The Central Bureau of Statistics (CBS) reported that Israel’s current account surplus widened to US$9.1 billion last year from US$6.9 billion the year before, while foreign investment rose.
Foreign direct investment –– acquisitions of Israeli companies by overseas companies – declined sharply last year to US$6.4 billion from US$11.8 billion.
But foreign investment in Israeli stocks and bonds jumped to $9.8 billion from US$1.8 billion in 2013. The CBS said the current account widened to 3% of gross domestic product last year from 2.4% in 2013 and just 0.8% in 2012.
The CBS said the current surplus widened for the full year in 2014 as Israel’s deficit in primary income, coming from Israelis working abroad and income from overseas investments, narrowed to US$4.8 billion from US$6.3 billion the year before. Its surplus in secondary income, such as foreign aid and donations, grew to US$10.1 billion from US$9.1 billion. Israel’s surplus in merchandise and service trade narrowed last year by US$476 million.