Brosh: exports & Industrial output in 2005, to slow

Manufacturers Association (IMA) president Mr. Shraga Brosh said last week that Industrial output and exports will slow down in 2005. In a press release issued upon publication of its first forecast for 2005 the Manufacturers Association predicted that Industrial output would grow by 5%, and exports by 9.5%, (compared with 17% in 2004 ) to $26.5 billion.
 
The Manufacturers Association predicted that throughout 2005 local companies will transfer production lines overseas in an effort to stay competitive and earn reasonable profits. This, according to the IMA, will affect GDP growth and the hiring of new industrial employees.
 
The forecast list several factors which are expected to slow Israeli industrial growth:
* A slowdown in the expansion of global trade from 10.2% in 2004 to 5.9% in 2005.
* High oil prices.
* Higher domestic labor costs.
* A weak dollar.
* A further cut in Israel's R&D budget.
 
The IMA's forecast indicated that High-tech industries, especially export industries, are expected to lead industrial growth in 2005.
 
The forecast added that High tech contributed 80% of the growth in industrial output in 2004, and almost 60% of the growth in industrial exports.