Export Institute sees 9% growth in exports to EU this year

Exports to the EU in 2005 grew by 10.6% to $8.3 billion, and they had been predicted to increase by 10% in 2006
 
Yechiel Assia, Export Institute director general, predicted last week that Israeli exports to the EU will grow 9% in 2006 to $9.8 billion. Exports to the EU in 2005 grew by 10.6% to $8.3 billion, and they had been predicted to increase by 10% in 2006.
 
According to Asia, the reason for the slowdown is the renewed strengthening of the Euro against the US dollar in the last few months.
 
An analysis prepared by the economic department of the Israel Export Institute and International Cooperation shows that Industrial exports to the EU in the first half of the year, excluding diamonds, totaled $4.7 billion, 8.3% more than in the first half of last year.
 
Imports of goods from EU, excluding diamonds, totaled $7 billion in the first half, 7% more than in the first half of last year.
 
Germany was the largest market in the EU; exports totaled $760 million in the first half, up 16% on the corresponding period.
 
Total export growth to the EU bloc was, according to the analysis, fairly low because of a 4.5% appreciation of the Euro against the US dollar in the first six months.
 

If the effect of the Euro-US dollar exchange rate is excluded, Israeli exports to the EU, excluding diamonds, rose by almost 10% in Euro terms