There was a sharp increase in the trade deficit with the European Union, and the export surplus with the US shrank.
A significant deterioration in Israel’s foreign trade balance was posted in January-February 1999. The trade deficit between Israel and the European Union (EU) during the period increased $200 million and amounted to $1.1 billion. This is a 23% increase compared to the corresponding period last year. Exports of goods to the EU dropped 3%, while imports grew by 8%. This emerges from statistics published today by the Central Bureau of Statistics.
A deterioration was also posted in trade with Asia, as a result of the reduction in exports to the Far East in the wake of the economic crisis in that region. The trade deficit with Asia since the beginning of the year amounted to $60 million, compared to a $17 million surplus in the corresponding months of 1998. Exports to Far East countries shrank 5.5%, amounting to only $423 million.
The export surplus to the US shrank 39%, and amounted to only $175 million in January-February. Imports of goods from the US grew by $100 million, a 12% increase, while exports to that country shrank by $72 million, a 6% decrease.
Published by Israel's Business Arena March 14, 1999