The primary results of a joint report by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) on the preliminary results of the International Investment Position (IIP) and External Debt statistics for Palestine as of the end of the fourth quarter 2020 showed that the Palestinian economy’s investments outside Palestine outweigh investments in Palestine from abroad.
IIP (external assets – foreign liabilities) for Palestine at the end of the fourth quarter of 2020 revealed that the net IIP amounted to $2,859 million, an increase of 18% compared with the previous quarter, said the report.
It said 67% of the total external assets of the Palestinian economy are currency and deposits, due to the absence of a Palestinian national currency.
The total stocks of External Assets for the Palestinian economy amounted to $8,289 million, the Foreign Direct Investment Abroad contributed to 3%, Portfolio Investments abroad reached 15%, while Other Foreign Investments Abroad (mainly currency and deposits) reached 74% and Reserve Assets amounted to 8%. At the sectoral level, the external investments of the banks’ sector represented a large share of the external assets, standing at 72% 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 $5,430 million, the Foreign Direct Investment in Palestine contributed to 50%, Portfolio Investments in Palestine reached 12%, and Other Investments in Palestine (mainly loans and deposits from abroad) amounted to 38%. 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 Gross External Debt on the Palestinian economic sectors reached $2,052 million, an increase by 2% compared with the previous quarter, the debt on government sector represented 64%, while debt on banks sector 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 less than 1%.