Palestine's economy shrank 1.0% year-on-year in the second quarter of 2026, following a 4.8% contraction in the previous period. PCBS attributed the contraction to the repercussions of the Israeli aggression, while the West Bank economy contracted 4%. Most major activities recorded declines, led by agriculture, forestry and fishing (-15%), financial and insurance activities (-13%), construction (-6%), and mining, manufacturing, electricity and water (-3%). On the expenditure side, government spending dropped 7.8%, while household spending and gross fixed capital formation increased 7.0% and 1.3%, respectively. On the trade side, exports increased 18.2%, while imports rose 16.3%. On a quarterly basis, the economy expanded 1.9%, rebounding from an 8.1% contraction in the prior period. source: Palestinian Central Bureau of Statistics

The Gross Domestic Product (GDP) in Palestine contracted 1 percent in the second quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Palestine averaged 2.57 percent from 2001 until 2026, 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 October of 2026.

The Gross Domestic Product (GDP) in Palestine contracted 1 percent in the second quarter of 2026 over the same quarter of the previous year. GDP Annual Growth Rate in Palestine is expected to be -6.00 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
2026-06-30 08:00 AM
GDP Growth Rate YoY
Q1 -4.8% 3% 1.3%
2026-09-30 08:00 AM
GDP Growth Rate YoY
Q2 -1% -4.8% -5.0%
2026-12-30 08:00 AM
GDP Growth Rate YoY
Q3 -1% -6.0%


Related Last Previous Unit Reference
GDP Growth Rate YoY -1.00 -4.80 percent Jun 2026
GDP Constant Prices 3012.10 2955.90 USD Million Jun 2026
GDP from Agriculture 135.80 146.80 USD Million Jun 2026
GDP from Construction 129.60 96.70 USD Million Jun 2026
GDP from Manufacturing 454.20 428.00 USD Million Jun 2026
GDP from Mining 15.90 15.20 USD Million Jun 2026
GDP from Public Administration 230.20 215.10 USD Million Jun 2026
GDP from Services 687.70 654.60 USD Million Jun 2026
GDP from Transport 20.40 19.00 USD Million Jun 2026
GDP from Utilities 11.60 12.90 USD Million Jun 2026
Gross Fixed Capital Formation 854.20 793.90 USD million Jun 2026


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
-1.00 -4.80 26.00 -29.00 2001 - 2026 percent Quarterly

News Stream
Palestine Economy Contracts 1% in Q2
Palestine's economy shrank 1.0% year-on-year in the second quarter of 2026, following a 4.8% contraction in the previous period. PCBS attributed the contraction to the repercussions of the Israeli aggression, while the West Bank economy contracted 4%. Most major activities recorded declines, led by agriculture, forestry and fishing (-15%), financial and insurance activities (-13%), construction (-6%), and mining, manufacturing, electricity and water (-3%). On the expenditure side, government spending dropped 7.8%, while household spending and gross fixed capital formation increased 7.0% and 1.3%, respectively. On the trade side, exports increased 18.2%, while imports rose 16.3%. On a quarterly basis, the economy expanded 1.9%, rebounding from an 8.1% contraction in the prior period.
2026-09-30
Palestine Economy Contracts in Q1
Palestine's economy contracted 4.8% year-on-year in the first quarter of 2026, following a 3.0% expansion in the previous period. It marked the first annual contraction since Q3 2024, as final consumption fell 5.7%, reflecting declines in household spending (-2.1%), government consumption (-27.8%), and NPISH consumption (-13.0%). Gross capital formation also decreased 1.6%, with gross fixed capital formation slipping 1.3%. Meanwhile, exports increased 7.2%, driven by a 9.0% rise in goods exports despite a 17.2% decline in services exports, while imports rose just 1.3%, leading to a smaller net export deficit and making a positive contribution to GDP. On a quarterly basis, the economy contracted 8%, reflecting the continued impact of the Israeli aggression, while the West Bank economy also shrank by 8% over the period.
2026-06-30
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