$801 million current account deficit in the balance of payments

Ramallah - Ma'an - The latest surveys by the Central Bureau of Statistics, the results of which were released on Monday, showed that the trade deficit in the Palestinian balance of payments rose to $801 million in the second quarter of 2024. The Central Bureau of Statistics and the Palestine Monetary Authority explained that the deficit in the current account (goods, services, income, and current transfers) continues to increase by 30% compared to the corresponding quarter of 2023, which is attributed to the deficit in the trade balance of goods amounting to $1,161 million, in addition to the deficit in the services balance, which amounted to $169 million. The data indicates a decrease in the net income account during the second quarter of 2024 by 80% compared to the corresponding quarter of 2023, reaching a value of 191 million US dollars, while investment income received from abroad amounted to 76 million US dollars, resulting mainly from interest received on Palestinian deposits in foreign banks. The da ta indicates a 44% decrease in net current transfers to reach US$338 million, compared to the corresponding quarter of 2023. This decrease is mainly attributed to the ongoing Israeli occupation aggression on the Gaza Strip and the West Bank, as the financial and economic movement in the region has been significantly affected. It is noted that current transfers to the government sector constituted only 29% of total current transfers from abroad, while current transfers to other sectors constituted 71%. It is worth noting that transfers from donor countries constituted only about 33% of total current transfers from abroad. The preliminary results of the balance of payments also indicated a surplus in the capital and financial account amounting to 743 million US dollars, as a result of the surplus achieved in the financial account amounting to 670 million US dollars. In contrast, the reserve assets of the Palestine Monetary Authority recorded a decrease of US$ 23 million during this quarter, compared to a dec rease of US$ 109 million in the previous quarter. Source: Maan News Agency