Israel Consumer Electronics Report Q2 2014
Israel is one of the leading consumer electronics markets in the region, supported by a skilled workforce and a vibrant start-up market, which has attracted significant investment from global CE and IT firms. However, the implementation of government austerity programmes and falling consumer confidence squeezed spending on consumer electronics in 2013. Nevertheless, we believe continued take-up of smartphones, mobile operators' preparation to launch 4G and strong government demand for computers will maintain an average annual growth rate of 5.5% during our five-year forecast period to 2018. BMI's Country Risk team forecasts another year of weak private consumption growth in 2014, which poses a downside risk to our otherwise positive outlook.