Israeli exports are expected to break a record in 2022 and cross a threshold of 160 billion dollars

Israeli exports are expected to break a record this year and cross a threshold of 160 billion dollars - according to a forecast published by the Ministry of Economy. If the forecasts come true, the rate of increase in exports will be higher than 10% compared to 2021, which also recorded a record in Israeli exports.
The Ministry of Economy says that the forecast for Israeli exports of $160 billion is conservative and that if the rate of growth in exports in the fourth quarter of this year is similar to the growth in exports in the first three quarters of 2022, it is possible that the volume of exports will be higher than $165 billion.
However, the data from the Ministry of Economy also indicate a slowdown in the increase in exports in the second half of the year compared to the first half of 2022, when Israeli exports jumped by more than 22% compared to the corresponding period in 2021.
In 2021, the export of services overtook the export of goods from Israel for the first time, and according to the latest forecast of the Ministry of Economy, the trend is expected to be maintained this year as well, with the export of services accounting for 51% of all Israeli exports. Programming services make up 42% of all service exports and R&D services make up 14% of service exports. These are the main export branches in the sector. These figures also illustrate the exposure of the Israeli economy to the global crisis in the high-tech industry.
Israeli exports of goods and services in the first half of 2022 amounted to about 82 billion dollars, a growth of about 22.3% compared to the first half of 2021. In the first quarter a very nice growth of about 27% was recorded, although in the second quarter there was a moderation, growth was still recorded of about 17.6% compared to the second quarter of 2021.
The growth is mainly attributed to the export of services, mainly computing and consulting services, which increased by 31% compared to last year's median, business services which increased by 17%, services in the world of computers which grew by 16% and a significant increase in transportation services, mainly Zim's maritime transportation services, which grew by 79 %.
It can also be seen that the tourism sector has recovered since the corona epidemic: the value of tourism services exports in the first half of 2022 was higher than the total of all tourism services exports in 2021 combined, and was 3.2 billion dollars. This is the second year in which the export of services is greater than the export of goods, where you can see the continuation of the recovery from the Corona epidemic and a growth of about 18% in the first half of the export of goods (minus the diamond industry, which itself grew by 19.4%).
From the analysis of the export of goods (without diamonds) by geographical distribution, it can be seen that in the first half of 2022, the bulk of exports, approximately 40%, are directed to European markets, 32% to America and approximately 26% to Asia. According to the data, many export markets experienced impressive growth in the first half of the year, among which we can mention the export to the European Union which grew by about 25%, the export to Ireland grew by 151%, Cyprus by 126%, Greece by 76%. Exports to the USA grew by 8%. There was also a nice growth in exports to Turkey of 25% as a result of the warming of relations between the countries.
Geniger Plastics, a manufacturer of irrigation pipes and drippers and a distributor of products for agriculture, will cooperate with a Moroccan corporation, whose annual sales volume is about 200 million dollars, to establish a joint production plant in Casablanca. The factory produced sheets for greenhouses and ground covers. The expected sales are estimated at about 15 million dollars.
It should be noted that until recently, Morocco did not allow direct imports from Israel into its territory of agricultural inputs, and the Israeli companies had to export to it through their subsidiaries abroad. Following the Abraham agreements, relations with Morocco changed for the better.
The plant will be established in equal partnership with the Moroccan corporation, which, besides being a manufacturer of irrigation systems, is also a leader in the distribution of agricultural inputs.
The agricultural market in Morocco is on the rise, because part of the vegetable production in Europe is moving to Morocco following the cheaper costs in the country, mainly of manpower and energy (Morocco exports electricity to Europe, mainly to Spain, thanks to large investments it made in alternative energy and surplus in electricity production). The financing of the establishment will be divided equally between Geniger and the Moroccan company, through the injection of capital from the owner as well as local bank financing in Morocco.
Fabio Kahn, CEO of Geniger: "The thawing of relations between the countries created a favorable climate for cooperation, and I am proud that Geniger is one of the first companies to establish a joint venture in Morocco with a leading local company in its field. I am confident that the combination of Israeli technology in the fields of agriculture, alongside the production and sales capabilities of the Moroccan partner, will lead to the success of the project."