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

 Full press release ​
Graph​

  •  In the first quarter of 2020, the balance of assets held abroad by Israeli residents decreased by about $21 billion (4.3 percent) to about $476 billion at the end of March. The decrease derived mostly from declines in prices of foreign equities held by Israelis in the securities portfolio. These price declines were partly offset by the flow of other investments abroad by Israelis, most of which was the flow of Israeli banks’ deposits abroad at a scope of about $4.8 billion.
  • Outstanding liabilities to abroad decreased by approximately $12 billion (3.6 percent) in the first quarter, to about $323 billion at the end of March. The decrease derived primarily from declines in prices of Israeli equities held by nonresidents. In contrast, during the first quarter of 2020 there was  a positive flow in direct investment ($4.6 billion) and in financial investments ($2.3 billion)
  • Israel’s surplus of assets over liabilities vis-à-vis abroad decreased by approximately $9 billion (5.7 percent) in the first quarter, to about $153 billion at the end of March.
  • Against the background of the coronavirus crisis, there were sharp price declines that impacted more on the assets side than on the liabilities side vis-à-vis abroad. The price declines, mainly in March, reduced the balance of assets by about $30 billion (about 6 percent of the balances). In parallel, the price declines reduced the balance of liabilities by about $15 billion (about 4 percent of the balance).
  • The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) decreased by $3 billion (1.7 percent) during the first quarter, to approximately $167 billion at the end of March.
  • ​The ratio of gross external debt to GDP decreased by about 0.2 percentage points during the course of the first quarter, to 26.1 percent at the end of March. The decline in the debt to GDP ratio reflected a rate of increase in the GDP that was higher than the rate of increase in the balance of gross external debt.