Israeli exports have been on a downward spiral since 2011, but the situation has worsened significantly in the months of February and March this year, according to Ramzi Gabai, the chairman of the Israel Export and International Cooperation Institute.
The crisis has affected all industries and trade regions except the United States, he said.
Gabai made the remarks in a conference that was attended by dozens of exporters, as well as Industry, Trade and Labor Minister Shalom Simhon.
"This data is very disconcerting," Gabai said. "If the situation persists, exporters will have to cut or even shut down production lines, or shift them abroad."
He urged the government to take immediate action to help exporters "get back on the growth track."
According to the official, Israeli exporters are having difficulties dealing with the crisis in the global economy, as well as the eroding exchange rates and the growing competition with Asian companies – especially Chinese technology firms.
As European economies deteriorate, the government\’s inaction would mean adverse implications for the market – including unemployment in the technology sector, Gabai warned.