ISRAELI EXPORTS IN 2021 TOTALED ABOUT $ 143 BILLION - ALL-TIME RECORD AND AN 25% INCREASE
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by Ifi Reporter Category:Capital Market Apr 7, 2022
Israeli exports of goods and services in 2021 totaled about $ 143 billion, an all-time record that exceeds the most optimistic forecasts predicted by the Ministry of Economy and Industry. This is an unprecedented increase of about 25% compared to exports in 2020. In the Ministry of Economy and Industry, the ministry notes that the data are also exceptional compared to the period before the corona when the peak of exports was recorded in 2019 and stood at about $ 117.5 billion.
The Foreign Trade Administration notes that the composition of exports in 2021 is also an important landmark since the export of services, for the first time, exceeded the export of goods and constitutes 52% of Israeli exports compared to 48% of exports of goods. This is a particularly high figure even in comparison with developed countries, a testament to the evolution that the Israeli economy is undergoing with the centrality of the service sectors and in particular exports, in which the high-tech centrality is gaining momentum.
The high growth rate is noticeable both in goods and more so in services with unprecedented growth rates from a historical point of view. Commodities grew by 17% compared to 2020 - in comparison
To a certain stagnation in recent years. In contrast, services grew at a double rate - 34%. The growth rate is also exceptional in comparison with the average growth of the services sector in recent years.
From a sectoral point of view, an increase was recorded in most components of exports, while an unusual increase compared to the average was recorded in diamond exports, which grew by about 71% in the past year, evidence of the continued recovery of the industry in Israel. In the goods sector, exports of medical and optical equipment (+ 31%), exports of metal products (+ 26%) and exports of automation and electronic equipment (+ 20%) grew significantly. In the services sector, exports of transportation services grew by about 131%, to a considerable extent thanks to the unusual increase since the Corona period in the prices of sea and air transportation.
Following the trend in recent years, software exports (which is the significant component in the exports of high-tech companies) have grown by 26% and today constitute the leading industry in Israeli exports with a share of 27% of total exports. Also in the services segment, exports as a result of the sale of start-up companies grew by 273% and returned to their pre-Corona level after 2020 was a year with a minority of start-up acquisitions.
From a geographical point of view, looking at the export of goods without diamonds, it can be seen that a major share of exports (40%) is directed to European markets, 32% to American markets and about 25% to Asian markets.
In 2021 exports of goods (excluding diamonds) are experiencing impressive growth in many markets: exports to Europe increased by about 11%, exports to Asia grew by about 16% and exports to America grew by about 16% as well.
In 2021, the United States continued to be Israel's leading export destination by a significant margin over the rest of the markets, the second destination continues to be China and the Netherlands is the third most important destination for Israeli exports.
Ohad Cohen, Director of the Foreign Trade Administration at the Ministry of Economy and Industry: 55 centers of business activity around the world - and even in providing financial support to companies interested in operating in global markets. "Israeli industry in order to increase growth and quality employment in the Israeli economy."
