It envisages 1.9 percent reduction in public spending over the next two years, a 5.8 percent decrease in invesment and a 12 percent rise in exports, but a two percent decline of living standards in each of the next two years.
According to the plan, rapid economic growth will be resumed in 1987 when the gross national product will begin to rise at an annual rate of 5.5 percent until 1990. In this period, exports are expected to rise at an average annual rate of 13.6 percent and industrial output by seven percent annually. The prognosis is based on the assumption that subsidies for exports and basic commodities will be eliminated.
The program was prepared by the Economic Planning Authority which Yaacobi heads. Yaacobi, a Laborite, told reporters he hoped the government would adopt it despite the fact that the chief economic portfolios are held by Likud ministers. The grave economic situation demands a cohesive economic program, not a system of extinguishing fires here and there, Yaacobi said.
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