Bank of Israel: The slowdown may have broad implications for Israel’s exports to the region.
Israel's economic recovery in January-April 2010 recovery continued in step with the recovery of the global economy, but there were signs of some slowdown in the rate of growth compared with the growth trend at the end of 2009, the Bank of Israel said in its "Recent Economics Developments" report today.
The Bank of Israel warns, "The slowdown of recovery throughout the eurozone due to the crisis in southern Europe, which became more severe at the end of the period reviewed, may have broad implications for Israel’s exports to the eurozone at large, due to their heavy exposure to the European market: about 33% of Israel's total exports (excluding diamonds) are directed to Europe." It added that the consequences of continued slowdown in the European recovery include both a direct effect, a decline in European demand for Israeli exports, and the indirect effect of nominal exchange rate appreciation against the euro on Israeli exporters’ competitiveness.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2010
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