Israel Trade Balance Widens

Israel posted a trade deficit of $3.11 billion in March of 2026, widening from the $2.8 billion in the corresponding period of the previous year. It marked the widest gap in the month of March since 2022, when the Russian invasion of Ukraine triggered a surge in energy imports even bigger than the current energy crunch due to the war in between Israel and Iran. Imports rose by 0.8% annually to $8.4 billion, amid higher purchases of fuels (24.6% to $799 million) and capital goods (14.1% to $1.5 billion). Exports fell by 4.3% annually to $5.3 billion, dented by a drop sales of in manufactured goods (-3.1% to $5.0 billion).

Israel’s trade deficit widened to USD 4.4 billion in February 2026, sharply above USD 2.5 billion in the same month last year. This marks the largest figure since May 2022, as imports climbed 24.7% year-on-year to USD 8.8 billion, driven by a surge in transport equipment, ships, and aircraft (+1,951.9%), investment goods, total, excluding ships and aircraft (+74.9%), consumer goods (+23.7%), and raw materials, excluding diamonds and fuel (+17.3%). Meanwhile, exports fell 3% to a five-month low of USD 4.5 billion. For the first two months of the year, the trade deficit widened to USD 7.4 billion compared to USD 5.3 billion in the corresponding period in the previous year.

Israel’s trade deficit widened to USD 3.14 billion in January 2026, from USD 2.8 billion in the same month of the previous year. Exports grew 11.4% year-on-year to USD 5.1 billion, driven mainly by higher sales in manufacturing, mining, and quarrying excluding working diamonds (10.4%), agriculture, forestry, and fishing (33.1%), wholesale of diamonds (9.7%), and working diamonds (5.9%). Meanwhile, imports surged 11.7% year-on-year to USD 8.2 billion, led by increased purchases of raw materials (6.2%), consumer goods (17.3%), investment goods (48%), and diamonds, both rough and worked (8.5%). However, imports declined for fuels (-19%).