Eternity. Bracelet
Eternity Necklace
Diamond Studs

and which can
jump from five to more than eight ducts in Israel,
percent; 115,000 Israelis are now then be sold duty-free to the
European Economic Community.
out of work.
A number of moves may be In addition, a growing number of
companies will open new
made to bolster Israel's economy Israeli
abroad as the market for
within the next year, including markets
their
products
in Israel shrinks.
the following:
The austerity program will be Overall, I anticipate a rise in ex-
of ten percent and a five per-
extended and will remain in force ports
drop in imports. If these fi-
during most, if not all, of 1986. cent
are achieyed, it would mean
This means an extension of price gures
substantial reduction in the
and wage controls, with real a negative
balance of payments.
wages and the standard of living
Two major markets — Japan
both dropping.
China — will offer new oppor-
As a result of the continuing and
tunities
for Israeli entrepreneurs
freeze, pricers will remain steady. to sell their
goods and services.
Inflation will hover around four
It seems likely that four or five
percent or less per month.
government-owned companies
Additional layoffs will occur in will be sold to private investors.
government employment, and the The hope is that these enterprises
out-of-work rate is apt to reach — now relatively static — could
ten percent — a bitter pill to swal- flourish if they are operated by
non-
low.
aggressive,
Indexing — linking wage in- more
governmental managements.
creases to the cost of living — may
We can expect the United
be eliminated. This would be a States to continue to provide
positive step indeed, since index- funds to bolster Israel's economy
ing has escalated inflation.
through grants, rather than
Emphasis will continue to be through loans, as was usually the
placed on exports, particularly case in the past.
high-tech products. Helping in
A number of Israeli manufac-
this effort will be the Free Trade turers will suffer from the slow-
Agreement between the United down in their local market, and
States and Israel. Also, as U.S. some of them may close down.
companies begin to take advan- There will be a drive to convert at
tage of the FTA, we will see an least some of these plants into
increase in the number of Ameri- producers of high-tech products.
can firms that manufacture pro-

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