A survey carried out by the Israel Export and International Cooperation Institute (IEICI) among 404 local exporters, show that 74% of those who responded to the questionnaire expect a recession in the US and Europe.

The survey was held in the wake of the US credit downgrade and the debt crisis in Europe. The survey also show that 69% of the companies expect a serious drop in exports, and 60% expect a drop in export profit margins.

The survey also show that 64% of those who responded to the questionnaire indicated that the debt crisis in Europe poses a greater danger to Israeli exports than the US credit downgrade by S&P. 19% of those who responded to the questionnaire held the opposite opinion.

Asked how they plan to deal with the crisis, 16% of exporters noted that

they plan to freeze or cut employees' earnings, 12% will change their production plans or cut their budgets, and 10% will sack workers.