The Bank of Israel reported today that in the first quarter of 2009, the Israeli economy maintained a $3.9 billion surplus of foreign assets over foreign liabilities.
Israel reached a similarly sized surplus in the fourth quarter of 2008, the first time in ten years that there was a surplus of assets over liabilities. The reason that there was virtually no change was that there was a similar rise in overseas assets and in overseas liabilities.
Israel's foreign financial portfolio (tradable securities) rose by about $500 million, or 1%, in the first quarter, after a sharp drop in the fourth quarter of 2008. This was due to continued investment overseas, and a moderation in price drops on overseas stock exchanges.
The makeup of Israelis' overall portfolio changed very little, compared with the end of 2008: $35 billion (24% of the entire portfolio) in bank deposits at overseas banks, $22 billion (15%) in bonds, $14 billion (10%) in stocks, $55 billion (37%) in direct investments, and $21 billion (14%) in credit and other investments.
The financial portfolio of overseas investors in Israel rose 5%, due to the rise in Tel Aviv Stock Exchange (TASE) prices. This was in contrast to the fourth quarter, when falling prices reduced the portfolio by 15%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2009
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