Exports of goods and services from Israel are expected to total at least $ 135 billion in 2021, based on a forecast by the Foreign Trade Administration at the Ministry of Economy and Industry based on various calculations of data for the first three quarters of the year.
The Foreign Trade Administration notes that this is an unprecedented increase of at least 18.5% compared to 2020, when exports totaled about $ 114.3 billion. The growth trend that exports have been experiencing since the beginning of the year is strengthening as the year progresses. According to conservative estimates, the Foreign Trade Administration expects that at this growth rate, exports are even expected to approach the $ 140 billion mark.
The Administration also notes that 2021 is a record year in another aspect, concerning the fact that for the first time, exports of services exceed exports of goods and are expected to constitute about 51% of all Israeli exports, compared with 49% of exports of goods.
The two most significant trends that contributed to the change in the balance of power between goods and services are a significant increase in the high-tech industries in Israeli exports – exports of programming services and research and development services without start-ups, which grew by 25% and 15%, respectively. 138% percent. However, the Ministry of Economy clarifies, it should be remembered that with regard to transportation services, the increase is due in part to the jump in transportation costs worldwide and the fact that the year to which the data is compared is the Corona year that hit supply chains worldwide. At the same time, exports resulting from the sale of start-up companies also jumped by about 257% and these trends led to an overall growth of about 30% in the export of services.
In the commodities segment, a recovery trend can be seen after several years of stagnation and growth of about 15% – an increase that has not been seen in recent years. A particularly significant recovery in the commodities sector was recorded in diamond exports, which grew at a rate of about 65%, after years of contraction and crisis in the industry in Israel. Excluding diamonds, exports of goods in 2021 grew by about 13% compared to 2020. Apart from diamonds, exports of goods grew in almost all sectors and sectors.
From a geographical point of view, looking at the export of goods without diamonds, it can be seen that the majority of exports (39%) are directed to European markets, 33% to American markets and about 25% to Asian markets.
Minister of Economy and Industry Orna Barbibai: “It is a stable and growing economy that enables many challenges to be met, which characterizes Israel. The support and assistance systems of the Foreign Trade Administration in Israel and in the 55 centers of economic activity throughout the world will continue to support the industry and the business sector and will also lead in 2022 the activity of promoting exports and attracting foreign investment to Israel. “National trade policy recognizes the importance of exports and its enormous impact on the Israeli economy.”
Ohad Cohen, Director of the Foreign Trade Administration at the Ministry of Economy and Industry: “The year 2021 will break records in Israeli exports and its components. Whether we reach the $ 140 billion mark or not, this is an all-time high in exports, which was slightly halted in 2020 due to the corona plague. The exporting sector showed already in late 2020 and even more so in 2021 an impressive recovery, both in the export of goods and in the export of services. It is important to remember that the last peak in exports was recorded in 2019, when exports totaled about $ 117.5 billion, so this is not a correction after the corona year but a clear significant growth in the volume of Israeli exports. This growth comes despite the fact that the tourism sector has not yet returned to full activity in the past year and although the Corona challenges in the target markets have continued and even increased recently. “
In 2021 exports of goods without diamonds, experienced impressive growth in many markets: exports to Europe increased by about 7%, with an emphasis on Belgium (+ 37%), Cyprus (+ 49%), Greece (+ 25%), Ireland (+ 517%) , Italy (+ 74%), Spain (+ 38%) and Turkey (+ 28%); Exports to Asia grew by about 15% and especially exports to India (+ 54%), Hong Kong (+ 22%), South Korea (+ 47%), and Taiwan (+ 36%); Exports to America grew by about 13%, especially exports to the United States (+ 14%), Peru (+ 31%), Colombia (+ 18%) and Ecuador (+ 49%); And exports to Africa jumped significantly by about 37% with an emphasis on Egypt (+ 46%), Morocco (+ 192%), South Africa (+ 27%) and Nigeria (+ 101%).