The Palestine economy contracted 0.5 percent year-on-year in the third quarter of 2018, after a 1.3 percent fall in the previous period. It was the second straight contraction in economy, as while private consumption went down (-0.8 percent from 1.2 percent in Q2). In addition, net exports contributed negatively to growth, as export rose by 7.7 percent (from 4.5 percent in Q2) while imports increased at a faster 7.9 (from 4.8 in Q2). On the other hand, fixed investment increased faster (5.1 percent from 3 percent) and government spending continued rebounded (8.5 percent from -8.1 percent in Q2). On a quarterly basis, the GDP expanded 4 percent, following a 0.8 percent contraction in the second quarter. GDP Annual Growth Rate in Palestine averaged 3.94 percent from 2001 until 2018, reaching an all time high of 26.03 percent in the third quarter of 2003 and a record low of -21.59 percent in the fourth quarter of 2006.
GDP Annual Growth Rate in Palestine is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Palestine to stand at 1.80 in 12 months time. In the long-term, the Palestine GDP Annual Growth Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.