Israel's Foreign Trade Authority reported that Asia is set to overtake the United States as Israel's second largest export destination this year.
The Foreign Trade Authority also noted that the number one spot is still held by the European Union. Foreign Trade Authority director- general Ohad Cohen said that in 2013, exports to Asia nearly equaled those to the US for the first time -- a significant rise from a decade ago, when the Asian market accounted for just 15% of Israel exports.
The ministry expects exports to Asia to grow from 21% of total exports in 2013, to 24.5% in 2018, while combined exports to the EU and US will shrink from a 63% share to 59.9%.
Exports to all other countries amounted to 16% in 2013, and are projected to fall to 15.5% by 2018.
A decade ago, Asia accounted for just 15% of Israeli exports, while the US provided more than a third of the market. However, if regional groups are discounted, the US remains Israel's largest single trade partner.
Cohen noted that “The export forecast for 2014 is lower than the previous forecast, and stands at 4.2% as a result of disappointing growth and expected demand from India and Brazil, and the expected stagnation in demand from countries such as Canada, Turkey and Holland.”
For Asia, the ministry revised expected growth from 8.5% down to 4.7%. Despite the reduction, growth in exports to Asia is still expected to outpace those to the United States - 1.3% and Europe - 1.5%. According to figures from the Foreign Trade Authority, industrial exports to Asia will grow by 1.9% in 2014 and rebound to 4.2% in 2015. The projections were based on import data from 20 countries, a survey of 75% of Israel’s export market and macroeconomic data collected from the World Trade Organization and the World Bank.
