Export Institute: Small Israeli exporters collapsing

70% of small exporters stopped exporting or substantially reduced their activity between 2007 and 2011.

Analysis by the economics division of The Israel Export and International Cooperation Institute reveals a worrying picture of Israeli exports: 70% of small exporters stopped exporting or substantially reduced their activity in the period 2007-2011. The Export Institute explains the trend by the continuing crisis in the global economy.

According to the Export Institute's figures, of 3,856 exporters that exported goods worth more than $100,000 in 2007, some 1,900 are small exporters (exporting to a value of $100,000-$2,000,000) that have been compelled by the situation on world markets to cut back their activity or halt it altogether. 30% of the exporters registered a rise in export volumes during this period.

Despite these gloomy statistics, between 2007 and 2011 the total value of exports rose by more than 30%, from $35 billion in 2007 to $47 billion in 2011.

The Export Institute explains the contradiction by the fact that in the past four years exports have been led by a small number of companies, among them Israel Chemicals, Intel, Teva, Makhteshim-Agan, Oil Refineries, Elbit Systems, Israel Aerospace Industries, and Iscar.

Export Institute chairman Ramzi Gabbay said that the figures reflected the daily difficulties that Israeli exporters were coping with. "The continuing crisis in the global economy is causing a decline in demand and in international trade. This is alongside continuing erosion of the real exchange rate, which hits profitability hard," he said, adding, "Besides all this, exporters are operating in a difficult competitive environment which has become a palpable threat to Israeli exports."

Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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