Israel's exports to Portugal, Ireland, Greece, and Spain (the PIGS) fell sharply in the third quarter of 2010. An analysis of Central Bureau of Statistics figures by the Israel Export and International Cooperation Institute found that exports of goods to Greece fell 50%, exports to Ireland fell 12%, exports to Portugal fell 12%, and exports to Spain fell 9%.
The Export Institute attributes the bleak figures to the debt crises in Ireland, Portugal, and Greece, and signs that they will spread to other countries. Export Institute director general Avi Hefetz said, "There is no doubt that the drop shown in the data was affected by reductions in inventories and cautionary measures due to the crisis in the domestic markets and the higher risk to sales in these markets."
The Export Institute said that Israeli exports to the PIGS fell by 17.3% in dollar terms to $299 million in the third quarter from $361 million in the corresponding quarter. The Export Institute added that a contributing factor to drop in exports, in dollar terms, was the 10% drop by the dollar against the euro, which exacerbated the drop in exports to the PIGS.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2010
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