Israel Told of Economic Lift in Immigrants

Israel’s largest bank predicted that Soviet immigration will sharply increase the Jewish state’s population and boost its economy in the long term.

“This large immigration will be of tremendous benefit to Israel in its economic, social and security aspects, even though it will be fraught with substantial temporary difficulties,” an economic report from Bank Hapoalim said.

The bank said economic growth, which was only 1.1% last year after a meager 1.7% in 1988, will accelerate dramatically under the impact of the new immigrants.

“Immigration will set the economy on a growth path of 6% a year during the next four years,” the report said.

The economic projections, which underline growing Israeli confidence, assume that military spending will remain stable and that Soviet immigration will hit unprecedented levels.

The Israeli budget presented less than two months ago provided for the arrival of 40,000 immigrants, although the government conceded at the time its figures were probably already out of date.