عربي
The Palestinian Central Bureau of Statistics (PCBS) and The Palestine Monetary Authority (PMA)
A sharp decline in the compensation of Palestinian workers in Israel and net current transfers during the third quarter of 2024 compared to the corresponding quarter of 2023, led to an increase in the current account deficit, reaching USD 870 million
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 2024 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.
Preliminary data for the balance of payments in the third quarter of 2024 indicate a continued deficit in the current account (goods, services, income, and current transfers), amounting to USD 870 million with an increase of 175% compared to the corresponding quarter of 2023. The trade balance deficit for goods reached USD 1,333 million, in addition to a services balance deficit of USD 263 million.
The data indicates a decrease in the net income account during the third quarter of 2024, by 79% compared to the corresponding quarter of 2023, reaching USD 275 million. Whereas, compensation for Palestinian workers in Israel decreased by 88% compared to the corresponding quarter of 2023, reached USD 143 million. Meanwhile, foreign investment income amounted to USD 145 million, primarily resulting from interest earned on Palestinian deposits in foreign banks.
A decrease of 21% was recorded in the net current transfers from abroad during the third quarter of 2024 compared to the corresponding quarter of 2023.
The data indicates a 21% decrease in the net current transfers, reaching USD 451 million compared to the corresponding quarter of 2023. Where the net current transfers from abroad to other sectors (non-governmental) decreased by 52% compared to the corresponding quarter of 2023. This decline is primarily attributed to the ongoing Israeli aggression against the Gaza Strip and the West Bank, significantly affecting the financial and economic activities in the region. It is noted that current transfers to the government sector accounted for only 45% of the total current transfers from abroad, while transfers to other sectors constituted 55%. It is worth mentioning that donor transfers represented only about 48% of the total current transfers from abroad.
The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 720 million, mainly caused by the surplus in the Financial Account which amounted to USD 632 million. There was an increase in the reserve assets at PMA amounted to USD 168 million, compared to a decrease of USD 23 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 quarter 2023 and the second and third quarters 2024
|
(Value in million USD) |
|
|
|
|
Indicator |
Q3-2023* |
Q2-2024 |
Q3-2024 |
|
Current account (net) |
-316 |
774- |
870- |
|
Goods (net) |
-1,848 |
-1,064 |
-1,333 |
|
Exports (fob) |
697 |
521 |
612 |
|
Imports (fob) |
2,545 |
1,585 |
1,945 |
|
Services (net) |
-366 |
-210 |
-263 |
|
Exports |
149 |
111 |
131 |
|
Imports |
515 |
321 |
394 |
|
Income (net) |
1,327 |
191 |
275 |
|
Receipts |
1,340 |
207 |
301 |
|
Compensation of employees |
1,216 |
131 |
156 |
|
Of which from Israel |
1,205 |
118 |
143 |
|
Investment income |
124 |
76 |
145 |
|
Payments |
13 |
16 |
26 |
|
Current transfers (net) |
571 |
309 |
451 |
|
Inflows |
715 |
365 |
511 |
|
To the government sector |
124 |
114 |
230 |
|
of which from Donors transfers |
35 |
106 |
221 |
|
To the other sectors |
591 |
251 |
281 |
|
of which from Donors transfers |
38 |
25 |
25 |
|
Outflows |
144 |
56 |
60 |
|
Capital and financial account (net) |
188 |
653 |
720 |
|
Capital account (net) |
144 |
73 |
88 |
|
Capital transfers (net) |
144 |
73 |
88 |
|
Inflows |
144 |
73 |
88 |
|
To the government sector |
50 |
20 |
24 |
|
of which from Donors transfers |
50 |
20 |
24 |
|
To the other sectors |
94 |
53 |
64 |
|
Outflows |
0 |
0 |
0 |
|
Acquisition / disposal of non-Produced, non-financial assets non-financial assets (net) |
0 |
0 |
0 |
* Data of third quarter of 2023 are revised based on the actual annual data of balance of payments for 2023
Table 1 (Cont.): Balance of Payments In Palestine*
for the third quarter 2023 and the second and third quarters 2024
|
(Value in million USD) |
|
|
|
|
Indicator |
Q3-2023 |
Q2-2024 |
Q3-2024 |
|
Financial account (net)** |
44 |
580 |
632 |
|
Foreign Direct investment (net) |
21 |
77 |
87 |
|
Change in investment abroad (net) |
0 |
-11 |
0 |
|
Change in investment in Palestine (net) |
21 |
88 |
87 |
|
Foreign Portfolio investment (net) |
-78 |
-87 |
-139 |
|
Change in Assets (net) |
67- |
-71 |
-90 |
|
Change in Liabilities (net) |
-11 |
-16 |
-49 |
|
Foreign Other investment (net) |
124 |
567 |
852 |
|
Change in Assets (net) |
102 |
571 |
886 |
|
Of which Currency and deposits*** |
241 |
947 |
1,033 |
|
Change in Liabilities (net) |
22 |
-4 |
-34 |
|
Of which Loans nonresidents |
7 |
-6 |
11 |
|
Of which Currency and deposits**** |
14 |
2 |
-45 |
|
Net errors and omissions |
128 |
121 |
150 |
|
Overall balance |
23 |
-23 |
168 |
|
Financing |
-23 |
23 |
-168 |
|
Exceptional financing |
0 |
0 |
0 |
|
Change in Reserve assets (- = Increase/+= decrease) |
-23 |
23 |
-168 |
|
*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. |