U.S. Department of Commerce Predicts Upswing in Israel Economy in 1968

The U.S. Department of Commerce believes that Israel’s economic growth which slowed down in 1966 and 1967, will pick up momentum in 1968 with the result that Israel will export more and will improve as a market for imports of consumer goods and capital equipment from America. This assessment is contained in an article in “International Commerce,” a weekly publication of the Bureau of International Commerce of the Department of Commerce.

According to Raymond S. Yaukey, of the BIC’s Near East-South Asia division, the downtrend in Israel’s economic growth reached bottom and began a gradual rise in late 1967. The nation’s current economic plans call for annual industrial production to grow from the $2.2 billion comprising 22 percent of Israel’s gross national product in 1966 to $3.6 billion or 27 percent of the GNP by 1971. Industrial exports are to rise even more rapidly from $400 million in 1966 to $800 million in 1971. The plan envisages total investments in industry amounting to over $1 billion during the five-year period, up to half of which is to come from foreign sources, Mr. Yaukey wrote. “The growth targets it (Israel) has set should pave the way for increased U.S. sales of the industrial machinery and capital equipment that will be needed in this effort.”

Mr. Yaukey noted that the U.S. share of Israel’s imports has held fairly close to 25 percent in recent years and believes it will continue to hold despite devaluation of the Israel pound which gives a price advantage to the sterling bloc. He noted in this connection a decided preference for U.S. products in Israel and the “record dollar proceeds from U.S. remittances and Israel Bond sales in the U.S. (totalling over $600 million in 1967) which serve to underscore the prominence of the United States as a supplier in the eyes of Israeli buyers.”