Drop in Israeli exports to Europe
Biggest decline since start of 2011 recorded in shipping of goods to Spain – one of Israel's top 10 export destinations
According to figures released by the Israel Export and International Cooperation Institute (IEICI), the exports of goods (excluding diamonds) to Portugal, Ireland, Greece and Spain (the PIGS countries) totaled some $695 million in the first half of 2011, compared to $800 million in the same period last year.
It should be noted that Israel's exports (excluding diamonds) rose by roughly 8% in the first half of the year, and that the export of goods to European Union countries went up by 16%.
The sharpest drop was recorded in the shipping of goods to Spain – one of Israel's top 10 export destination and the first among the PIGS countries. The exports to Spain in the first half of 2011 fell by 19%, totaling $408 million, compared to $590 million in the same period last year.
This decline stemmed mainly from the 25% drop in the export of chemicals and oil distillates – about $166 million compared to $222 million in the same period last year, and the 34% drop in the export of machinery and equipment by 34% - $72 million compared to $109 million in the same period last year.
Exports to Ireland totaled some $40 million in the first half of the year – a 6% drop compared to the same period last year. The main decline was seen in the export of chemicals and oil distillates – 50% (about $4 million). Meanwhile, a 71% rise was recorded in the export of machinery and equipment ($5 million) and a 48% increase was recorded in the export of textile products and clothing (reaching about $4 million).
Israeli exports to Greece, which is dealing with credit rating downgrades and extensive budget cuts, continue to shrink. During the first half of 2011, exports fell by 4%, totaling $113 million, compared to $117 million in the same period last year.
The overall drop in exports to Greece stems mainly from the 9% drop in the exports of chemicals and oil distillates to $50 million, compared to $55 million in the same period last year.
As opposed to the general trend, the first quarter of 2011 saw a 14% rise in exports to Portugal, which totaled $60 million. The rise stems from a 54% increase in the export of chemicals and oil distillates, reaching $31 million. The export of rubber and plastic went up by 35% to $7 million, and the export of medications rose by 62% to $5 million.
According to IEICI CEO Avi Hefetz, the PIGS countries' economic situation continues to affect the scope of Israeli exports to these countries. Over this period, he said, the euro gained strength against the dollar by 5.6% - increasing the drop in exports to these countries.
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