free hit counters
PCBS | PCBS&PMA: The Preliminary Results of the Palestinian Balance of Payments , Fourth Quarter, 2020

Palestinian Central Bureau of Statistics (PCBS) and the Palestine

Monetary Authority (PMA)

 

Deficit in Current Account is USD 292 Million

of the Palestinian Balance of Payments – Fourth 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 fourth 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 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 292 million.  This deficit in current account mainly triggered by the deficit of the Trade Balance of Goods, which reached USD 1,276 million, as well as the deficit in Services Balance, which amounted to USD 228 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 741 million.  This surplus was due to compensations of the employees working in Israel, which reached USD 705 million (with an increase of 8% compared to the previous quarter). As for the received investments income, it amounted to USD 58 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 470 million with an increase of 4% compared to the previous quarter. The total transfers from abroad amounted to USD 556 million, of which 17% were the transfers to the government sector, while the percentage of the transfers to other sectors reached 83%.  The donors ’current transfers constituted 15% of total transfers from abroad.

 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 383 million the surplus in the Capital and Financial Account was mainly caused by the surplus in Financial Account which amounted to USD 266 million. There was an increase in the reserve assets at PMA amounted to USD 71 million, compared to a decrease of USD 74 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 third and fourth quarters 2020

 

(Value in million USD)

 

 

 

Indicator

Q3- 2020

Q4- 2020

 

Current account (net)

-200

-292

 

Goods (net)

-1,144

-1,275

 

Exports (fob)

469

541

 

Imports (fob)

1,613

1,817

 

Services (net)

-207

-228

 

Exports

191

220

 

Imports

398

448

 

Income (net)

697

741

 

Receipts

737

775

 

Compensation of employees

666

717

 

Of which from Israel

653

705

 

Investment income

71

58

 

Payments

41

34

 

Current transfers (net)

454

470

 

Inflows

543

556

 

To the government sector

117

95

 

of which from Donors transfers

79

56

 

To the other sectors

426

461

 

of which from Donors transfers

25

25

 

Outflows

89

86

 

Capital and financial account (net)

22

383

 

Capital account (net)

84

117

 

Capital transfers (net)

84

117

 

Inflows

84

117

 

To the government sector

27

41

 

of which from Donors transfers

27

41

 

To the other sectors

57

76

 

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 third and fourth quarters 2020






 

(Value in million USD)


 

Indicator

Q3- 2020

Q4- 2020

Financial account (net)**

-62

266

Foreign Direct investment (net)

61

-59

Change in investment abroad (net)

5

-1

Change in investment in Palestine (net)

56

-58

Foreign  Portfolio investment (net)

54

70

Change in Assets (net)

86

28

Change in Liabilities (net)

-33

42

Foreign Other investment (net)

-251

325

Change in Assets (net)

-265

288

Of which claims on Israel of clearance revenues

-466

765

Of which Currency and deposits***

192

-484

Change in Liabilities (net)

15

37

Of which Loans nonresidents

9

22

Of which Currency and deposits****

5

-71

Net errors and omissions

178

-91

Overall balance

-74

71

Financing

74

-71

Exceptional financing

0

0

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

74

-71

 

 

*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