Prices are rising, especially on basic products as well as foreign trade, which is increasing by 24% over one year and Palestine does not give foreign investors enough confidence to invest in the country.
According to the Palestinian Central Bureau of Statistics (PCBS) and the Palestinian Monetary Authority (PMA), at the end of the fourth quarter of 2021, the net IIP (external assets – external liabilities) amounted to 3,659 million dollars, up 1% from the previous quarter, meaning that investments outside Palestine outweighed investments from abroad.
Total assets amounted to USD 9.63 billion divided between foreign direct investment (3%), portfolio investment (16%), other investment (72%, the largest of which are currency and deposits) and asset reserves (9%).
Total stocks of foreign liabilities (stocks of non-residents) were $5,969 million, split between foreign direct investment (50%), portfolio investment (14%) and other investment (36%) .
The gross external debt on the economic sectors reached 2,159 million dollars (+ 1% compared to the previous quarter) distributed between the debt on the public sector (61%), the debt on the banking sector (36% ), debt to other sectors (2%) and loans between affiliated companies (1%).
The consumer price index continues to rise
At the end of February 2022, the consumer price index increased by 2.97% compared to February 2021 (2.99% in the Gaza Strip and 2.77% in the West Bank). The main increases concern the price of fresh chicken (+6.77%), pulses (+6.41%), fuels (diesel: +3.4%, petrol: +2.71%) and vegetables costs (+2.39%).
How is foreign trade changing?
The trade deficit increased by 1% in January 2022 compared to December 2021. Year-on-year, it increased by 24% and reached USD 485.5 million.
Exports of goods decreased by 16% in January 2022 compared to December 2021. Year-on-year, they increased by 30% and reached USD 132.8 million. Exports to Israel decreased by 18% in January 2022 compared to December 2021 and accounted for 85% of total exports in January 2022.
At the same time, imports of goods decreased by 3% in January 2022 compared to December 2021. Year-on-year, they increased by 26% and reached USD 618.3 million. Imports from Israel decreased by 4% in January 2022 compared to December 2021 and represented 51% of total imports in January 2022.
Source Embassy of France in Lebanon