Major destinations: Brazil, India
צילום: לע"מ
Export Institute has grim forecast for 2011
Director says global unemployment, shekel's increase in value will slow export growth by 50%
The Israel Export and International Cooperation Institute is predicting that export growth will decline by 50% in 2011, Director Ami Erel told exporters gathered for an annual meeting in Tel Aviv on Sunday.
Growth predicted for the end of 2010 is 18-20%, but the institute says that in 2011 the global economy will hit a rut, causing exports from Israel to increase by just 8%.
Erel cited global unemployment, failing government incentives for growth, and the shekel's increase in value when compared to the countries Israel trades with as the reasons behind the dismal forecast.
In addition, Erel said, Israeli exporters are encountering more and more competition for their products abroad.
In an evaluation of export destinations in 2010, Brazil constitutes the leader in growth, with exports to the country reaching a record-breaking $452 million, 75% more than the same period in 2009.
Second is South Korea, with exports reaching $443 million or 31% growth from the previous year. Third is India, and fourth is China.
Erel said the institute would work to help Israeli exporters establish themselves in the leading markets with a program devised by the Industry, Trade and Labor Ministry.
"The Shavit program is being activated in China, India, and Brazil with an emphasis on business development and creating relevant opportunities for exporters, with the aim of maximizing the potential for exports to Asia and South America. In 2011 the institute plans to expand the Shavit program to Mexico and South Korea," he said.
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