Israel’s export-dependent economy is expected to be harmed by planned job cuts and plant closures at its largest company, Teva Pharmaceutical Industries.
Teva, the world’s largest generic pharmaceutical manufacturer, accounts for as much as 3% of Israeli economic output, according to economists. Teva, along with Israel Chemicals and Intel’s Israel plants, accounts for almost half of industrial exports.
During the first 11 months of 2017, pharmaceutical exports — which are mostly Teva — rose to $6.8 billion from $6.3 billion in the same period in 2016, although monthly pharmaceutical exports slipped by 40% since peaking in August, government data showed.
Israel’s exports will be reduced by plant closings, but Teva also sells to the domestic market. Exports contribute more than 30% to Israel’s economy, but industrial exports excluding diamonds — $44 billion in 2016 — have shrunk to around 16% of that.
Fast-growing services such as those in the high-tech sector are 14% of Israeli exports.