The net stock of the international investment position amounted to $3,750 million at end of first quarter of 2022

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the international investment position (IIP), and external debt statistics for Palestine as of the end of the first quarter 2022.

The primary results of the IIP (external assets – foreign liabilities) for Palestine at the end of the first quarter of 2022 revealed that the net IIP amounted to $3,750 million, an increase of 2% compared with the previous quarter, which means that the Palestinian economy’s investments outside Palestine outweigh investments in Palestine from abroad.

The total stocks of external assets for the Palestinian economy amounted to $9,788 million, the foreign direct investment abroad contributed to 3%, portfolio investments abroad reached 16%, while other foreign investments abroad (mainly currency and deposits) reached 72% and reserve assets amounted to 9%.

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 70% 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 $6,038 million, the foreign direct investment in Palestine contributed to 51%, portfolio investments in Palestine reached 14%, and other investments in Palestine (mainly loans and deposits from abroad) amounted to 35%.

At the sectoral level, the foreign investments in the banks sector contributed a major value to the foreign liabilities, represented by 36% of the total value of foreign liabilities in the Palestinian economy.

The gross external debt of the Palestinian economic sectors reached $2,147 million, a decrease of 1% compared with the previous quarter. Debt in the government sector represented 61%, while debt in the banking sector (deposits of non-residents in banks operating in Palestine) reached 36%, and debt in 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: Palestine News & Info Agency