Israel Export Institute: exports will have dramatic slowdown in 2008

Growth of exports to the USA which was 16% in 2006 and 5% in 2007 will be 0% in 2008
 
Treasury Director General, Yarom Ariav,said last week that Israel's economic growth is expected to fall to 3.5% this year, the treasury chief said in remarks published on Sunday, underscoring fears that it may be facing a slowdown.
 
Ariav said The expected growth of 3.5% in 2008, considerably lower than the finance ministry's previous estimate of 4.2% used in the 2008 budget and the 2007 figure of 6%.
 
He said, however, that Israel's economy was still performing better than many Western countries and that it was not in a recession.
 
The Israel Export and International Cooperation Institute said that exports in 2008 will experience dramatic slowdown far less than the 16% growth experienced in 2007
 
According to economic analysis made by the economic unit of the Export and International Cooperation Institute the US market began slowing down in 2007 reducing growth to 2.2% compared to 2006 with 2.9%. Growth of exports to the USA which was 16% in 2006 and 5% in 2007 will be 0% in 2008.
 
Export growth will also be affected by slow down in the EU countries to 1.5% in 2008 compared with 2.8% in 2007. Exports to the EU & USA account to two thirds of total Israeli exports.