Trade deficit hits all-time high

Israel's trade deficit was $1.83 billion in April, the highest monthly figure on record.

Israel's trade deficit was $1.83 billion in April, the highest on record. There is no deficit of these proportions on the Central Bureau of Statistics archive, which starts in 1988.

Imports of goods totaled $5.8 billion last month, while exports of goods totaled $4 billion. In the first third of the year, Jnauary to April, the trade deficit was over $4.9 billion, three times the deficit in the corresponding period in 2010.

Exports rose by an annualized 28% in February-April 2011, after rising 28.2% in November 2010-January 2011, the Central Bureau of Statistics reports, belying the Manufacturers Association of Israel's complaints that the shekel's appreciation against the dollar was killing exports. The shekel-dollar exchange rate fell to a three-year low in April. The trade deficit averaged $1.2 billion a month in January-April, amounting to an annualized $14.8 billion.

84% of exports in February-April were manufactured goods, 13% were diamonds, and 3% were agricultural products.

High-tech exports (including pharmaceuticals, electronics, and avionics), 47% of total industrial exports (excluding diamonds), rose by an annualized 29.3% in February-April, after rising 17.9% in November-January. Mixed high-tech exports (including chemicals), 30% of total industrial exports, rose by an annualized 38.3% in February-April, after rising 45.5% in November-January. Mixed-low technology exports, 17% of total industrial exports, rose by an annualized 20.6% in February-April, after rising 42.4% in November-January. Low technology exports, 5% of total industrial exports, bucked the trend, rising by an annualized 20% in February-April, after rising 14% in November-January.

Diamond exports rose to $3.8 billion in January-April from $3 billion in the corresponding months of 2010.

34% of imports in April were raw materials (excluding diamonds and fuel), 14% was machinery and vehicles, 14% were consumer goods, and 38% were diamonds, fuel, ships, and planes.

Imports of investment goods rose by an annualized 34.6% in February-April, after rising 60% in November-January.

Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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