The Palestinian economy’s investments outside Palestine outweigh investments in Palestine from abroad, today said the Palestinian Monetary Authority (PMA).
It said in a joint report with the Palestinian Central Bureau of Statistics (PCBS) announcing the preliminary results of the International Investment Position (IIP) and the External Debt that the net stock of the IIP amounted to $3,338 million at the end of the second quarter of 2021, an increase by 15% 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 $8,958 million, the foreign direct investment abroad contributed to 4%, portfolio investments abroad reached 17%, while other foreign investments abroad (mainly currency and deposits) reached 70% and reserve assets amounted to 9%, said the joint report.
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 $5,620 million, the foreign direct investment in Palestine contributed to 51%, portfolio investments in Palestine reached 13%, and other investments in Palestine (mainly loans and deposits from abroad) amounted to 36%.
At the sectoral level, the foreign investments in the bank’s sector contributed a major value in the foreign liabilities, represented by 35% of the total value of foreign liabilities on the Palestinian economy.
IIP is an accounting sheet that records the investments stocks for the residents in Palestine (individuals, institutions, and government) invested abroad under the name of assets, and compares them to the investments stocks owned by residents outside Palestine (individuals, institutions, and government) invested in Palestine under the name of liabilities.
The Gross External Debt on the Palestinian economic sectors reached $2,052 million, an increase of 1% compared with the previous quarter. Debt on government sector represented 64%, while debt on the banking sector (deposits of non-residents in banks operating in Palestine) reached 33%, 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%.