free hit counters
PCBS | PCBS&PMA: The Preliminary Results of the Palestinian Balance of Payments , Second Quarter, 2022

 

Palestinian Central Bureau of Statistics (PCBS) and

 The Palestine Monetary Authority (PMA(

 

The Deficit in Current Account is USD 775 Million of the Palestinian Balance of Payments – Second Quarter 2022          

 

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 2022 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 behind the current account deficit

An incessant deficit in the Current Account (goods, services, income, current transfers) which totaled USD 775 million.  Mainly triggered by the deficit of the Trade Balance of Goods, which reached USD 1,936 million, as well as the deficit in Services Balance, which amounted to USD 380 million.

 

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

The surplus in Income Account (compensations of employees and investments income) amounted to USD 953 million.  This surplus was due to compensations of the employees working in Israel, which reached USD 917 million. As for the received investments income, it amounted to USD 67 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 behind the current transfers surplus

The Current Transfers achieved a surplus value amounted to USD 588 million. where the current transfers for the government sector constituted 17% of the total transfers from abroad, while the percentage of the transfers to other sectors reached 83%.  The donors’ current transfers constituted 13% of total transfers from abroad.

 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 1 billion, the surplus in the Capital and Financial Account was mainly caused by the surplus in Financial Account which amounted to USD 901 million. There was a decrease in the reserve assets at PMA amounted to USD 34 million, compared to a decrease of USD 9 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 2022

 

 

(Value in million USD)

 

 

Indicator

Q1- 2022

Q2- 2022

Current account (net)

-623

-775

  Goods (net)

-1,810

-1,936

    Exports (fob)

622

601

    Imports (fob)

2,432

2,537

  Services (net)

-347

-380

    Exports

239

231

    Imports

586

611

  Income (net)

987

953

    Receipts

1,034

997

        Compensation of employees

965

930

            Of which from Israel

952

917

        Investment income

69

67

    Payments

47

44

  Current transfers (net)

547

588

    Inflows

642

682

       To the government sector

88

114

           of which from Donors transfers

33

61

      To the other sectors

554

568

           of which from Donors transfers

25

25

    Outflows

95

94

Capital and financial account (net)

514

1000

   Capital account (net)

103

99

      Capital transfers (net)

103

99

          Inflows

103

99

             To the government sector

12

25

                of which from Donors transfers

12

25

             To the other sectors

91

74

          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 2022

 

(Value in million USD)

 

 

Indicator

Q1- 2022

Q2- 2022

   Financial account (net)**

411

901

     Foreign Direct investment (net)

106

108

         Change in investment abroad (net)

5

8

         Change in investment in Palestine (net)

101

100

     Foreign  Portfolio investment (net)

17

157

         Change in Assets (net)

-1

100

         Change in Liabilities (net)

18

57

     Foreign Other investment (net)

279

602

         Change in Assets (net)

290

659

            Of which Currency and deposits***

339

652

         Change in Liabilities (net)

-11

-57

            Of which Loans nonresidents

-4

35

            Of which Currency and deposits****

-9

-93

Net errors and omissions

109

-225

Overall balance

-9

-34

Financing

9

34

Exceptional financing

0

0

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

9

34

 

*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