A 15.5% decrease in Israeli high-tech exports in September-November
21 December, 2016
Israel’s central bureau of statistics sounds the alarm: the export of electronic goods shrank by a staggering 32.8%
The downward trend in Israeli high-tech exports in 2016 continued, even worsened, in the months from September to November. According to data published by the Israeli central bureau of statistics show an annual decrease of 15.5% the yearly export of Israeli high-tech goods, continuing a decrease of 9.8% in June-August 2016.
The manufacture of electronic components and boards, the mainstay of Israel’s high-tech industry, suffered the most. According to the bureau of statistics, the export of manufactured electronic components and boards dropped by a whooping annual rate of 32.8% in September-November, or a 3.3% monthly decrease.
A passing phase, or a real threat to Israel’s high-tech industry?
The high-tech industry accounts for 47% of Israel’s exports (excluding diamonds). It is Israel’s main growth engine, pulling the country’s economy even in times of economic stress. The ongoing downward trend will have macro-economic implications, which will no doubt affect the Israeli economy.
Techtime assess that Israel’s electronic manufacturing industry employs 10,000-15,000 workers, most of these in the country’s weaker social periphery. The ongoing slump in international demand for Israeli electronic goods could lead companies to restructuring and even layoffs.
Some analysts maintain that the current slump is a passing phenomenon. Ramzi Gabay, the CEO of the Israeli export institute said that “the data for September-November is an exeption, and can’t be seen as an indication for future trends”. Gabay concluded by saying “there are no grounds for panic”.
Put the blame on Intel
Some of the analysts put the blabe for the negative figures on Intel. The chip giant’s activities account for a major part of Israel’s high-tech exports. These analysts claim that the upgrading of Intel’s factory in southern Israel are the cause for the alarming data.
One also has to bear in mind, that this year’s data is calculated in comparison with 2015 – an exceptionally good year for Israeli high-tech. in 2016, is which exports grew from 14$ billion to over 17$ billion. The Online IVC data base strengthens this assumption, by showing that from the beginning of 2016 to the end of Q3, Israeli high-tech companies raised almost a billion dollars – threatning to break the previous fund raising record set in 2015.