free hit counters
PCBS | PCBS&PMA: The Preliminary Results of the Palestinian Balance of Payments , Second Quarter, 2021

Palestinian Central Bureau of Statistics (PCBS) and the Palestine

Monetary Authority (PMA(

 

The Deficit in Current Account is USD 236 Million

of the Palestinian Balance of Payments – Second Quarter 2021

 

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 second quarter of 2021 under the joint issuance cycle. It should be noted that the data excludes those parts of Jerusalem which were annexed by Israeli occupation in 1967.

 

The deficit in trade balance of goods is the main reason for the current account deficit

An incessant deficit in the Current Account (goods, services, income, current transfers) which totaled USD 236 million.  This deficit in current account mainly triggered by the deficit of the Trade Balance of Goods, which reached USD 1,354 million, as well as the deficit in Services Balance, which amounted to USD 221 million.

 

The compensations of employees working in Israel are the main reason for the income account surplus

The surplus in Income Account (compensations of employees and investments income) amounted to USD 831 million.  This surplus was due to compensations of the employees working in Israel, which reached USD 766 million. As for the received investments income, it amounted to USD 76 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 from abroad to other (non-government) sectors are the main reason for the current transfers surplus

The Current Transfers achieved a surplus value amounted to USD 508 million with an increase of 20% compared to the previous quarter. The total transfers from abroad amounted to USD 592 million, of which 21% were the transfers to the government sector, while the percentage of the transfers to other sectors reached 79%.  The donors’ current transfers constituted 18% of total transfers from abroad.

 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 81 million, the surplus in the Capital and Financial Account was mainly caused by the surplus in Capital Account which amounted to USD 109 million. There was an increase in the reserve assets at PMA amounted to USD 50 million, compared to an increase of USD 35 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.

 

 

 

 

Table 1: Balance of Payments In Palestine* for the first and second quarters 2021

 

(Value in million USD)

 

 

Indicator

Q1- 2021

Q2- 2021

Current account (net)

-428

-236

Goods (net)

-1,363

-1,354

Exports (fob)

464

521

Imports (fob)

1,827

1,875

Services (net)

-237

-221

Exports

242

271

Imports

479

492

Income (net)

750

831

Receipts

803

855

Compensation of employees

720

779

Of which from Israel

707

766

Investment income

83

76

Payments

53

24

Current transfers (net)

422

508

Inflows

503

592

To the government sector

50

126

of which from Donors transfers

9

82

To the other sectors

453

466

of which from Donors transfers

25

25

Outflows

81

84

Capital and financial account (net)

444

81

Capital account (net)

74

109

Capital transfers (net)

74

109

Inflows

74

109

To the government sector

11

34

of which from Donors transfers

11

34

To the other sectors

64

75

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 first and

 second quarters 2021

 

(Value in million USD)


 

Indicator

Q1- 2021

Q2- 2021

Financial account (net)**

369

-28

Foreign Direct investment (net)

43

31

Change in investment abroad (net)

-1

-69

Change in investment in Palestine (net)

44

100

Foreign  Portfolio investment (net)

-39

-119

Change in Assets (net)

-21

-212

Change in Liabilities (net)

-18

93

Foreign Other investment (net)

400

110

Change in Assets (net)

423

102

Of which Currency and deposits***

421

104

Change in Liabilities (net)

-23

8

Of which Loans nonresidents

-10

25

Of which Currency and deposits****

-14

4

Net errors and omissions

-16

155

Overall balance

35

50

Financing

-35

-50

Exceptional financing

0

0

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

-35

-50

 

*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.

 

Close
Close