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

   

  • In the fourth quarter of 2020, the balance of assets held abroad by Israeli residents increased by approximately $48 billion (9 percent), to about $606 billion at the end of December. The increase derived mainly from an increase in the foreign securities portfolio—a combination of increases in equity prices and growth in reserve assets.
  • Outstanding liabilities to abroad increased by approximately $38 billion (10 percent) in the fourth quarter, to about $411 billion at the end of the quarter. The increase derived primarily from growth in the value of the portfolio of Israeli securities held by nonresidents as a result of equity price rises in the portfolio and from direct investments in the economy.
  • Israel’s surplus of assets over liabilities vis-à-vis abroad in the fourth quarter increased by approximately $9 billion (5 percent), to about $197 billion at the end of December.
  • The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) increased by $8 billion (4 percent) during the fourth quarter, to approximately $200 billion at the end of December.
  • The ratio of gross external debt to GDP increased by about 1.6 percentage points during the course of the fourth quarter, to 34 percent at the end of December. The increase in the debt to GDP ratio reflected an increase of 7 percentage points in the balance of external debt as opposed to an increase of 2 percentage points in GDP (in dollar terms).