Exports in 2005 will grow 7%

The Federation of Israeli Chambers of Commerce ( FICC ) published last week its exports forecast which indicate that Israeli exports of goods and services will grow 7% in 2005. Exports of services will grow this year by 11%,and exports of goods by 6%.
 
According to the economic unit of the FICC, in the first half of 2005 exports of services rose by 15% ($1 billion) to $8 billion, compared with $7 billion in the first half of 2004.
 
Mr. Uriel Lynn, Chambers of Commerce president, said in a press release that: “Policy-makers should well understand that the source of economic growth and indeed job creation is in the trade and services sector.”
 
He also noted that it was a mistake on the part of the policy makers to use only industrial exports to estimate developments in Israeli exports. Lynn argued that developments in the export of services should be taken into account.
 
The study which compared long terms export trend found that exports of services between 1995 and 2004 grew by 60% (from $9.5 billion in 1995 to $15 billion in 2004).
 
During the same period, 1995 – 2004, exports of goods grew by 18%, from $29 billion in 1995 to $34 billion in 2004.
 
The FICC study also shows that exports of goods and services accounted for 44% of the GDP. 48% of exports were industrial products, 19% were polished diamonds, and 30% were services.