Netanyahu in China 370.
(photo credit: REUTERS)
The share of Israel’s exports to China’s may double from the current 5 percent to 10% in 2035, the Bank of Israel said in its annual report, an excerpt of which was released Wednesday.
Emerging markets, and China in particular, are slated to shift global growth’s center of gravity, the report said. While Israel has strong ties with the US and Europe, their share of global trade is expected to fall from 30% to 20% in two decades, while China’s grows from 15% to 24%.
Although Israel has maintained a successful foothold in China’s market, the report said, the success was limited to fertilizers and electronic components.
“It is therefore important to develop additional export fields, such as environmental, agricultural and water technologies – areas in which China has a need and Israel has a relative advantage,” the report said.
The study also found that shares of exports to Latin America will stay steady at 2% (excluding Brazil, which will fall from 3% to 2%). Prime Minister Binyamin Netanyahu is set to visit the region to try and shore up stronger trade ties.
According to the study, while China grows as a market for Israeli sellers, it will maintain a consistent share of Israel’s import market.