Palestine Current Account

Palestine’s current account deficit widened to $963 million in Q1 2025 from $836 million in the same period of the prior year, marking the biggest gap since Q4 2023. The increase was primarily driven by the slowdown in income surplus growth, which eased to $253 million from $289 million in Q1 2024. Additionally, the goods deficit deepened to $1,340 million from $1,124 million, while the services deficit rose to $263 million from $154 million. On the other hand, current transfer surplus grew to $387 million from $319 million.

Palestine’s current account deficit shrank to $480 million in Q4 2024 from $1,105 million in the same period last year, according to preliminary estimates. The improvement was driven by an increase in the income surplus, which rose to $289 million from $83 million in Q4 2023, and a 14% rise in the current transfer surplus to $516 million from $316 million. At the same time, the goods deficit narrowed to $1,075 million from $1,306 million, while the services deficit widened to $210 million from $198 million.

Palestine’s current account deficit widened to $870 million in Q3 2024, more than doubling from $316 million in the same period last year. The sharp increase was primarily driven by a steep decline in the income surplus, which fell to $275 million from $1,327 million in Q3 2023. Additionally, the current transfer surplus narrowed by 21% to $451 million from $571 million, with non-governmental transfers from abroad plunging 52%, largely due to the ongoing Israeli aggression in Gaza and the West Bank, severely impacting regional financial and economic activities. On the other hand, deficits in goods and services improved, with goods shrinking to $-1,333 million from $-1,848 million and services narrowing to $-263 million from $-366 million.