Palestine: Budget deficit over $600 million

New figures show that Palestine's budget deficit stands at over $600 million

The deficit in current account amounted to $672.6 million - 25.7% of the GDP - for the third quarter compared to the previous quarter, the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) said in a joint statement on Wednesday.

Preliminary results of the Palestinian balance of payments showed that the deficit in the trade balance of goods amounted to $1,232 million, or 47.1% of the GDP.

The deficit in services balance amounted to $84.2 million reflecting a decrease of 7.4% compared with the previous quarter caused by the difference between an increase in exports and a decrease of imports of government services.

According to the release, the surplus of $279.1 million was recorded in this account, showing an increase of 0.4% compared with the previous quarter. The surplus was in compensation of employees working in Israel, which reached $247.8 million.

Meanwhile, the investments income received from abroad amounted to $32.1 million, which was caused by the interest received on the Palestinian deposits in banks abroad.

According to the net current transfers, the surplus value amounted to $364.5 million, showing an increase of 49.9% compared with the previous quarter.

The donors’ current transfers were 27.4% of total value of receipts from abroad.

The surplus value of capital and financial account amounted to $614.1 million caused mainly by the surplus in financial account, which amounted to $532.7 million.

The changes on reserve assets flows amounted to $37.2 million in the PMA, which are reflected in the overall balance surplus due to the absence of other financing resources.