Israel’s International Investment Position (IIP), third quarter of 2020


  • In the third quarter of 2020, the balance of assets held abroad by Israeli residents increased by approximately $34 billion (6.5 percent), to about $558 billion at the end of September. The increase derived mostly from an increase in reserve assets and from purchases of equities that increased the balance of investment in the foreign securities portfolio. In addition, during the quarter there were price rises in Israeli residents’ portfolio of securities abroad.
  • Outstanding liabilities to abroad increased by approximately $13 billion (3.7 percent) in the third quarter, to about $371 billion at the end of the quarter. The increase derived primarily from purchases of government bonds and from direct investments in the economy. Also contributing to the increase in outstanding liabilities to abroad were price increases in the equity component of the portfolio of Israeli securities held by nonresidents.
  • Israel’s surplus of assets over liabilities vis-à-vis abroad increased by approximately $20 billion (12.6 percent) in the third quarter, to about $187 billion at the end of September.
  • The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) increased by $12 billion (6.6 percent) during the third quarter, to approximately $192 billion at the end of September.
  • The ratio of gross external debt to GDP increased by about 1.8 percentage points during the course of the third quarter, to 31.1 percent at the end of September. The increase in the debt to GDP ratio reflected an increase of 6.5 percent in the balance of external debt compared to an increase of only 0.3 percent in GDP (in dollar terms).

Full press release, including graphs and data