The Central Bureau of Statistics today published Israel’s foreign export data from May to July, where is seems that despite the concerns of a slowdown in the global economic recovery due to the European debt crisis, and despite the concerns over political forces negatively influencing Israeli exports, those three months, and July especially, scored a growth spurt in Israeli exports.
Israel’s economy, as is known, is based on export, and the sector that stood out in growth was the high tech branch, which constitutes 49% of all industrial export in the Jewish state. Export of elite technology was estimated to be NIS1.97 billion, a 5.7% increase compared to the June’s data. In the three months from May to July, high tech export went up 51% by a yearly calculation following a spurt of 39.4% in the months from January to April.
It should be noted that the Bank of Israel expressed concern several times in the last few months of a blow to exports due to the European debt crisis. With the latest interest rate announcement, the bank noted that “the signs pointing to a slowdown in the global economic recovery are multiplying,” and also mentioned “the freeze in the in the amount of exports in the second quarter.”
According to the seasonal report, July saw an increase in exports to $3.79 billion, compared to $3.6 billion the previous month, a rise of 5.2%. About 83% of the total export was industrial, 16% in the diamond sector, and 1% agricultural.
Total imports in July came to $4.36 billion, compared to $4.12 billion in June, a rise of 5.8%. 37% was raw material, 15% commodities, 14% machines and land transportation systems, and 34% diamond imports, energy materials, boats, and planes.
“High tech is naturally seesawish and we shouldn’t interpret the rise as a fundamental change,” economist Shlomo Ma’oz told the Globes newpaper. “Generally, it will take a period of several months until the problems abroad influence Israeli export and industry here. In my estimation, that last quarter will see a slowdown in Israel.”