The electronics industry, which lead exports in the past, saw exports drop 3-5% in the second quarter.
Only two manufacturing sectors increased their exports in the second quarter of 2008, compared with the preceding quarter. Pharmaceutical exports rose 44% and mineral and quarry industry exports rose 26%, according to a survey by the Manufacturers Association of Israel. On the other hand, exports by the electronics and electrical equipment sectors fell by 3-5%.
Together, the pharmaceutical and mining and quarrying industries had a weighted growth rate of 40% in the second quarter, compared with the preceding quarter. Part of this phenomenal growth was due to declines in exports by other industries. The Manufacturers Association attributes the growth of the mining and quarrying industry's exports to increased demand for fertilizers in Asia to meet demand for both food crops and biofuel crops.
Manufacturers Association Economics Division director Rony Ginel said, "Rapid growth by a small number of large companies is concealing the substantial drop in output by most manufacturers. In view of the severe blow to competitiveness of Israeli exports caused by the shekel's appreciation, we sought to explain why industrial exports were still growing. We increased the resolution to industrial sectors and found that just two industries were leading all exports."
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2008
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