29 Jun

The Preliminary Results of the Palestinian Balance of Payments , First Quarter, 2026

The Palestinian Central Bureau of Statistics (PCBS) and

The Palestine Monetary Authority (PMA)

The Preliminary Results of the Palestinian Balance of Payments,

 First Quarter,2026 

 

"Compared to the previous quarter, the current account deficit in Palestine increased in the first quarter of 2026 to reach USD 440 million, primarily due to an increase in the deficit of the goods trade balance."

Ramallah - (Palestinian Central Bureau of Statistics – 29/06/2026):

The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) announced the preliminary results of the Palestinian Balance of Payments (BoP) for the first quarter of 2026 under the joint issuance cycle. It should be noted that the data excludes those parts of Jerusalem, which were annexed by Israeli occupation in 1967.

Preliminary data for the balance of payments in the first quarter of 2026 indicate a continued deficit in the current account (goods, services, income, and current transfers), amounting to USD 440 million with an increase of 31% compared to the previous quarter. The trade balance deficit for goods reached USD 1,523 million, in addition to a services balance deficit of USD 81 million.

The data indicates a decrease in the net income account during the first quarter of 2026 by 16% compared to the previous quarter, reaching USD 271 million. Whereas, compensation for Palestinian workers in Israel increase by 14% compared to the previous quarter reached USD 196 million. Meanwhile, foreign investment income decrease by 36%, reaching USD 89 million, primarily resulting from interest earned on Palestinian deposits in foreign banks.

Net Current Transfers from Abroad Increased by About 21% in the First Quarter of 2026 Compared with the Previous Quarter

The data indicates an increase of 21% in the net current transfers, reaching USD 893 million compared to the previous quarter. Where the value of current transfers from abroad to government sector reaching USD 462 million, while it increased to other sectors (non-governmental) by 46% compared to the previous quarter. It is noted that current transfers to the government sector accounted for 49% of the total current transfers from abroad, while transfers to other sectors constituted 51%. It is worth mentioning that donor transfers represented about 85% of the total current transfers from abroad.

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 788 million, mainly caused by the surplus in the Financial Account, which amounted to USD 704 million. There was an increase in the reserve assets at PMA amounted to USD 29 million, compared to an increase of USD 494 million in the previous quarter.

It is worth mentioning that the Balance of Payments (Bop) is used to determine the economic position of a country compared to other countries worldwide, and to calculate the size of its external debt. This data enables researchers and decision makers to devise informed economic policies and development plans to improve their external balance to guarantee the stability of the state and sustain the economic growth. BoP data was prepared according to the latest international recommendations taking into account the specificity of the Palestinian situation.

Issued on: 29/06/2026

Table 1: Balance of Payments in Palestine* for the fourth quarter of 2025 and the first quarter of 2026

 

(Value in million USD)

 

 

Indicator

Q4-2025

Q1-2026

Current account (net)

-337

-440

  Goods (net)

-1173

-1523

    Exports (fob)

881

1070

    Imports (fob)

2054

2593

  Services (net)

-227

-81

    Exports

188

70

    Imports

415

151

  Income (net)

323

271

    Receipts

325

298

        Compensation of employees

185

209

            Of which from Israel

172

196

        Investment income

140

89

    Payments

2

27

  Current transfers (net)

740

893

    Inflows

795

948

       To the government sector

462

462

           of which from Donors transfers

459

459

      To the other sectors

333

486

           of which from Donors transfers

200

350

    Outflows

55

55

Capital and financial account (net)

-62

788

   Capital account (net)

119

84

      Capital transfers (net)

119

84

          Inflows

119

84

             To the government sector

49

23

                of which from Donors transfers

49

23

             To the other sectors

70

61

          Outflows

0

0

Acquisition / disposal of non-Produced, non-financial assets non-financial assets (net)

0

0

 

 

Table 1 (Cont.): Balance of Payments in Palestine* for the fourth quarter of 2025 and the first quarter of 2026

 

(Value in million USD)

 

 

Indicator

Q4-2025

Q1-2026

   Financial account (net)**

-181

704

     Foreign Direct investment (net)

111

50

         Change in investment abroad (net)

-3

0

         Change in investment in Palestine (net)

114

50

     Foreign  Portfolio investment (net)

444

74

         Change in Assets (net)

355

64

         Change in Liabilities (net)

89

10

     Foreign Other investment (net)

-242

609

         Change in Assets (net)

-197

609

            Of which Currency and deposits***

288

1172

         Change in Liabilities (net)

-45

0

            Of which Loans nonresidents

-4

0

            Of which Currency and deposits****

-41

7

Net errors and omissions

399

-348

Overall balance

494

29

Financing

0

0

Exceptional financing

0

0

Change in Reserve assets (- = Increase/+= decrease)

-494

29-

 

*The data excludes those part of Jerusalem which were annexed by Israeli occupation in 1967.

**Include reserve assets.

***Currency and deposits: Including the cash of foreign currency in the banks and the deposits

of the Palestinian institutions deposited abroad.

****Currency and deposits: Includes the deposits of non-residents deposited in Local banks.