In the second quarter of 2024, there was a 0.7% improvement in Israel’s terms of trade index, according to data published today (Sunday) by the Central Bureau of Statistics. This index, which excludes ships, airplanes, diamonds, and energy materials, indicates a relative strengthening in the purchasing power of Israeli exports compared to imports.
The export price index for goods rose by 1.8% in the second quarter, following a 2.4% increase in the previous quarter. At the same time, the import price index for goods rose by 0.6%, after a 0.3% decrease in the first quarter of the year.
In a breakdown by sectors, there was a significant 3.1% increase in the price index for chemical exports and their products, which constitute a central part of Israeli industrial exports. On the other hand, the price index for pharmaceutical exports decreased by 1.8%, continuing a downward trend from the previous quarter.
In the energy sector, the price index for energy imports rose by 4.9%, indicating an increase in energy costs for the Israeli economy.
The diamond sector exhibited high volatility, with the price index for processed diamond exports rising by 10.8%, following a sharp increase of 14.6% in the previous quarter. Conversely, the price index for diamond imports decreased by 0.1%.
In agriculture, there was a 1.5% drop in the price index for agricultural, forestry, and fishing exports, with flower cultivation exports recording a sharp decline of 5.7%.
