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PCBS | PCBS&PMA: The Preliminary Results of the Palestinian Balance of Payments , Second Quarter Third Quarter, 2020

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA)

 

 

The press release of the Palestinian Balance of Payments – Second and Third Quarters 2020.

Deficit in Current Account is USD 200 Million

            of the Palestinian Balance of Payments – Third Quarter 2020           

 

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the Palestinian Balance of Payments (BoP) for the third quarter of 2020 under the joint issuance cycle for the Palestinian Balance of Payments (BoP). It should be noted that the data excludes those parts of Jerusalem which were annexed by Israel occupation in 1967.

 

An incessant deficit in the Current Account (goods, services, income, current transfers) which totaled USD 200 million. This deficit in current account mainly triggered by the deficit of the Trade Balance of Goods, which reached USD 1,144 million, as well as the deficit in Services Balance, which  amounted to USD 207 million.

 

The surplus in Income Account (compensations of employees and investments income) amounted to USD 697 million. This surplus was due to compensations of the employees working in Israel, which reached USD 653 million (with an increase of 58% compared to the previous quarter). As for the received investments income, it amounted to USD 71 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 amounted to USD 454 million with a decrease of 2% compared to the previous quarter. The total transfers from abroad amounted to USD 543 million, of which 22% were the transfers to the government sector, while the percentage of the transfers to other sectors reached 78%.  The donors’ current transfers constituted 19% of total transfers from abroad.

 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 22 million[1] the surplus in the Capital and Financial Account was mainly caused by the surplus in Capital Account which amounted to USD 84 million. There was a decrease in the reserve assets at PMA amounted to USD 74 million, compared to a decrease of USD 41 million in the previous quarter.

 

 

 

It is worth mentioning that the Balance of Payments (BoP) is used to determine the economic position of a country compared to other countries worldwide, and to calculate the size of its external debt. This data enables researchers and decision makers to devise informed economic policies and development plans to improve their external balance to guarantee the stability of the state and sustain the economic growth. BoP data was prepared according to the latest international recommendations taking into account the specificity of the Palestinian situation.

 

Issued on: 30/12/2020

 

 


Table 1: Balance of Payments In Palestine* for the second and third quarters 2020

 

(Value in million USD)

 

 

Indicator

Q2- 2020

Q3- 2020

Current account (net)

-232

-200

  Goods (net)

-946

-1,144

    Exports (fob)

369

469

    Imports (fob)

1,315

1,613

  Services (net)

-174

-207

    Exports

150

191

    Imports

324

398

  Income (net)

424

697

    Receipts

470

737

        Compensation of employees

425

666

            Of which from Israel

412

653

        Investment income

45

71

    Payments

47

41

  Current transfers (net)

464

454

    Inflows

534

543

       To the government sector

188

117

           of which from Donors transfers

163

79

      To the other sectors

347

426

 of which from Donors transfers

25

25

    Outflows

70

89

Capital and financial account (net)

206

22

   Capital account (net)

79

84

      Capital transfers (net)

79

84

          Inflows

79

84

             To the government sector

41

27

                of which from Donors transfers

41

27

             To the other sectors

38

57

          Outflows

0

0

Acquisition / disposal of non-Produced, non-financial assets non-financial assets (net)

0

0

 

 

 

 

 

 

 

 

 

Table 1 (Cont.): Balance of Payments In Palestine* for the second and third quarters 2020

 

(Value in million USD)


 

Indicator

Q2-2020

Q3- 2020

   Financial account (net)**

126

-62

Foreign Direct investment (net)

111

61

         Change in investment abroad (net)

50

5

         Change in investment in Palestine (net)

60

56

     Foreign  Portfolio investment (net)

-40

54

         Change in Assets (net)

8

86

         Change in Liabilities (net)

-48

-33

     Foreign Other investment (net)

16

-251

         Change in Assets (net)

64

-265

            Of which claims on Israel of clearance revenues

-78

-466

            Of which Currency and deposits***

124

192

         Change in Liabilities (net)

-48

15

            Of which Loans nonresidents

5

9

            Of which Currency and deposits****

-54

5

Net errors and omissions

26

178

Overall balance

-41

-74

Financing

41

74

Exceptional financing

0

0

Change in Reserve assets (- = Increase/+= decrease)

41

74

 

*The data excludes those part of Jerusalem which were annexed by Israeli occupation in 1967.

** Include reserve assets.

***Currency and deposits: Including the cash of foreign currency in the banks and the deposits

of the Palestinian institutions deposited abroad.

****Currency and deposits: Includes the deposits of non-residents deposited in Local banks.

 



[1]It includes the value of the claims on Israel from clearance revenues, during the quarter.

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