Economists Predict Israel’s Continued Economic Growth at 11% Annual Rate

Israeli economists predicted today that the national economy may continue to grow at the spectacular rate of 11 percent a year without impairing price stability, though there may be a moderate rise in Israel’s foreign trade deficit. The economists are preparing a forecast for 1969 which is being drawn up jointly by the Central Bank of Israel and the Treasury. They said prices may rise next year, but not by more than 3 percent, which is normal for the average Western country. The foreign trade deficit, which amounts to $600 million this year, may however, go up to $650 million in 1969, they said.

The Bank of Israel reported a spurt in building between July and September, 1968, owing to increased immigrant housing needs, but a slowdown in production and employment during the months of October and November. According to the report, public housing construction was up 80 percent over the corresponding period of 1967. However, employment was down slightly and currency in circulation was reduced somewhat owing to tighter credit regulations imposed by the hank earlier this year.