Governor of Bank of Israel Reforts on Country’s Economy in New York
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Governor of Bank of Israel Reforts on Country’s Economy in New York

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Israel’s trade balance improved by $44,000,000 or 36 percent in the first four months of 1965, Dr. David Horowitz, Governor of the Bank of Israel, declared here tonight. He was the principal speaker at a dinner meeting here of the national executive committee of the Israel Bond Organization.

Surveying the current economic situation in Israel, he reported that during the period from January I through April 30, imports decreased by $18,000,000 or 6.4 percent, while exports went up by $25.5 million, or 17.8 percent higher than the figure for the comparable period in 1964. He emphasized that “despite fears of a recession as a consequence of monetary restraints, the present year shows continued advances toward economic prosperity with output soaring and full employment.” Although tight money and a balanced budget are popularly believed to result in a recession, “this has never happened in Israel,” he declared.

Discussing the growth of exports, he pointed out that citrus sales, which dropped last year, made a strong recovery with an increase of 30 percent during the January through April period of the current year. The export of other agricultural products was up by 28.5 percent; industrial goods by 21.5 percent; and diamonds for industrial use, which represent the country’s number one export, increased by 5,5 percent during the first four months of 1965.

Dr. Horowitz pointed out that Israel’s economic recovery would be endangered by an excessive increase in consumption, explaining that increased local purchases which raise production for home consumption, tend to hamper expert trade. For this reason, he said, Israel is making a concerted effort to reduce consumption without lowering the standard of living. In 1964, he reported, the population of Israel rose by 96,000, bringing the total to more than 2,500,000. The number of wage and salary earners increased last year by 33,000 to a total of 800,000.

Dr. Horowitz added that the proceeds from the sale of Israel bonds in the United States and other parts of the free world had greatly stimulated the growth of Israel’s economy and that they had been of decisive importance in opening up new areas of development, in the exploitation of natural resources, and in the absorption of large numbers of immigrants. Various aspects of the Israel bond campaign were discussed by Abraham Feinberg, president of the Israel Bond Organization; Dr. Joseph J. Schwartz, vice-president, and Samuel Rothberg, national campaign chairman.

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