RAMALLAH, The preliminary results of the International Investment Position (IIP) (external assets – foreign liabilities) for Palestine at the end of the third quarter 2021 revealed that the net IIP amounted to $3,607 million, an increase by 8% compared with the previous quarter, which means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad, today said the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA).
They said in their joint report that 67% of the total external assets of the Palestinian economy are currency and deposits.
The total stocks of external assets for the Palestinian economy amounted to $9,436 million, the foreign direct investment abroad contributed to 4%, portfolio investments abroad reached 16%, while other foreign investments abroad (mainly currency and deposits) reached 72% and reserve assets amounted to 8%.
At the sectoral level, the external investments of the banking sector represented a large share of the external assets (balances abroad, vault cash and portfolio investment) standing at 71% of the total value of external assets for the Palestinian economy.
The total stocks of foreign liabilities in Palestine (stocks of non-residents invested in Palestine) amounted to $5,829 million, the foreign direct investment in Palestine contributed to 50%, portfolio investments in Palestine reached 14%, and other investments in Palestine (mainly loans and deposits from abroad) amounted to 36%.
At the sectoral level, the foreign investments in the banks sector contributed a major value in the foreign liabilities, represented by 36% of the total value of foreign liabilities on the Palestinian economy.
The stock of external government debt increased by 0.4% to reach about $1.3 billion at the end of the third quarter 2021.
The Gross External Debt on the Palestinian economic sectors reached $2,131 million, an increase of 4% compared with the previous quarter. Debt on government sector represented 62%, while debt on the banking sector (deposits of non-residents in banks operating in Palestine) reached 35%, and debt on other sectors (non-bank financial corporations, non-financial corporations, NGOs and households sector) amounted to 2%, and the lending between affiliated companies reached 1%.
Source: Palestinian News & Info Agency