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29.06.202608:06:34UTC+00Palestine Current Account Deficit Narrows in Q1

Palestine’s current account deficit narrowed sharply to USD 440 million in the first quarter of 2026, down from USD 963 million in the same period a year earlier. The services account deficit fell markedly to USD 81 million from USD 263 million.

By contrast, the goods account deficit widened by USD 183 million to USD 1,523 million, compared with USD 1,340 million in the first quarter of the previous year. At the same time, the surplus in net current transfers from abroad rose substantially to USD 893 million, up from USD 387 million a year earlier.

The net income surplus also increased, reaching USD 271 million compared with USD 253 million in the corresponding quarter of the prior year. This improvement was driven largely by higher compensation for Palestinian workers in Israel, partially offset by a decline in foreign investment income, particularly interest earned on Palestinian deposits held with foreign banks.

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