Israel: Exports and imports drop in June
Merchandise exports contracted 8.3% year-on-year in June in USD terms, coming after May’s revised 13.4% decline (previously reported: -8.5% yoy), and against a backdrop of elevated trade tensions and waning global momentum. Imports were down 3.9%, coming after May’s 6.3% decline. The trade deficit was roughly unchanged in year-on-year terms at USD 2.2 billion.
Looking at trend data for April-June, both exports and imports shrank in annual terms. The decline in exports was partly driven by a fall in volatile pharmaceutical shipments. However, lower exports of low-tech and medium-low tech goods also weighed on the reading. Imports of consumer goods, investment goods and raw materials all fell in April-June. Lower vehicle imports—following front-loading in the first quarter ahead of environmental tax changes—likely partly explains the falls in investment and consumer goods imports.