Israel's exports (excluding diamonds) fell by an annualized 11% in seasonally-adjusted trend figures in the second quarter of 2010, after rising by an annualized 8.3% in the first quarter, the Central Bureau of Statistics reported today. Exports in June totaled $4.4 billion, 1.2% less than in May. June was the fourth consecutive month of falling exports.
Imports totaled $4.9 billion in June, up 0.2% on the month before. Israel's trade deficit totaled $500 million in June. The increase in imports was the lowest rate in at least a year, further evidence of the slowdown in Israel's economic growth.
Imports (excluding ships, planes, diamonds, and energy products) rose by an annualized 6.6% in the second quarter in seasonally-adjusted trend figures, down from an annualized increase of 30.6% in the first quarter.
Mizrahi Tefahot Bank chief strategist Ronen Menahem said, "The data point to a slowdown, but not a drop into recession. We'll see a significant slowdown in industrial output in the second half of the year."
Imports of durable goods, an indication of private consumption, rose by 0.8% in June, half the growth rate of 1.6% in May. The increase in June was the lowest rate in over a year, indicating a slowdown in private consumption, which accounts for 40% of Israel's GDP.
Exports account for nearly half of Israel's growth, giving them particular economic importance.
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2010
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