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Standstill in Israel’s Economic Growth Reported by Bank of Israel

The Bank of Israel issued a report today stating that 1960 was a period of standstill in Israel’s economic growth in contrast to the 1959 year.

David Kohav, the bank’s research director, told the press that “negative factors” affecting Israel’s economic growth apparently had continued in the first five months of 1961. He said that while 1959 was a year of great expansion in production, resulting in a stabilization of prices and increases in exports, the 1960 increase in output was much slower. At the same time, an increase in consumption in 1960 brought an increase imports and a consequent increase in Israel’s trade imbalance.

The bank’s principal recommendations were based on the fact that there was practically-full employment in Israel. The bank therefore urged the Government not to rush into quantitative expansion of output at all costs. Instead, the bank proposed, the Government should take measures to increase efficiency in existing plants. The bank also argued for restraints in consumption and a limitation against further increases in imports.

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