Containers are seen in this general view of the port of the northern city of Haifa April 23, 2013..
(photo credit: REUTERS/Ronen Zvulun)
Over half of Israel’s record exports last year originated from businesses situated in the country’s geographical periphery, a report by the Foreign Trade Administration (FTA) at the Ministry of Economy and Industry has revealed.
Israeli exports reached a new high n 2018 of $110.6 billion, a 7% increase from 2017. Approximately 52% of goods were manufactured by companies headquartered in peripheral communities – 31% from Haifa and the North, and 21% from the South.
A further 34% of goods originated from the Center, 11% from the Tel Aviv region, and just 3% from Jerusalem and surrounding communities.
In keeping with trends of recent years, exports of services recorded a 12% increase in 2018, valued at approximately $50b. Exports of goods grew by a more modest 3.2%, compared with 2017.
The majority of service export growth can be attributed to sales of hi-tech services, with the increase in exports of goods due to rising sales of machinery and medical equipment.
Ohad Cohen, head of the FTA, said “2018 was a year full of achievements for Israeli exports, both in terms of its new peak of $110.6b., and in terms of our activity at the FTA through the expansion of trade agreements, greater deployment of economic delegations, and unprecedented support for hundreds of companies and exporters. We will continue to act in 2019 to increase exports through a variety of tools that we have developed and will continue to be available to the Israeli export community.”
Leading regional destinations for Israeli exports were North America and the European Union, both receiving 28% of exports, and then Asia (25%). The United States remained the leading country for Israeli exports ($10.9b.), followed by China ($4.7b.) and the UK ($4b.).
The report also detailed the concentration of Israeli exports, with 50 companies recording approximately 60% of all exported goods. Israel’s 10 largest export markets are the destinations for approximately 64% of all sales.