RAMALLAH, March 28, 2017 (WAFA) – The deficit in the current account (goods, services, income, current transfers) in fourth quarter 2016 reached $365.1 million, marking an increase of 16.1% compared to the previous quarter, the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) said in a joint report published Tuesday.

The increase in deficit was mainly triggered by the increase in the deficit of the trade balance of goods by 5.6%, which reached $1,126.6 million, as well as the increase of deficit in services balance by about 4.9%, which amounted to $232.5 million, due to the increase of the import of transportation services in addition to other business services.

The surplus in income account (compensations of employees and investments income) in fourth quarter 2016 amounted to $408.6 million, an increase of 1.8% compared to the previous quarter, due to compensations of employees working in Israel, which reached $396.7 million.

As for the received investments income, it amounted to $29.6 million, and was mainly caused by the income received on the portfolio investments abroad, in addition to the interest received on deposits in banks abroad.

The current transfers achieved a surplus value amounting to $585.4 million, an increase of 2.2% compared to the previous quarter, due to the increase of the transfers to the other sectors.

The transfers to the government sector contributed 20.1% of total transfers from abroad, while the transfers to other sectors (mainly private sector) was 79.9%. The donors’ current transfers constituted 29.8% of total transfers from abroad.

The results showed a surplus value for the capital and financial account amounting to $354.5 million, an increase of 25.9% compared to the previous quarter, caused by the surplus in the capital account, which reached $144.7 million, and the surplus in financial account, which amounted to $209.8 million.

There was a decrease in the reserve assets at PMA amounting to $22.6 million, with a decrease of $66.6 million compared to the previous quarter.

M.K.