Previous Press Release on Foreign Trade Appeared on December 13, 2016

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Previous Press Release on Foreign Trade appeared on December 13, 2016

Jerusalem,

January 12, 2017

010/2017

Summary of Israel’s Foreign Trade – 2016

In 2016 compared to 2015

· Import of goods (excluding ships, aircraft, diamonds and fuels) increased by 8.7%

· Export of goods (excluding ships, aircraft and diamonds) decreased by 4.6%

· Trade deficit (goods only) increased by 66.1%

· Imports of investment good (excluding ships and aircraft) increased by 33.8%

· Imports of consumer goods increased by 11.0%

· Imports of fuels declined by 22.2%

· Exports of High Technology Industries decreased by 7.1%

Trend data October-December 2016 (at annual rate)

· Export of goods (excluding ships, aircraft and diamonds) increased by 11.2%

· Import of row materials decreased by 15.2%

Tables

Foreign Trade Presentation for 2016, in USD; Foreign Trade Presentation for 2016, in NIS

Development of the trade in goods - December 2015

Trade deficit (goods only) in 2016 totaled NIS 50.2 billion compared to NIS 30.2 billion in 2015 and NIS 49.4 billion in 2014). This is the highest trade deficit since 2012.

Diagram's data source

Exports (excluding ships, aircraft and diamonds) as per cent of Imports constituted 76.6% (83.9% in 2015).

In 2016, import of goods totaled NIS 249.8 billion, export of goods totaled NIS 199.6 billion and the trade deficit in goods, totaled NIS 50.2 billion as mentioned. Imports of goods increased by 4.8% compared to previous year. Imports of goods (excluding ships, aircraft, diamonds and fuels) increased by 8.7% (NIS 6.0 billion). Most of the increase was in import of investment goods that increased by 33.8% and in import of ships and aircraft increased by 146.5% compared to 2015.

In 2016 export of goods totaled NIS 199.6 billion, lower by 4.1% than exports in 2015. Export of goods (excluding ships, aircraft and diamonds) totaled NIS 170.6 billion a decrease of 4.6% compared to 2015.

Data on import and export of goods are temporary and do not include trade between Israel and the Palestinian Authority. Final data for 2016 will be published in April 2017. Import and export data on trade in services are published in the frame of Balance of Payments every quarter.

Industrial, mining and quarrying exports[1] (excluding diamonds) totaled NIS 167.3 billion, lower by 4.9% compared to 2015. Agricultural, forestry and fishing exports decreased by 4.5% and totaled NIS 4.4 billion. Export of diamonds (raw and polished) totaled NIS 28.4 billion, an increase of 1.4% compared to 2015.

Breakdown of industrial exports by technological intensity points to a drop of 7.1% in high technology industries exports compared to 2015. Medium high technology industries exports declined by 9.7% and low technology industries exports dropped by 0.5%. In contrast, medium low technology industries exports increased by 13.9%

Detailed data by import destinations show an increase of 11.0% of consumer goods. Import of investment goods increased by 33.8%, import of diamonds (raw and polished) increased by 2.6% and import of ships and aircraft increased by 146.5%. In contrast, import of raw materials (excl. diamonds and fuels) decreased by 0.5% and import of fuels decreased by 22.2% compared to 2015.

Trade in goods in 2016 was influenced by changes in value of the NIS against other currencies in which import and exports transactions are conducted[2]. In 2016, the Israeli Shekel strengthened against the U.S.A. Dollar by 1.2%. compared to the Euro the Israeli Shekel strengthened by 1.5%, compared to the UK Pound strengthened by 14.1%, compared to Canadian Dollar the Israeli Shekel strengthened by 5.1%, against the Swiss Franc the Israeli Shekel strengthened by 3.1% and compared to the Jordanian Dinar strengthened by 1.2%. However, the Israeli Shekel weakened by 9.2% compared to the Japanese Yen.

Main Findings

Export of goods

In 2016, manufacturing, mining and quarrying exports (excluding diamonds) constituted 84% of all export of goods. Export of diamonds constituted 14% (14.5% in 2015) and the remaining were agriculture, forestry and fishing exports.

Diagram's data source

Breakdown of industrial exports by technological intensity shows that high technology industries proportion decreased, it represented 49% of total industrial exports (excluding diamonds) against 49.9% in 2015. In absolute terms it decreased by NIS 6.2 billion (-7.1%). Breakdown by economic activity shows that export of manufacture of computers, electronic and optical equipment decreased by 10.1% (NIS -5.0 billion). Export of air and spacecraft products decreased by NIS 1.3 billion.

Diagram 3 - Manufacturing Exports by Technological Intensity

Diagrams data source

In 2016 export of medium high technology industries (30.0% of industrial exports) totaled NIS 49.2 billion, compared to NIS 54.5 billion in 2015. It represents a decrease of 9.7%. Most of the declined was recorded in export of chemicals and its products (-15.6%).

Export of medium low technology industries (14% of industrial exports) increased in 2016 by 13.9% and totaled NIS 24.6 billion. Export of manufacture of fabricated metal products increased by 25.2% (an increase of NIS 2.0 billion) and export of manufacture of refined petroleum products increased by 46.7% (an increase of NIS 0.9 billion).

