Israel’s economy is analyzed in a report issued here today by the United Nations, showing that the domestic economy of the Jewish State is becoming stronger. At the same time, the report reveals that the country’s official debt in foreign exchange is also increasing. The report, entitled “Economic Developments in the Middle East: 1957-1958, ” will serve as a guide to the Economic and Social Council which convenes at Geneva June 30.
Every important phase of Israel’s domestic economy has shown improvement in the periods covered by the report. Industrial output rose in 1957 by 11 percent, compared with the previous year. Output of manufacturing and mining industries in Israel moved upward in 1957 and 1958 at the rate of 12 percent annually. The gross value of total output, at 1957 prices, went up by 12 percent. Employment in industry rose by about 4 percent in 1957 and about 5 percent in 1958. At the same time, the report notes, there has been a rise in productivity per worker.
Gross investment in Israeli industry rose in 1957 to an estimated 123,000,000 Israeli pounds, compared with 112,000,000 pounds in 1956. Even in agriculture, there have been notable increases, despite the fact that the rainfall was low in 1958 and there was a severe drought last winter. There was an overall increase of 12 percent in Israel’s farm output in 1958 over 1957, the compensating factor having been a rise in the output of fruits and dairy products.
Israelis are eating better and more than ever, the survey shows — and are far ahead in daily food consumption as compared with Egypt. An Israeli consumed in 1955-1956 an average of 1,723 grammes of food per day, compared with 1,194 consumed daily per capita in Egypt during the period. In number of calories in that period, Israelis consumed 2,880 calories per day per person, while Egyptians consumed 2,590 calories.
COST OF LIVING REPORTED RISEN; FOREIGN AID LISTED
The cost of living, however, has risen in Israel. The survey shows cost-of-living only for the cities of Haifa, Jerusalem and Tel Aviv. The figures show that cost for all items in those cities rose from an index figure of 112 in 1954 to 119 in 1955, 135 in 1957, and 139 in 1958. The index is based on 1953 costs.
When it comes to foreign trade, however. Israel’s trade gap — the difference between the value of exports and the value of imports — is continuing its year-long rise. Dy 1957, the gap had fallen slightly, going down to $337,000,000, a decrease of $19,000,000 as compared with 1956. Israel’s exports amounted to a value of $48,000,000 in 1958, but at the same time she imported $307,000,000 worth of goods from abroad.
In that connection, the study shows the amounts of money Israel received from abroad to offset the trade gap. In 1957, Israel received what the report calls “private donations” of $97,000,000 plus $45,000,000 from the sale of Israel bonds. So-called “official donations” were much higher, These included $121,000,000 from West German reparations and restitutions; $24,000,000 from United States grant-in-aid and technical assistance; and $20,400,000 in American loans for the purchase of United States agricultural surpluses, During that year, also, Israel repaid $11,400,000 on older loans owed to the U.S. Export-Import Bank.
Israel’s official debts in foreign exchange also keep going up. These debts, guaranteed by the Israel Government, rose from $450,000,000 at the end of 1955 to $501,000,000 at the end of 1956, mainly as a result of the sale of Israel bonds and borrowing from the United States. The report adds: “If the net rise of indebtedness during 1957 and 1958 is added, the debt would have reached $567,000,000 at the end of 1957 and, provisionally, $651,000,000 at the end of 1958.”
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
