Exports grew by 24% in the first half of 2021 - First time service export was higher than goods

Israeli exports grew by 24% in the first half of 2021, according to data published today (Sunday) by the Foreign Trade Administration at the Ministry of Economy. The data show a sharp increase in exports, mainly in light of the fact that in the first half of 2020 the corona crisis erupted which led to a sharp decline in world trade.
Total exports from Israel in the first half of 2021 amounted to $ 67.6 billion. According to estimates by the Ministry of Economy, Israeli exports are expected to reach $ 135 billion this year, an increase of 20% compared to 2020, and of $ 15 billion compared to the forecast published by the ministry for 2021 earlier this year.

The figure is also higher than the volume of exports in 2019 - which was a record year for Israeli exports, which then amounted to $ 114 billion. The data are striking considering that the average dollar exchange rate in the first eight months of 2021 is about 9% lower than the average dollar exchange rate in 2019.
In a quarterly calculation, there was a 38% jump in exports in the second quarter of 2021, but even this increase is calculated against the most difficult quarter in world trade due to the corona crisis. According to the Ministry of Economy, the increase is noticeable even though the tourism sector has not yet recovered from the crisis - and its share of services exports was low in the first half of 2021. Tourism is considered one of the services exports, and in 2019 the sector accounted for 14% of services exports.

For the first time, in the first half of 2021, exports of services were higher than exports of goods - in line with a trend that has been going on for several years, in which the share of exports of services is strengthening at the expense of goods. The rate of exports of services in the last half was 51.4%, while the rate of exports of goods was only 48.6%. Although the total number of goods exported increased numerically in that period (an increase of 18% compared to the same period in 2020), the corresponding rate of increase in exports of services was higher (30%).
The increase in exports of services is mainly due to the strengthening of the scientific R&D sectors, and software and computing in Israel - two areas representing the high-tech industry - in which exports jumped by 48% and 29% respectively. Transport exports also rose by 110% , And exports of services as part of the sale of start-ups jumped by 77%.
In the commodities segment, there was a significant growth of about 13% in exports (excluding diamonds), and unlike the trend in recent years - diamond exports are also recovering, and recorded growth of about 111% in the first half of the year compared to the same period in 2020. By geographical area, 40% of exports of goods without diamonds were to Europe, 33% to America and 25% to Asia.