An analysis prepared by the economic department of the Manufacturers Association expects that the drop in industrial exports will ease to a 2.5% decline in 2010
The Manufacturers Association of Israel (MAI) predicted last week that Israel's industrial exports will fall 10% in 2009 from $40.1 billion in 2008.
The MAI noted that the 2009 decline is the largest annual decline in industrial exports ever predicted in Israel's history.
An analysis prepared by the economic department of the Manufacturers Association expects, however, that the drop in industrial exports will ease to a 2.5% decline in 2010.
The analysis also noted that Israel's industrial growth in the past decade was export-oriented:
-Industrial exports, excluding polished diamonds, have accounted for 90% of the growth in the country's industrial output since 1998. However, this picture has been changing recently.
-The MAI's analysis also noted that the 25% appreciation of the Israeli shekel against leading currencies between the early part of 2006 and September 2008 sharply eroded exporters' profit margins.
-Profits were also affected by an 11% rise in labor costs in industry.