Trade gap widens as imports increase

“We expect imports to grow by more than exports this year,” Michael Sarel, chief economist at Harel Insurance Investments & Financial Services, says.


Published: February 12 2010, 09:46

Israel’s trade deficit widened in January for a second month as imports of raw materials and consumer goods rose. The deficit, excluding polished diamonds, ships and aircraft, was a seasonally adjusted $841 million compared with $683m. in the same month last year, the Central Bureau of Statistics reported Wednesday. In December, the trade gap widened for the first time in 13 months.

“We expect imports to grow by more than exports this year,” Michael Sarel, chief economist at Harel Insurance Investments & Financial Services, said by telephone. “This is because growth in Israel will be faster than growth in the US and Europe, Israel’s main export markets.”