Export of low technology industries (7% of industrial exports) decreased by 0.5% compared to 2015 and totaled NIS 11.6 billion. Export of manufacture of textile decreased by 7.3% compared to 2015 and export of manufacture of beverages decreased by 5.3%.

Export of diamonds (net, raw and polished) totaled, in 2016, NIS 28.4 billion compared to 28.0 in 2015.

Agriculture, forestry and fishing exports totaled NIS 4,356 million against NIS 4,560 million in 2015, a decrease of 4.5%. Export of growing of fruits (excluding citrus) decreased by 5.3% and export of flowers decreased by 8.4%. In contrast export of growing of flowers increased by 6.1%.

Import of goods

In 2016 import of goods, in current prices totaled NIS 249.8 billion higher by NIS 11.4 billion compared to 2015.

Diagrams data source

Breakdown by import destinations shows that 42% of imports were raw materials (excluding diamonds and fuels), 20% imports of consumer goods, 18% were import of investment goods, 9% imports of fuels and 11% import of ships, aircraft and diamonds.

In 2016, import of raw materials (excluding diamonds and fuels) totaled NIS 104.0 billion, a decreased of 0.5% compared to 2015. A breakdown by groups of import of raw materials shows a decrease in import of inputs for agriculture (-10.7%), import of chemical products decreased by 7.2%, import of non-ferrous metals decreased by 7.9% and import of fabrics and yarn decreased by 6.0%. In contrast, import of raw food products increased by 3.9% and import of inputs for machine and electronic manufacturing increased by 3.1%.

In 2016, import of investment goods (excluding ships and aircraft) increased by 36.5% and totaled NIS 46.9 billion, import of machinery and equipment rose by 30.7% and import of vehicles increased by 46.9%.

Import of consumer goods increased by 11.0% in 2016. Most of the increase was recorded in import of durable goods (18.6%), specially import of vehicles that increased by 59.1%. Import of non-durable goods increased by 5.7%.

Import of diamonds (net, rough and polished) totaled NIS 25.1 billion in 2016 compared to NIS 24.4 billion in 2015.

Import of fuels continued to fall in 2016 and totaled NIS 22.4 billion lower by 22.2% compared to 2015.

Development of the trade in goods - December 2016

Exports

Export of goods totaled NIS 18.1 billion, import of goods totaled NIS 23.6 billion and the trade deficit totaled NIS 5.5 billion.

Trade in goods in December 2016 was influenced by changes in value of the NIS against other currencies in which import and exports transactions are conducted[3]. In December 2016, the Israeli Shekel strengthened by 0.4% compared to the US Dollar. Compared to the Euro strengthened by 2.8% and compared to the Swiss Franc strengthened by 2.7%.

Trend data point to an increase of 11.2%, at an annual rate, in export of goods (excluding ships, aircraft and diamonds) in the last three months of 2016, continuing an increase of 7.5% in July-September 2016.

Trend data of manufacturing, mining and quarrying exports increased by 13.2%, at an annual rate, in the last three months of 2016, continuing an increase of 7.0% in July-September 2016.

Trend data of manufacture exports, by technological intensity

Trend data of exports by high technology industries increased by 12.1%, at an annual rate, in October-December 2016, continuing an increase of 15.6% in July-September 2016. Breakdown by economic activity shows an increase in export of computers, electronic and optical products.

Trend data of exports by medium-high technology industries increased by 20.7%, at an annual rate, in the last three months of 2016, continuing an increase of 2.8% in July-September 2016. Breakdown by economic activity shows that export of manufacture of electrical equipment point to an increase in the same months of 2016.

Trend data of exports by medium-low technology industries increased by 7.0% at an annual rate, in the last three months of 2016, continuing an increase of 4.5%, in July-September 2016.

Trend data of exports by low technology industries increased by 4.3%, at an annual rate, in the last three months of 2016, after a decrease of 0.9% in July-September 2016. Breakdown by economic activity shows that export of manufacture of food products beverages and tobacco products increased in the same months of 2016.

Imports

Imports of goods (excluding ships, aircraft, diamonds and fuels) decreased by 0.3% at an annual rate in October-December 2016, after an increase of 3.8% in July-September 2016.

Trend data of import raw materials (excluding diamonds and fuels) decreased by 15.2%, in the last three months of 2016, at an annual rate, continuing a decrease of 12.2% in July-September 2016.

Trend data of import of investment goods (excluding ships and aircraft) increased by 21.9%, at an annual rate (1.7% monthly average), in the last three months of 2016, continuing an increase of 47.8% in July-September 2016 (3.3% monthly average).

Trend data of import of consumer goods increased by 9.2%, at an annual rate, in the last three months of 2016, continuing an increase of 6.1% in July-September 2016. Import of non-durable goods (medicines, food and beverages, and clothing and footwear) increased by 8.4% at an annual rate, in the last three months. Import of durable goods (furniture, electrical equipment and transport equipment) increased by 17.0%, at an annual rate.

Next Press Release on Israel's Foreign Trade in Goods will appear on February 13, 2017.