Trade deficit narrows

Trade deficit narrows 

Globes 20-Jan-14 

Israel's trade deficit fell by 21.7% in dollar terms in 2013 and by 73% in shekel terms, compared with 2012. 

The proportion of Israeli exports to Asia rose to 21% of total exports in 2013, almost equal to the 22% of exports to the US, the Central Bureau of Statistics reported today. The proportion of Israeli exports to the US fell from 28% of all exports in 2010 to 22% in 2013. The figures do not include diamond exports. 

The US is still the largest destination of Israeli exports, by country, accounting for $10.2 billion of exports. Exports to the UK totaled $3.4 billion and exports to China totaled $2.56 billion. 

Against the backdrop of boycott threats of Israeli goods in Europe, the fact is that one third of Israeli exports go there (32% to the EU and another 1% to EFTA countries). The largest export destinations in the EU were the UK and the Netherlands ($2.1 billion). 

The EU is also the largest source of imports, accounting for 34% of imports, compared with 12% from the US, and 20% from Asia. 

The figures show that the government's policy of diversifying Israel's trading partners to reduce its dependence on the EU and the US is working: 25% of exports went to "the rest of the world" (not the EU, US, and Asia). The HHI concentration index for 2013 shows little concentration in either exports or imports by country. 

Israel's trade deficit fell by 21.7% in dollar terms in 2013 and by 73% in shekel terms, compared with 2012; the trade deficit fell by NIS 20 billion. Most of the drop was due to a reduction in imports. 

Another figure shows the problem of the strong shekel. Exports in shekel terms were 2% lower in 2013 than in 2012, but were 5% lower in dollar terms. The Central Bureau of Statistics says that the average shekel-dollar exchange rate was 6.8% in 2013 than in 2012, after it was 7.2% lower in 2012 compared with 2011. The average shekel-euro exchange rate was 3.3% higher in 2013 than in 2012.