Israeli exports fell 6% to $23 billion in dollar values in the first half of 2015, compared with the corresponding period last year, according to figures processed by the Israel Export and International Cooperation Institute. The Export Institute's economists attribute the decline mostly to the negative effect of lower global oil prices. When that factor is eliminated, exports were 1.5% higher.
An analysis by the Export Institute shows that despite the ongoing downtrend in Chinese imports, Israeli exports to China were up 10% to $1.2 billion, excluding exports of chemicals and minerals, which were affected in the first half of the year by oil prices, the prolonged strike at Israel Chemicals (TASE: ICL: NYSE: ICL) in the south, and a general drop in prices in these sectors.
Israeli exports to Turkey were down 34% to $960 million in the first half of the year, including a 25% slide in chemical exports to that country. The downtrend in exports to Russia also continued, with exports totaling $380 million in the first half of the year, 29% less than in the corresponding period in 2014.
The cause of the ongoing plunge in exports to Russia lies in the devaluation of the ruble against the dollar, the prolonged economic crisis in the country, and a steep fall in demand there. The decline in Israeli exports to Russia was particularly prominent in agricultural products, which account for 45% of Israel's exports to Russia. Israeli exports to India, on the other hand, jumped 43% to $640 million in the first half of the year. Exports to the US, a key destination for Israeli exports, were up 6% to $5.5 billion in the first half, due primarily to higher pharmaceutical exports, which account for a third of Israel's exports to the US.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2015
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