Israel Trade Gap Widens in May

Israel’s trade deficit narrowed slightly to USD 4.1 billion in July 2026, from USD 4.2 billion in the same month a year earlier. Exports rose 10.2% year-on-year to USD 5.62 billion, supported by stronger shipments of manufactured, mining and quarrying products excluding diamonds (10.2%), as well as diamond exports (49.9%). Meanwhile, imports increased 4.2% to USD 9.72 billion, driven by higher purchases of fuels (47.8%) and raw materials (4.5%), while consumer goods (0.5%) and investment goods (0.4%) recorded more modest gains. In the first seven months of 2026, the trade deficit widened 26.3% to USD 28.2 billion, from USD 22.3 billion in the same period of 2025.

Israel's trade deficit widened to USD 4.21 billion in June 2026, up from USD 3.06 billion in the same month a year earlier. Exports surged 57.7% year-on-year, accelerating from a 38.0% increase in May, to USD 5.98 billion, driven by stronger shipments from the manufacturing, mining, and quarrying sectors excluding diamonds (58.6%) as well as the agriculture and forestry sectors (1.6%). Meanwhile, imports climbed 48.8%, accelerating from 25.9% in the previous month, to USD 10.2 billion, supported by higher purchases of investment goods (72.8%), consumer goods (59.7%), raw materials (37.1%), and fuels (36.9%). In the first half of 2026, Israel's trade deficit widened 32.2% to USD 23.89 billion, compared with USD 18.07 billion in the corresponding period of the previous year.

Israel’s trade balance recorded a deficit of USD 3.69 billion in May 2026, widening from USD 3.35 billion from the corresponding month of the previous year. Exports surged by 38% year-on-year to USD 6.05 billion, reaching the highest since March 2022, led by increases in shipments from the manufacturing, mining, and quarrying sectors excluding diamonds (42.3%) and agriculture, forestry, and fishing (24.2%). Meanwhile, imports rose by 25.9% to USD 9.74 billion, the highest level in four years, driven by higher purchases of fuels (75%), raw materials (23%), and investment goods (19.8%). For the first five months of the year, the country’s trade deficit expanded to USD 19.13 billion compared to USD 15.01 billion a year earlier.