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Q2 of 2012: exports to Europe down 14%
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Q2 of 2012: exports to Europe down 14%
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Q2 of 2012: exports to Europe down 14%
Q2 of 2012: exports to Europe down 14%
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Port2port News Service
Aug 16, 2012
The Export Institute predicts further stagnation in exports for the year as a whole, due to severe global economic crisis, especially in Europe
The Israel Export and International Cooperation Institute reported last week that Israeli exports of goods to Europe were down 14% in the second quarter of 2012 compared with the corresponding quarter of 2011.
According to the IEICI total exports to Europe fell 7.5% to US$11.2 billion in the second quarter from US$12.1 billion in the corresponding quarter.
The Export Institute predicts further stagnation in exports for the year as a whole, due to severe global economic crisis, especially in Europe, which is reducing demand.
Israeli exports to the US totaled $2.5 billion in the second quarter. Exports to Asia increased by 17% in the second quarter compared with the corresponding quarter.
Export Institute chairman Ramzi Gabbay noted that, "The export figures are worrying, and if the situation continues, Israeli exporters will be forced to reduce or even shut down production lines, or move them overseas. Low demand in Israel's main target markets in the EU, which accounts for 30% of exports, is creating a real threat for us."
Gabbay added that the Ministry of Finance and Ministry of Industry, Trade and Labor to create effective infrastructures of action for exporters that includes exposure to new markets and establishing footholds in them.
Gabbay noted that "Tools should be provided to exporters to help save Israeli exports, and a NIS 200 million marketing fund should be established to remove export barriers and deepen activity in all markets. The problem is among small and mid-sized exporters, which are struggling to overcome the lack of demand on one hand and higher production costs on the other. Every $1 billion drop in exports costs Israel 9,000 jobs. We must not allow this deterioration."
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