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PCBS | PCBS&PMA: The Preliminary Results of the Palestinian Balance of Payments , Fourth Quarter, 2022

The Palestinian Central Bureau of Statistics (PCBS) and

The Palestine Monetary Authority (PMA)

 

A decrease in donors’ current transfers provided to the government as well as a decrease in compensations of the employees working in Israel led to increasing the deficit in current account of the Palestinian balance of payments by

 50% - fourth quarter of 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 fourth 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.

 

An incessant deficit in the Current Account (goods, services, income, current transfers) which totaled USD 905 million.  Mainly triggered by the deficit of the Trade Balance of Goods, which reached USD 2,116 million, as well as the deficit in Services Balance, which amounted to USD 345 million.

 

A decrease in the compensations of employees working in Israel during the fourth quarter of 2022

The surplus in Income Account (compensations of employees and investments income) amounted to USD 969 million. This surplus was due to compensations of the employees working in Israel, which reached USD 912 million despite a decrease this compensations decrease by 14% compared to previous quarter. As for the received investments income, it to USD 98 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.

 

A decrease in current transfers from abroad during the fourth quarter of 2022

The Current Transfers achieved a surplus value amounted to USD 587 million, where the current transfers for the government sector constituted 12% of the total transfers from abroad with a decrease of 68% compared to previous quarter, while the percentage of the transfers to other sectors reached 88%.  The donors’ current transfers constituted 8% of total transfers from abroad.

 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 787 million, the surplus in the Capital and Financial Account was mainly caused by the surplus in Financial Account which amounted to USD 679 million. There was a decrease in the reserve assets at PMA amounted to USD 108 million, compared to an increase of USD 175 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 2022

 

(Value in million USD)

Indicator

Q3- 2022

Q4- 2022

Current account (net)

-604

-905

  Goods (net)

-2,113

-2,116

    Exports (fob)

661

710

    Imports (fob)

2,774

2,826

  Services (net)

-352

-345

    Exports

242

260

    Imports

594

605

  Income (net)

1,093

969

    Receipts

1,150

1,023

        Compensation of employees

1,076

925

            Of which from Israel

1,063

912

        Investment income

74

98

    Payments

57

54

  Current transfers (net)

768

587

    Inflows

869

682

       To the government sector

256

81

           of which from Donors transfers

194

28

      To the other sectors

613

601

           of which from Donors transfers

25

25

    Outflows

101

95

Capital and financial account (net)

407

787

   Capital account (net)

113

108

      Capital transfers (net)

113

108

          Inflows

113

108

             To the government sector

37

29

                of which from Donors transfers

37

29

             To the other sectors

76

79

          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 2022

 

(Value in million USD)

Indicator

Q3- 2022

Q4- 2022

   Financial account (net)**

294

679

     Foreign Direct investment (net)

-95

128

         Change in investment abroad (net)

0

0

         Change in investment in Palestine (net)

-95

128

     Foreign  Portfolio investment (net)

-128

-74

         Change in Assets (net)

-134

18

         Change in Liabilities (net)

6

-92

     Foreign Other investment (net)

692

517

         Change in Assets (net)

604

550

            Of which Currency and deposits***

644

599

         Change in Liabilities (net)

88

-33

            Of which Loans nonresidents

78

15

            Of which Currency and deposits****

9

-49

Net errors and omissions

197

118

Overall balance

175

-108

Financing

-175

108

Exceptional financing

0

0

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

-175

108

 

*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.

 

 

 

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