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