Israel: Trade deficit widens in May on a fall in exports

Exports decreased 8.3% over the previous year in May, contrasting April’s upwardly revised robust 21.0% expansion (previously reported: +12.4% year-on-year) and marking the largest decline in eight months. Trend data for March–May showed a decrease in exports from high technology industries, as well as a fall in foreign demand for manufacturing, mining and quarrying exports.

Meanwhile, import growth eased in May to 17.9% year-on-year from April’s 26.0% increase. Data for March–May continued to point to strong import growth in investment goods, such as machinery and equipment; raw materials and consumer goods.

The trade deficit widened to USD 2.1 billion in May from a revised USD 1.9 billion in April (previously reported: USD 2.2 billion), notably larger than the USD 0.7 billion trade deficit registered in May 2017. In addition, the 12-month rolling trade deficit widened from a revised USD 18.7 billion in April (previously reported: USD 19.0 billion) to USD 20.1 billion in May.

Israel Trade Balance Forecast

FocusEconomics Consensus Forecast panelists expect exports to grow 4.9% and imports 6.7% in 2018. Our panel expects a trade deficit of USD 11.2 billion in 2018. For 2019, panelists expect exports to grow 5.3%, imports to grow 5.0% and the trade deficit to widen to 11.6 USD billion.