WASHINGTON: The continuing fall in exports meant that Israel’s trade deficit more than doubled in the first half of 2016. The decline in Israel’s exports continued in the second quarter of the year, according to initial June figures published by the Central Bureau of Statistics. Israel’s trade deficit has already reached $25.6 billion in the first half of 2016, more than double the $12.4 billion trade deficit in the first half of 2015.
On the other hand, the drop in exports is still being affected by temporary events, such as upgrading work on the Intel plant in Kiryat Gat. Israel’s imports, on the other hand, continue to show strength in both consumer goods and machinery and equipment. The low point reached by fuel prices is reflected in lower imports of energy materials.
Imports of goods totaled $20.7 billion and exports of goods $15.1 billion in June, making the trade deficit for the month $5.6 billion. The shekel weakened in June against most of Israel’s trading currencies, headed by the US dollar (1.1%), the euro (0.4%), the Japanese yen (4.1%), and the Swiss franc (1.8%). The shekel strengthened against the pound sterling in June, however, following the vote in the UK referendum to leave the European Union.
In trend figures, Israel’s exports, excluding ships, planes, and diamonds, were down by an annualized 13% in the second quarter, following a 19.5% drop in the first quarter of 2016. Imports of goods, excluding ships, planes, diamonds, and energy materials, grew by an annualized 12.6% in the second quarter, following a 14.1% annualized rise in the first quarter.
According to trend data, imports of consumer goods rose by an annualized 6.5% in the second quarter, on the heels of a 13.7% annualized increase in the first quarter. Imports of durable goods (furniture, home electrical appliances, and vehicles) were up by annualized 10.3% in the second quarter, with most of the increase consisting of vehicle imports, which rose 14.1%.
Imports of goods for current use (drugs, food and beverages, and footwear), inched up by an annualized 1% in the second quarter. Imports of energy materials (crude oil, refined oil products, and coal) totaled NIS 11 billion in the first half of the year, 31% less than in the corresponding period last year.
