Israeli exports are expected to exceed a record $120 billion. In 2021

Israel’s total exports of goods and services in 2020 amounted to $114 billion, down only 1.5% compared to 2019 despite the coronavirus crisis, according to a report published Monday by the Foreign Trade Department of the Ministry of Economy and Industry.

The ministry said that in 2021 exports are expected to reach $120 billion, an all-time record.

The report stated that “the clear conclusion is that exports are due to the rapid growth that was characterized before the Corona crisis.”

The 66% drop in export of tourism services was blamed for most of the decline in 2020. Exports of merchandise (including diamonds) were about $60.18 billion, just under $60.23 billion. from the previous year. Total services exports fell about 3% to $53.8 billion. Business services exports rose 11.6% to $43.4 billion, an average year-over-year increase of 13% since 2016.

The high-tech sector has remained the most important source of Israeli export growth in recent years, while exports from the scientific research and development industries (excluding the sale of start-ups), and in the software and computer services industries which together make up about 61% of total service exports, grew by 36% and 18% Straight.

Service exports now make up about 47% of total exports, a larger proportion of the total, due to changing market demands. The average annual growth rate of these exports was about 6.9% between the years 2017-2020.

2021 started off strong, with early export data showing goods exports growing more than 2% and services exports growing fast 15%. The ministry said software and computer services, which make up the bulk of high-tech service exports, are growing at a rate above 20% so far this year.

“The year 2020 was a challenging year for global trade and the economy, including for Israeli exports,” said Ohad Cohen, director of the Foreign Trade Department at the Ministry of Economy and Industry.

“Despite the many challenges, Israeli exports have proven their resilience and resilience in the face of economic crises, mainly thanks to the high-tech sector,” he said. “We were able to beat the pessimistic forecast for 2020 and fell by just a few 1.5%, which is a much better number than most developed countries.

“Recently published data on exports from the beginning of 2021 is more optimistic than we expected at the time of writing the final 2020 report,” Cohen said. “According to our forecasts, we expect to reach the target of $120 billion and more next year.”

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