74% of exporters expect a recession in the US and Europe, in the wake of the US credit downgrade and the debt crisis in Europe. 69% expect a serious drop in exports, and 60% expect a drop in export profit margins, according to a survey by the Israel Export and International Cooperation Institute of 404 exporters.
64% of exporters say that the debt crisis in Europe poses a greater danger to Israeli exports than the US credit downgrade by S&P, while 19% of exports believe the opposite.
In response to questions about how they plan to deal with the crisis, 16% of exporters said that they plan to freeze or cut employees' salaries, 12% will change their work plans or cut their budgets, and 10% will fire employees.
50% of exporters described their moods as "anxious" and 11% "frustration" or "despair". However, 30% said that they were still "hopeful" despite the uncertainty and volatility in the markets. 30% are worried that the government will cut its budget for encouraging exports in favor of financing socioeconomic reforms.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2011
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