BOL: sharp drop in State of the Economy Index points to growing economic crisis

There was a sharp 13% fall in the services exports index in December. The goods exports index fell 7.1% in December after rising 1.8% in November
 
The Bank of Israel's (BOL) composite index of economic indicators fell last December by 1% pointing at worsening economic situation.
 
The BOL noted that every component of the index fell. There was a sharp 13% fall in the services exports index in December, after it rose in November, and the goods exports index fell 7.1% in December after rising 1.8% in November.
 
Other indices, such as the trade and services revenue index, the index of manufacturing production, the goods imports index also fell.
 
The Central Bureau of Statistics also published last week its figures showing thatexports was down 20% in the fourth quarter of 2008 compared with the same period of 2007.
 
The CBS noted however that the strong export showing in the first half more than made up for the decline:
 
Total exports in 2008 were 12% greater than in the year before, reaching US$6.7 billion. In annualized terms, fourth-quarter exports to Europe fell by 27% while exports to the United States dropped by 21% - and to Asia by 45%.
 
Israel's main target market last year remained the U.S., to which exports rose 3% last year to $19.8 billion.