Israel’s International Investment Position (IIP), Third Quarter of 2017
· In the third quarter of 2017, the balance of assets held by Israeli residents abroad increased by about $12.7 billion (about 3.1 percent). There were net investments in foreign bonds by Israeli residents, mainly domestic banks and households, and there were net realizations in foreign shares, mainly by households, which were offset by the increase in prices of foreign tradable securities held by Israeli residents.
· Outstanding liabilities to abroad declined by approximately $5.7 billion (2 percent). The decrease derived mainly from declines in prices of Israeli stocks held by nonresidents.
· The ratio of gross external debt to GDP increased during the course of the third quarter, to 26.7 percent at the end of September—the balance of gross external debt increased at a higher rate than the rate of increase in GDP.
· Israel’s surplus of assets over liabilities vis-à-vis abroad increased in the third quarter by approximately $18 billion, to about $135 billion at the end of September, mainly as a result of an increase in prices of foreign stocks held by Israeli residents ($4.6 billion, 3.9 percent), alongside a decline in prices of Israeli stocks held by nonresidents ($11.2 billion, 9.5 percent).
· The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) increased in the third quarter by about $6.4 billion (4.4 percent), to about $150 billion at the end of September.