Israel Imports Surge 35% in October as Trade Deficit Widens to 16B Shekels
Israel's trade deficit widened to 16 billion shekels in October as imports surged 35% to 32.7 billion shekels. Exports grew 11% to 16.7 billion shekels, driven largely by manufacturing and industrial output.
Israel's trade deficit widened sharply in October as imports surged by 35% to reach 32.7 billion shekels, according to data released on Thursday by the Central Bureau of Statistics. For every 100 shekels Israel spent on imported goods in October, it exported about 51 shekels abroad. While exports also grew by 11% to reach 16.7 billion shekels, the widening gap drove the trade deficit from 9.3 billion shekels to 16 billion shekels.
Breakdown of Exports and Imports
Nearly all commodity exports in October, or 95%, came from manufacturing, mining, and quarrying industries. Diamonds accounted for 3% of exports, while agriculture, forestry, and fishing combined made up 2%. Since the beginning of the year, net diamond exports experienced a sharp decline, totaling 3.7 billion shekels compared to 6.1 billion shekels in the same period last year, marking a drop of nearly 40%.
On the import side, raw materials constituted the largest category at 42% of October imports. Consumer goods accounted for a quarter of imports, and another 23% consisted of machinery, equipment, and land transport vehicles for investment. The remaining 10% included diamonds, energy materials, ships, and aircraft.
Business Investment and Economic Context
One of the most prominent increases was recorded in imports of machinery and equipment, which grew at an average monthly rate of 5.2% between August and October according to trend data. If this pace were to continue for a full year, imports in this category would expand by 83.3%.
These figures follow the economic turbulence experienced earlier in the year. The Bank of Israel noted in October that economic activity continued to grow following a rapid recovery in the second quarter. The rise in imports of investment equipment aligns with this picture and may indicate that businesses are preparing to expand their operations. Overall, since the beginning of the year, merchandise imports have risen by about 7% to reach 290.7 billion shekels, while the value of exports in shekels remained almost identical at 158.9 billion shekels. These figures refer exclusively to goods, leaving service exports, such as software services, out of the calculation.
