High tech jump leads exports rise

However, Excellence economist Shlomo Maoz warned that Europe's troubles may still lead to a slowdown here.

Despite concerns of a slowdown in the global economic recovery, and worries about political factors affecting Israeli exports, exports rose in May-July 2010, the Central Bureau of Statistics reported today.

High tech exports, which account for 49% of Israeli industrial exports, totaled $1.97 billion in July, 5.7% more than in June. High-tech exports rose by an annualized 51% in May-July, after rising by an annualized 39.4% in January-April.

The Bank of Israel has several times in the past few months expressed concern about the effect of the debt crisis in Europe on Israeli exports.

Based on original figures, exports of goods fell to $4.43 billion in July from $4.75 billion in June. Exports in seasonally adjusted figures, however, rose to $3.79 billion in July from $3.59 billion in June. 83% of exports were industrial goods, 16% were diamonds, and 1% were agricultural products

Based on original figures, imports of goods fell to $4.88 billion in July from $4.91 billion in June, although imports rose in seasonally adjusted figures to $4.36 billion in July from $4.12 billion in June.

The trade deficit was about $500 million in July.

Excellence Nessuah chief economist Shlomo Maoz told "Globes", "High tech is volatile by nature, and the increase in exports should not be considered a change in trend. There is usually a lag of several months until problems abroad begin to affect Israeli exports and the economy. I believe that we'll see a slowdown in Israel in the fourth quarter."

Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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