Palestine's current account deficit narrowed to USD 373.3 million in the second quarter of 2018 from USD 467.4 million in the same period a year earlier, a preliminary result showed. The current transfer surplus increased to USD 450.2 million from USD 382.8 million in Q2 2017 while the income surplus went up to USD 603.7 million from USD 418.7 million in the same period of 2017. Meantime, the goods account deficit increased to USD 1,178.9 million from USD 1,055.9 million in Q2 2017 while the services account gap rose to USD 248.3 million from USD 213 million. Current Account in Palestine averaged -537.46 USD Million from 2000 until 2016, reaching an all time high of 764.40 USD Million in the fourth quarter of 2008 and a record low of -1516.00 USD Million in the fourth quarter of 2004.
Current Account in Palestine is expected to be -395.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Palestine to stand at -420.00 in 12 months time. In the long-term, the Palestine Current Account is projected to trend around -450.00 USD Million in 2020, according to our econometric models.