The Bank of Israel reported that Israel’s surplus of assets over liabilities vis-à-vis abroad fell by USD 11 billion, or 4 percent, in the first quarter of 2026, reaching about USD 250 billion at the end of March. The change reflected a rise in outstanding liabilities to abroad of about USD 6 billion to USD 658 billion and a decline of about USD 5 billion in Israeli residents’ foreign assets to USD 909 billion. Higher liabilities were driven by stronger nonresident direct investment in Israel compared with the previous four quarters and by higher prices of Israeli securities held by nonresidents. The decline in assets mainly reflected price falls and net sales of foreign securities by Israeli residents. The Bank of Israel also noted several large transactions and transfers between investment channels during the quarter, which reduced financial investments, increased foreign direct investment in the economy and lowered direct investment by Israeli residents abroad. In debt instruments alone, negative net external debt declined by about USD 5 billion, or 1.5 percent, to about USD 325 billion at the end of March. The ratio of gross external debt to gross domestic product in dollar terms rose by 0.3 percentage points to about 27 percent.
Bank of Israel2026-06-16
Bank of Israel reports USD 11 billion fall in Israel’s net foreign asset position in first quarter
The Bank of Israel reported that Israel’s net foreign asset position narrowed by USD 11 billion in the first quarter of 2026 to about USD 250 billion. External liabilities rose by USD 6 billion, supported by stronger nonresident direct investment and higher prices of Israeli securities, while Israeli residents’ foreign assets fell by USD 5 billion. Negative net external debt also declined, and gross external debt to gross domestic product edged up to about 27 percent.