Palestine's budget deficit increasing
The deficit value of the [Palestinian] Current Account amounted to $2,192.6 million (21.5% of the GDP in current prices), compared with a deficit in year 2010 which amounted to $690.9 million.
A joint press release by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) stated in the preliminary results of the Palestinian Balance of Payments 2011 that the deficit in the Trade Balance of goods amounted to $4,626.0 million (45.5% of the GDP in current prices).
It said that the deficit has increased by 26.6% compared with the year 2010.
The deficit in Services Balance amounted to $103.6 million reflecting a decrease of 66.8% compared with the year 2010; the decline in the deficit of Services Balance was caused by the increase of the Exports in Travel services, and decrease of imports of government Services.
According to the release, the surplus of $1,217.2 million was recorded in this account, showing an increase of 10.8% compared with year 2010.
The surplus was caused mainly by the surplus in Compensations of Employees working in Israel which reached $1,152.7 million, reflecting an increase of 16.3% compared with the year 2010.
Meanwhile, the investments income received from abroad amounted to $99.3 million showing a decrease of 26.9% compared with the year 2010, caused mainly by a decrease in the earnings received on the Palestinian Foreign Direct Investments (FDI) and Portfolio Investments, invested abroad.
According to the Net Current Transfers, the surplus value amounted to $1,319.8 million showing a decrease of 39.3% compared with the year 2010.
The donors’ current transfers was 43.4% of total value of receipts from abroad, meanwhile the current transfers received from abroad other than donors was 56.6% of total current transfers from abroad.
The total value of receipts from abroad distributed as 38.0% for the government sector and 62.0% for other sectors (Private, Household and non-government organizations).
The surplus in the Financial Account (Direct Investments, Portfolio Investments, Other Investments, and Reserve Assets) which amounted to $1,619.5 million, caused mainly by the surplus in the item of currency and deposits in other investments, meanwhile the surplus in Capital Account amounted to $536.2 million.
The changes on Reserve Assets flows amounted to $33.7 million in 2011, which are reflected in the overall Balance surplus due to the absence of other financing resources.
- Livelihoods trump lawlessness: young working Egyptians risk everything in Libya
- RIP: King Abdullah leaves behind profound legacy for the Saudi Economy
- Impetus from within: why the Arab World needs a very Arab 'Marshall Plan'
- 'Fiscal juggling': just how many economic priorities will Saudi Arabia's new King have to focus on?
- Despite Erdogan's 'harsh rhetoric', Turkish-Israeli is still booming