The Bank of Israel published Israel’s International Investment Position (IIP) for the second quarter of 2025, showing a USD 7 billion increase in the surplus of external assets over liabilities to around USD 244 billion by quarter-end. Outstanding liabilities to abroad rose by about USD 54.6 billion (around 10 percent) to roughly USD 609 billion, reflecting continued net investment by nonresidents, mainly through direct investment (primarily undistributed profits) and other investments, alongside higher prices of Israeli securities held by nonresidents. Israeli residents’ external assets increased by about USD 61.5 billion (around 7.8 percent) to about USD 852 billion, driven by net investment abroad and higher prices of foreign securities held by residents. The surplus in debt instruments alone (negative net external debt) increased by about USD 16 billion (5.3 percent) to approximately USD 312 billion, while the gross external debt-to-GDP ratio rose by about 1.4 percentage points to around 28.7 percent at end-June.