Israel: Merchandise exports gain steam in October
November 12, 2020
Merchandise exports soared 17.0% annually in October (September: +5.1% year-on-year). October’s outturn marked the strongest expansion since April 2018. Meanwhile, merchandise imports dived 6.7% on an annual basis in October (September: -3.0% yoy) amid still-limp domestic demand.
As a result, the merchandise trade balance deteriorated from the previous month, recording a USD 1.6 billion deficit in October (September 2020: USD 1.0 billion deficit; October 2019: USD 2.6 billion deficit). Lastly, the trend improved, with the 12-month trailing merchandise trade balance recording a USD 19.8 billion deficit in October, compared to the USD 20.8 billion deficit in September.
In the near term, renewed lockdowns abroad could weigh on exports, although both exports and imports are seeing rising solidly next year as the impact of the pandemic eases.
Author: Oliver Reynolds, Economist