RAMALLAH, Sunday, September 29, 2019 (WAFA) – The primary results of the International Investment Position (external assets – foreign liabilities) for Palestine at the end of the second quarter 2019 revealed that the net IIP amounted to $1,921 million, increased by 11% compared with previous quarter, the Palestinian Central Bureau of Statistics (PCBS) announced today.

According to PCBS, this increase means that the Palestinian economy’s investments outside Palestine outweighs investments in Palestine from abroad.

The total stocks of External Assets for Palestinian economy amounted to $7,255 million at the end of the second quarter 2019. The Foreign Direct Investment Abroad contributed to 5%, while Portfolio Investments abroad contributed by 19%. Meanwhile, Other Foreign Investments Abroad (mainly currency & deposits, clearance revenue) contributed by 68% and Reserve Assets amounted to 8%. 

At sectoral level, the external investments of the banks sector represented a large share of the external assets, standing at 60% of the total value of external assets for Palestinian economy.

The total stocks of Foreign Liabilities in Palestine (stocks of non-residents invested in Palestine) amounted to $5,334 million at the end of the second quarter 2019, the Foreign Direct Investment in Palestine contributed to 53%, Portfolio Investments in Palestine reached 15%, and Other Investments in Palestine (mainly loans and deposits from abroad) amounted to 32%. At sectoral level, the foreign investments in banks sector contributed a major value in the foreign liabilities, represented by 39% of the total value of foreign liabilities on Palestinian economy.

The International Investment Position (IIP) is an accounting sheet that records the investments stocks for the residents in Palestine (individuals, institutions and government) invested in the rest of the world (abroad) under the name of “assets”, and compares them to the investments stocks owned by residents outside Palestine (individuals, institutions and government) invested in Palestine under the name of (liabilities).

The Balance of Payments Manual - fifth edition, issued by the International Monetary Fund in 1993, divides the assets and liabilities into direct investment (investment by 10% and more in the non-resident capital), and portfolio investment (investment less than 10% in the non-resident capital as well as investment in bonds), and other investments.

M.N