The Israel Export and International Cooperation Institute today cut its export growth forecast for 2013 from 3% to zero. The update was made in response to the strengthening of the shekel, lower growth rates in Asia, the continuing recession in the EU, and lower growth forecasts for global trade.
The Export Institute estimates that exports of goods and services, excluding start-ups will be $92 billion in 2013, the same as in 2012.
"In the most pessimistic scenario on the basis of second quarter data, we may again revise the forecast downward," says Export Institute VP economic affairs Shaul Katznelson. "Many exporters are reporting increasing difficulty due to higher production input prices in the past year alongside lower proceeds caused by the strengthening of the shekel."
The last times that the Export Institute cut its exports forecast was in the wake of the global economic crisis in 2008, and after the second intifada and high-tech crisis in 2002.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2013
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