Industrial exports fell by $400 million in July-August 2013, the Manufacturers Association of Israel reports, with high-tech exports leading the slump. Industrial exports in July-August were totaling $3.46 billion, 11% lower than in the second quarter. The report follows the revised Israel Export and International Cooperation Institute forecast that exports will stagnate this year, and warned that it might make a further downward revision.
The Manufacturers Association says that high-tech and mixed high-tech industries suffered the steepest drop in exports: chemical exports fell 20%, pharmaceuticals exports fell 30%, and electronics exports fell 16%. Total exports by these three sectors was $1.41 billion a month in July-August, $190 million less than the monthly average in the second quarter.
Exports of metals, food and beverages, jewelry, and textiles also fell in July-August, but exports of refined oil products and minerals rose sharply.
"The plunge in exports points to the drastic loss of Israel's competitiveness in foreign markets. This is serious, because the growth of Israel's economy, which is a small economy, depends on exports. When exports are hurt, economic growth is affected," said Manufacturers Association president Zvika Oren. He called on the government and the Bank of Israel to take urgent steps to help exporters and to "get exports back on track."
Published by Globes [online], Israel business news - www.globes-online.com - on October 9, 2013
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