RAMALLAH, December 28, 2016 (WAFA) - The primary results of the International Investment Position (IIP) - external assets – foreign liabilities) - for Palestine at the end of third quarter 2016 revealed that the net IIP amounted to about $1,275 million, which means that the Palestinian economy’s investment outside Palestine outweighs investment in Palestine from abroad, a report said Wednesday.

The joint report by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) on preliminary results of IIP and external debt statistics for Palestine as of end of third quarter 2016 said the resident cash deposits in foreign banks and foreign exchange in the Palestinian economy accounted for the bulk of the external assets, constituting 63.7 per cent of the total value of external assets.

The total stocks of external assets for Palestine amounted to $6,297 million, the foreign direct investment abroad had contributed to 7.1 per cent, portfolio investments abroad reached 18.4 per cent, while other foreign investments abroad, mainly currency and deposits, reached 69.2 per cent and reserve assets amounted to 5.3 per cent, said the report.

At sectoral level, the external investments of banks sector represented a large share of the external assets, standing at 73.6 per cent of the total value of external assets.

The total stocks of foreign liabilities in Palestine (stocks of non-residents invested in Palestine) had amounted to $5,022 million, the foreign direct investment in Palestine contributed to 51.2 per cent, portfolio investments in Palestine reached 14.9 per cent and other investments in Palestine, mainly loans and deposits from abroad, amounted to 33.9 per cent.

According to sectoral level, the foreign investments in banks sector contributed a major value in the foreign liabilities, represented by 36.5 per cent of the total value of foreign liabilities on Palestinian economy.

The gross external debt on different sectors of the Palestinian economy reached $1,705 million. The debt on government sector represented 62.0 per cent, while debt on banks sector reached 34.1 per cent, and debt on other sectors (Nonbank financial corporations, non-financial corporations, NGOs and household sector) amounted to 3.7 per cent, the lending between affiliated companies reached to 0.2 per cent.

M.K.