Manufacturers fear for exports to US
US credit rating downgrade, dollar's expected depreciation likely to affect Israeli exporters' revenues
Shraga Brosh, president of the Manufacturers' Association of Israel, estimated this week that the expected depreciation of the US dollar would also impact the exporters' revenues.
Brosh fears that the arrangement reached last week to handle the US debt ceiling crisis would lead to a tax increase, which would reduce the disposable income of American citizens and companies along with the demand for products imported from Israel.
In addition, an increase in long-term interest in the US, followed by another increase in the Bank of Israel's interest rate, will lead to a rise in the funding expenses of Israeli companies in need of credit.
Israeli exports to the US in the first six months of 2011 (excluding diamonds) rose by 1.6% compared to the same period last year, although a deduction of the pharmaceutical industry points to a 1% drop in exports during that period.
Exports to the US, deducting the pharmaceutical industry, dropped by 13.6% in 2010 compared to 2009. Imports from the US (excluding diamonds) rose by 32.3% in the first six months of the year, following a 10.7% rise in 2010.
- Follow Ynetnews on Facebook
