Israel’s economy during 1961 was marked by full employment and a nine percent increase in the gross national product, on the one band, and by the steepest increase in prices in five years and an unprecedented rise in the country’s trade deficit, on the other, it was disclosed here today in the annual report issued by David Horowitz, governor of the Bank of Israel.
During the year, when Israel’s population increased by 82,000, mainly from mass immigration, the gainfully employed rose 4.7 percent with the demand for skilled workers in some sectors of the economy exceeding the supply. Private consumption, which increased by 10 percent during the year, was marked by a high demand for automobiles and other durable goods.
Along with the economic growth, there was during the year an eight percent increase in prices over the 1950 level which was the highest since the establishment of the State. Also on the negative side was an increase in the trade deficit from $334,000,000 to $402,000,000.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
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.
