Israel: Trade deficit widens in April despite a jump in export growth
May 13, 2018
Exports jumped 12.4% over the previous year in April, a rapid acceleration from the prior month’s revised 2.9% year-on-year expansion (previously reported: +1.6% year-on-year). Trend data for February–April continued to point towards robust growth in the exports of high technology industries, with especially robust foreign demand for computers, electronic and optical products, and medical supplies.
Imports, however, also accelerated quickly in April and increased 26.0% from a year earlier, which was up from the prior month’s 17.9% yoy expansion. Data for February–April showed especially strong growth in imports of investment goods such as machinery and equipment, as well as of raw materials and consumer goods.
The trade deficit widened from USD 1.7 billion in March to USD 2.2 billion in April, which was significantly larger than the USD 1.4 billion trade deficit recorded in the same month a year earlier. In addition, the 12-month rolling trade deficit widened from a revised USD 18.1 billion in March (previously reported: USD 18.2 billion) to USD 19.0 billion in April.
Israel Exports Forecast
FocusEconomics Consensus Forecast panelists expect exports to grow 4.2% and imports 6.6% in 2018. Our panel expects a trade deficit of USD 11.6 billion in 2018. For 2019, panelists expect exports to grow 5.7%, imports to grow 4.9% and the trade deficit to widen to 11.7 USD billion.
Author: Jan Lammersen, Economist