According to figures released by the quasi-governmental Israel Export and International Cooperation Institute (IEICI) Israeli exports suffered in 2015, but the decline wasn’t across the board.
Among Israel’s top 10 export destinations, half showed big declines but two enjoyed major increases while the rest showed moderate improvement or no change. Israeli exports to Turkey, with which Israel has had tense relations since the fatal Mavi Marmara raid in 2010, plunged 40% last year to US$1.7 billion.
Most of the decline was due to lower dollar prices for chemical products and refined oil as world petroleum prices plunged. Israeli exports to Turkey, with which Israel has had tense relations since the fatal Mavi Marmara raid in 2010, plunged 40% last year to $1.7 billion. Most of the decline was due to lower dollar prices for chemical products and refined oil as world petroleum prices plunged. Other big declines were in the euro zone. Exports to the Netherlands declined 14% to US$2.1 billion, to Germany by 16% to US$1.4 billion, to Italy by 23% to US$800 million, and to Spain by 26% also to about US$800 million.
Those big drops, however, were partly offset by double-digit increase in exports to the rising world economic powers in China and India. The Export institute said exports to China last year climbed 21% to US$3.1 billion while those to India rose 21% to US$1.3 billion.
Israel’s biggest export to China is electronic components, which came to US$1.6 billion last, a 53% rise over 2014, and thanks mainly to sales of semiconductors made by the Intel plant in Kiryat Gat. But other major categories include medical instruments, which is the fastest growing segment of China exports. Last year, they grew 14% to US$260 million, but in 2011-15 they rose an average of about 27% a year.
The United States remained Israel’s single biggest overseas market, but last year exports were unchanged from 2014 at US$11.2 billion. Exports to No. 2 Britain edged 2% higher to US$3.7 billion, the same pace as to France, where exports reached US$1.4 billion.
All told, however, exports of goods and services last year were down 7% to US$92 billion, but Ofer Sachs, CEO of the Export Institute, is optimistic about this year, citing a recovery in world trade. He said exports to the U.S. should grow and those to the EU should see a modest recovery while exports to Asian should grow strongly.