Israel’s International Investment Position (IIP), Third Quarter of 2016
· In the third quarter of 2016, Israel’s surplus of assets over liabilities vis-à-vis abroad increased by about $10.6 billion (about 12.4 percent), further to an increase of about $5.5 billion (7 percent) in the second quarter of the year. Most of the increase in the surplus during the third quarter of 2016 is a result of an increase in the prices of foreign financial shares held by Israelis, and of a decline in the prices of Israeli financial shares held by nonresidents.
· The increase in the value of the portfolio of Israelis’ assets held abroad in the third quarter ($15.4 billion, 4.3 percent) was concentrated in direct investments in foreign share capital ($7.6 billion, 9.4 percent) and an increase in the prices of foreign financial shares held by Israelis ($3.1 billion, 5.3 percent).
· The increase in the gross balance of liabilities to abroad in the third quarter ($4.8 billion, 1.8 percent) derived mainly from net investments by nonresidents in financial share capital ($4.4 billion, 5 percent) and direct investments ($2.8 billion, 3 percent), which were partly offset by a decline in the prices of Israeli shares held by nonresidents ($2.1 billion, 2.3 percent).
· The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) increased in the third quarter of 2016 by about $4.6 billion (3.8 percent), to about $125 billion at the end of the quarter.
· The gross external debt to GDP ratio declined in the third quarter, to 28.2 percent at the end of September, the result of a decline in the shekel value of gross external debt that was greater than the increase in GDP.