The economy of Palestine grew by 3% year-on-year in the fourth quarter of 2025, accelerating from a 1.4% growth in the previous period. The expansion was mainly driven by gains in services (11%), information and communication (12%), and industry (6%). In contrast, several sectors remained under pressure, including transportation and storage (-11%), construction (-10%), financial and insurance (-5%), and agriculture, forestry, and fishing (-4%). GDP for the quarter stood at USD 3,039 million in the West Bank and USD 176 million in the Gaza Strip. Meanwhile, GDP per capita rose by 1% year-on-year to USD 596. For the full year, the Palestinian economy remained in recession, contracting by 20% in 2025 compared to 2023, despite recording a 4% increase from 2024 levels. source: Palestinian Central Bureau of Statistics

The Gross Domestic Product (GDP) in Palestine expanded 3 percent in the fourth quarter of 2025 over the same quarter of the previous year. GDP Annual Growth Rate in Palestine averaged 2.68 percent from 2001 until 2025, reaching an all time high of 26.00 percent in the third quarter of 2003 and a record low of -29.00 percent in the first quarter of 2024. This page provides the latest reported value for - Palestine GDP Annual Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Palestine GDP Annual Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on April of 2026.

The Gross Domestic Product (GDP) in Palestine expanded 3 percent in the fourth quarter of 2025 over the same quarter of the previous year. GDP Annual Growth Rate in Palestine is expected to be 1.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Palestine GDP Annual Growth Rate is projected to trend around 1.00 percent in 2027 and 3.00 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-01-14 02:50 AM
GDP Growth Rate YoY
Q3 1.4% 3.2% 5%
2026-03-29 12:30 PM
GDP Growth Rate YoY
Q4 3% 1.4% 1.6%
2026-06-30 08:00 AM
GDP Growth Rate YoY
Q1 3% 1.3%


Related Last Previous Unit Reference
GDP Growth Rate YoY 3.00 1.40 percent Dec 2025
GDP Constant Prices 3215.10 3101.40 USD Million Dec 2025
GDP from Agriculture 151.80 156.00 USD Million Dec 2025
GDP from Construction 117.00 124.40 USD Million Dec 2025
GDP from Manufacturing 490.50 524.70 USD Million Dec 2025
GDP from Mining 16.10 16.00 USD Million Dec 2025
GDP from Public Administration 256.60 222.10 USD Million Dec 2025
GDP from Services 681.70 609.90 USD Million Dec 2025
GDP from Transport 17.90 20.90 USD Million Dec 2025
GDP from Utilities 11.90 13.40 USD Million Dec 2025
Gross Fixed Capital Formation 874.40 876.80 USD million Dec 2025


Palestine GDP Annual Growth Rate
The Palestinian territories (West Bank and Gaza) have been occupied by Israel since the Six-Day war in 1967. As such, Palestinian economy is dependent on Israel as it controls the movement of goods and labour and retains customs revenues. As a result, production capacity and access to natural resources has been significantly reduced and services are by far the most important sector of the economy accounting for nearly 83 percent of GDP. Palestine remains heavily dependent on foreign aid to support the government’s budget and fund infrastructure development.
Actual Previous Highest Lowest Dates Unit Frequency
3.00 1.40 26.00 -29.00 2001 - 2025 percent Quarterly

News Stream
Palestine GDP Expands 3% in Q4
The economy of Palestine grew by 3% year-on-year in the fourth quarter of 2025, accelerating from a 1.4% growth in the previous period. The expansion was mainly driven by gains in services (11%), information and communication (12%), and industry (6%). In contrast, several sectors remained under pressure, including transportation and storage (-11%), construction (-10%), financial and insurance (-5%), and agriculture, forestry, and fishing (-4%). GDP for the quarter stood at USD 3,039 million in the West Bank and USD 176 million in the Gaza Strip. Meanwhile, GDP per capita rose by 1% year-on-year to USD 596. For the full year, the Palestinian economy remained in recession, contracting by 20% in 2025 compared to 2023, despite recording a 4% increase from 2024 levels.
2026-03-30
Palestine GDP Grows 1.4% in Q3
The economy of Palestine expanded by 1.4% year-on-year in the third quarter of 2025, slowing from a 3.2% expansion in the previous three-month period. This marked the fourth consecutive quarter of economic growth, albeit the weakest in the sequence, driven by contractions recorded in wholesale and retail trade (-1.8%), financial and insurance (-2.1%), services (-1.6%), public administration and defense (-4.1%), and transportation and storage (-2.8%). Meanwhile, output expanded in agriculture, forestry, and fishing (7.6%), mining, manufacturing, electricity, and water (15.8%), construction (4.1%), and information and communication (8.2%). On a quarterly basis, the GDP advanced by 1.9% in Q3 2025, following a 1.9% decline in the previous three-month period.
2026-01-14
Palestine Economy Grows 4.7% YoY in Q2
The economy of Palestine expanded by 4.7% year-on-year in the second quarter of 2025, slowing from a 9.1% expansion in the previous three-month period, marking the second consecutive quarter of economic growth. The slowdown was primarily driven by the contraction recorded in agriculture, forestry and fishing (-0.8%), mining and quarrying (-4.2%), and transportation and storage (-3.4%). Meanwhile, output expanded in construction (21.4%), wholesale and retail trade (5.9%), financial and insurance (13.6%), information and communication (6.6%), services (6.4%), and public administration and defense (1.8%). On a quarterly basis, the GDP shrank by 0.5%, following 0.9% decline in the previous three-month period.
2025-09-29