2006 : Manufacturers Association predicts strong growth

Shraga Brosh, Israel Manufacturers Association president, predicted last week, at an end-of-year press briefing in Tel Aviv, that the economy would experience stronger growth in the coming year after achieving growth of just 4% in 2005.
 
Brosh noted that industrial revenue for the year totaled NIS 278 billion. Figures presented by Brosh show that of the total sales in 2005, industrial exports rose 4.5% to $25b, much slower than the 17.6% export growth achieved in 2004. Figures also show a slowdown in the rate of industrial growth, from 2004 when revenues jumped 7% over the previous year.
 
Brosh emphasized that the slow down, in exports, was largely influenced by the general reduction in international trade, budgetary cuts and increasing production costs, due mainly to the rise in oil prices and wages.
 
The IMA forecast, however, that industry would grow next year by 5.5% from this year, while total exports would rise 6.5% to $28b, in line with the expected WTO rise in international trade.