Israel’s trade deficit reached $903 million for the month of October, as higher oil prices widened the trade gap by 25.4 % over the same period last year.
From January to October 2005, the nation’s trade deficit totaled $6.81 billion, in contrast to $5.43 billion over the same period in 2004, according to the Central Bureau of Statistics (CBS).
The trade deficit totaled $723 million in the month of September.
Much of the sharp rise in the trade deficit can be attributed to higher prices for imported energy.. The October-January period witnessed a rise in the value of fuel and energy imports by 53% to $5.8 billion, as opposed to $3.8 billion in same period last year.
Israel’s economic expansion was responsible for an 8.7% annualized growth in exports (excluding diamonds, fuel, planes, and ships) during the January to October period.
The export of high tech goods, however, which represents 46% of all industrial exports, fell by 2.2% during the July – September period, and remained unchanged for the month of October.
Despite the expansion, the import of consumer goods dropped at a 12% annual rate during the period from August to October, and durable goods imports fell by 28%.
Economic and political uncertainty compounded by a rise in U.S. interest rates have pushed the value of the shekel to its lowest point of the year in terms of the U.S. dollar. The shekel was trading at NIS 4.725 to the U.S. dollar as of Sunday evening.
Political instability in Israel following the election of MK Amir Peretz to head the Labor party caused leading indexes of the Tel Aviv stock exchange to fall by 2% on Sunday.
Peretz said that he would pull the Labor party out of the governing coalition, a move that will force a general election as early as next spring.
From January to October 2005, the nation’s trade deficit totaled $6.81 billion, in contrast to $5.43 billion over the same period in 2004, according to the Central Bureau of Statistics (CBS).
The trade deficit totaled $723 million in the month of September.
Much of the sharp rise in the trade deficit can be attributed to higher prices for imported energy.. The October-January period witnessed a rise in the value of fuel and energy imports by 53% to $5.8 billion, as opposed to $3.8 billion in same period last year.
Israel’s economic expansion was responsible for an 8.7% annualized growth in exports (excluding diamonds, fuel, planes, and ships) during the January to October period.
The export of high tech goods, however, which represents 46% of all industrial exports, fell by 2.2% during the July – September period, and remained unchanged for the month of October.
Despite the expansion, the import of consumer goods dropped at a 12% annual rate during the period from August to October, and durable goods imports fell by 28%.
Economic and political uncertainty compounded by a rise in U.S. interest rates have pushed the value of the shekel to its lowest point of the year in terms of the U.S. dollar. The shekel was trading at NIS 4.725 to the U.S. dollar as of Sunday evening.
Political instability in Israel following the election of MK Amir Peretz to head the Labor party caused leading indexes of the Tel Aviv stock exchange to fall by 2% on Sunday.
Peretz said that he would pull the Labor party out of the governing coalition, a move that will force a general election as early as next spring.