2005 - 10% growth in exports

Mr. Shraga Brosh, chairman of The Israel Export and International Cooperation Institute, predicted last week that in 2005 exports would grow by 10%. In 2004 exports rose by 17% to $23.6 billion.
 
Brosh made the prediction,on the basis of the Central Bureau of Statistics (CBS) export figures for the fourth quarter of 2004. the CBS indicated over 5% growth in exports, excluding diamonds, to $6.5 billion, after a 0.5% decline in the third quarter.
 
The Export Institute report noted, however, that part of the export growth in late 2004 could be attributed to a correction of the low export figures for the third quarter, which slowed down by the longest ever ports strike.
 
Brosh noted that export profitability continued to erode in the fourth quarter. Preliminary estimates indicated a further 2% rise in the cost of labor index per production unit at the end of 2004, which Brosh attributed to high labor costs and the shekel appreciation against the dollar. A breakdown of export destinations indicated growth to all overseas destinations: US up 9.6%, EU up 8.4% Asia up 16.6%, and the rest of the world up 2.3%.