An analysis of Israel's potential for future economic growth without further external financial support. Distinctive elements in the history of Israel's economy help explain her two decades of remarkable growth performance: growth and composition of the immigrant population, sources of investment finance, and the motivation of the people. Following the 1960-1965 period of prosperity, however, the sustained, rapid growth came to an end. The current account payments deficit fell appreciably during the recession, but when the economy recovered and expanded rapidly following June 1967, there was another upsurge in the payments deficit. The fundamental reason for much of the renewed deficit is analyzed as a structural weakness in the Israeli economy, which creates a major dilemma in the tradeoff between rapid growth and reduction of the balance-of-payments deficit. A summary of national accounts projections through 1980 is included. 97 pp
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