Exports of goods fell sharply and imports rose strongly in January 2012, bringing Israel's trade deficit to an all-time high, the Ministry of Finance reported today.
The Ministry of Finance said that the drop in exports (in dollar terms) in January continued the trend of the second half of 2011. A breakdown of exports by industry showed a sharp decline in chemicals exports, especially in pharmaceuticals. Tourism revenue also fell, and there was a modest drop in exports of services (December figures).
The Ministry of Finance warns of a further worsening in the public mood seen in January, emphasizing the Israel Purchasing Managers Index, which it expects to be low "in line with the levels seen at the height of the global economic crisis". The Consumer Confidence Index fell slightly, but remained fairly stable.
As for tax receipts, the Ministry of Finance said that they were fairly high in January, in line with budget projections. Tax revenues were boosted by higher direct tax revenues, which were partly offset by lower indirect tax revenues.
Tax revenues reached an all-time high of NIS 23.1 billion in January, a 13.7% increase in real terms over the NIS 19.4 billion in January 2010. NIS 3.8 billion in dividend taxes was the reason for the sharp increase.
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2012
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