                   profit
-3.9
-4.0
-4.0
                 Domestic
-5.4
-5.0
-5.5
Total net public debt
88.3
88.3
87.8
Of  which :Domestic
83.0
83.8
83.7
                  External
5.4
4.4
4.2
Central government 
deficit target
2.8
2.4
2.0
Central government 
deficit
2.7
2.4
2.2
Of  which: Domestic
3.1
2.9
3.0
Rate of National Saving & 
Investment (1,5)
Gross saving
16.9
17.4
16.4
General government
-1.1
-1.0
-2.3
Private
18.0
18.4
18.7
Gross investment
20.2
18.1
18.8
Current account balance
-3.3
-0.7
-2.4


Employment and 
Wages
Percent change     
1998
1999
1999

(thousands)
Mean permanent 
population
2.4
2.5
6121.2

Working-age 
population
2.7
2.7
4358.4

Total employment(6)
1.9
3.1
2362.1

of which: Business 
                  sector
0.7
3.1
1710.4

                 Public 
                  sector  
5.1
3.1
651.8

Employment of 
Israelis
1.5
3.1
2136.6

of which: Business 
                  sector
0.2
3.1
1490.8

                 Public 
                  sector
4.9
3.2
645.8

Immigration (7)
-15.4
29.3
51.6

Participation rate in 
labor force(%)
53.4
53.8
Unemployment rate 
(%)
8.6
8.9
Real wage per 
employee Post( 8)
2.2
2.2
4543.9

         Business sector
3.0
3.4
4638.5

         Public sector
0.4
-0.3
4336.4

Unit labor cost in 
business sector
0.1
2.1


Indicators of 
Business-Sector 
Product,
by Industry1,9
Industrial   
composition
Percent
change


1999
1998
1999
Manufacturing
28.8
2.6
1.7
Agriculture
2.8
14.1
-5.9
Transport and 
communications
12.6
9.5
5.9
Construction
8.8
-5.8
-10.7
Water and electricity
2.6
5.3
1.2
Commerce and 
services
53.4
6.7
5.4
Imputed banking 
services
-2.9
Errors and omissions
-6.1
Total business-sector 
product
100.0
2.2
1.8


Money and 
Finance
Monetary and 
Credit 
Aggregates(10)
Percent
Change


1997
1998
1999
1998
1999
Money supply (M1)
18.6
20.8
23.2
12.1
11.4
Unindexed assets 
(M2)(11)
121.9
149.4
180.8
22.6
21.0
Unindexed credit
84.0
97.7
115.2
16.3
18.0
Total non-directed 
bank credit to the 
public
241.3
279.7
329.7
15.9
17.9
Interest rates (12)
Bank of Israel 
interest rate(13)
14.7
12.5
12.8
Expected 
inflation(14)
9.1
6.1
5.1
Interest on 
overdraft facilities
20.8
18.3
19.0
Yield to maturity 
on 10-year 
government bonds
4.1
4.9
5.2





Footnotes

1) Based on Central Bureau of Statistics data. All rates of changes are annual.
2) Excluding direct defense imports.
3) Against the currency basket, a positive figure indicates depreciation.
4) Including property taxes.
5) The denominator is GNP + unilateral transfers. Investment excluding transfers
     on capital account. Current account balance includes additional capital transfers.  
6) Including non-Israeli employees.
7) In 1999, calculation based on the first 9 months of the year.
8) Percent change in real term deflated by the CPI (base 1994) incl. labor from Judea, Samaria and foreign workers.
9) Business sector product measured by final use is more reliable than by industry indicators.
10) NIS billion monthly averages.
11) Including treasury bills.
12) Interest rates:monthly averages of annualized rates in percentage points.
13) Effective annualized nominal interest rate on daily deposit auctions at the Bank of Israel.
14) Derived from yield difference on indexed and unindexed bonds.