Manufacturers Association of Israel president Shraga Brosh presented last week a study prepared by the Manufacturers Association's economic department showing that industry will lose over $3.0 billion this year because of the shekels' appreciation against the dollar.
He added that the dollar depreciation against the Shekel would bring about 1.2% loss in the GDP due to import becoming more competitive.
Brosh emphasized that "The collapse of the dollar is a national disaster," he added that "Israeli exports are being sacrificed on the altar of the inflation target, thereby causing massive damage to growth and jobs".
The study prepared by the Manufacturers Association uncover some harsh predictions for 2008: industrial output will fall by 5%; GDP will fall by 4.3%; GDP per capita will fall by 2.5%.
He called upon the government to treat the economic situation as national crisis and set up an emergency fund to assist industry and prevent closing down of production lines.