RAMALLAH, September 20, 2017 (WAFA) – An increase by 54.4% in deficit in the Current Account (goods, services, income, current transfers) was reported for the second quarter of this year when compared to the previous quarter and totaled $467.4 million, a joint report by Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) on the Balance of Payments said on Wednesday.
The sharp rise was mainly triggered by the deficit of the Trade Balance of Goods, which reached $1,055.9 million, as well as the deficit in Services Balance, which amounted to $213 million, the decrease of compensations of the Palestinians working in Israel by 16.2%, in addition to the remarkable decrease of current transfers of donors to government sector by 53.5% compared to the previous quarter.
The surplus in Income Account (compensations of employees and investments income) amounted to $418.7 million with a decrease of 11% compared to the previous quarter, said the joint report.
This surplus was due to compensations of the employees working in Israel, which reached $404.1 million.
As for the received investments income, it amounted to $39.4 million; and was mainly caused by the income received on the portfolio investments abroad, in addition to the interest received on the Palestinian deposits in banks abroad.
The Current Transfers achieved a surplus value amounting to $382.8 million with a decrease of 19% compared to the previous quarter. This was due to the decrease of the transfers of donors to the government sector.
The transfers to the government sector contributed with 19.6% of total transfers from abroad while transfers to other sectors, mainly private sector, were 80.4%. The donors’ current transfers constituted 33.7% of total transfers from abroad.
The preliminary results showed a surplus value for the Capital and Financial Account amounting to $564.1 million mainly caused by the surplus in the Capital Account which reached $89.6 million, and the surplus in Financial Account which amounted to $474.5 million.
There was an increase in the reserve assets at PMA amounting to $38 million compared with an increase of $108.6 million in the previous quarter.
M.K.
