The Palestinian Central Bureau of Statistics and the Palestine Monetary Authority issued the preliminary results of the international investment position and external debt of Palestine as they stand at the end of the second quarter of 2023, as part of the periodic release of the international investment position and external debt statistics for Palestine, which represents a continuation of the joint efforts undertaken by the two institutions.

These results indicate that the disparity between the stocks of investments in the Palestinian economy employed outside Palestine and the stocks of foreign investments employed in the Palestinian economy (foreign assets - foreign liabilities) is still large, with a value of 3,397 million US dollars, an increase of 2% compared to the previous quarter.

58% of the total balances of external assets of the Palestinian economy are currency and deposits at the end of the second quarter of 2023, due to the lack of a Palestinian national currency.

In this context, the results indicate that the total stocks of the Palestinian economy’s assets invested abroad amounted to 9,514 million US dollars, distributed between 3% foreign direct investment, 17% portfolio investments, 67% other investments (the most important of which are currency and deposits), and 13% reserve assets. . At the sectoral level, the banking sector’s foreign investments (balances abroad, cash on hand, and portfolio investments abroad) constituted 66% of the total foreign assets of the Palestinian economy.

53% of the total stocks of foreign liabilities (commitments) on the Palestinian economy at the end of the second quarter 2023 are foreign direct investment. In contrast, the total stocks of foreign liabilities (commitments) on the Palestinian economy (stocks of non-residents invested in Palestine) amounted to about 6,117 million US dollars, distributed Between direct foreign investment by 53%, portfolio investments by 13%, and other investments (the most important of which are loans and deposits from abroad) by about 34%. At the sectoral level, foreign investments in the banking sector constituted about 35% of the total foreign liabilities on the Palestinian economy.

The government's external debt stock stabilized at about US$1.3 billion at the end of the second quarter of 2023.

Preliminary results indicated that the total balance of external debt on the Palestinian economic sectors amounted to approximately 2,109 million US dollars at the end of the second quarter of 2023, a decrease of 3% compared to the previous quarter. It was distributed between debt to the government sector at a rate of 62%, the banking sector at a rate of 35% (deposits of non-residents in banks operating in Palestine), and other sectors (non-banking financial companies, non-financial companies, private institutions, and households) at a rate of 2%, and borrowing between... Affiliate subsidiaries 1%.

It should be noted that the International Investment Position represents a record of the investment stocks of residents of Palestine (individuals, companies, and government) invested abroad under the name (assets) on the one hand, and the investment stocks owned by residents outside Palestine (individuals, companies, and governments) invested in Palestine under the name (liabilities) on the one hand. On the other hand. These assets and liabilities are divided (based on the “Guide for Preparing the Balance of Payments,” fifth edition, issued by the International Monetary Fund in 1993) into direct investment (investment of 10% or more of the capital of a non-resident enterprise), and portfolio investments (investment of less than 10% of the capital of a non-resident enterprise). value in addition to investment in bonds), other investments (trade credit balances, loans, currency, deposits and any other assets or liabilities), in addition to reserve assets, which are defined as the balances held by central banks/monetary authorities to address imbalances in the balance of payments, which It falls under the assets side only.

As for external debt, it represents a record of debt stocks owed by sectors of the Palestinian economy to non-residents, including loans from non-residents, deposits of non-residents placed in the banking sector in Palestine, Palestinian bonds purchased by non-residents, and debt transactions that take place between non-resident companies and those Subsidiaries and affiliates in Palestine, and any other obligations on the Palestinian economy other than those mentioned. External debt data is obtained by liabilities in the international investment position system (debt items), based on the External Debt Statistics Manual issued by the International Monetary Fund in 2003, which is consistent with the Balance of Payments Manual, fifth edition.