The Palestinian Central Bureau of Statistics (PCBS) and

The Palestine Monetary Authority (PMA) 

The increase in imports combined with a decline in current transfers during the third quarter of 2025, led to an increase in the current account deficit, reaching USD 750 million.

Ramallah - (Palestinian Central Bureau of Statistics – 29/12/2025):

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 third quarter of 2025 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 third quarter of 2025 indicate a continued deficit in the current account (goods, services, income, and current transfers), amounting to USD 750 million with an increase of 13% compared to the previous quarter. The trade balance deficit for goods reached USD 1,105 million, in addition to a services balance deficit of USD 214 million.

The data indicates an increase in the net income account during the third quarter of 2025 by 57% compared to the previous quarter, reaching USD 307 million. Whereas, compensation for Palestinian workers in Israel increase by 25% compared to the previous quarter reached USD 159 million. Meanwhile, foreign investment income increased by 75%, reaching USD 163 million, primarily resulting from interest earned on Palestinian deposits in foreign banks. 

A decrease of 38% was recorded in the net current transfers from abroad during the third quarter of 2025 compared to the previous quarter.

The data indicates a decrease of 38% in the net current transfers, reaching USD 262 million compared to the previous quarter. Where the value of current transfers from abroad to government sector reaching USD 63 million, while it increased to other sectors (non-governmental) by 30% compared to the previous quarter. It is noted that current transfers to the government sector accounted for only 20% of the total current transfers from abroad, while transfers to other sectors constituted 80%. It is worth mentioning that donor transfers represented about 64% of the total current transfers from abroad. 

The preliminary results showed a surplus value for the Capital and Financial Account amounted to USD 292 million, mainly caused by the surplus in the Financial Account, which amounted to USD 169 million. There was a decrease in the reserve assets at PMA amounted to USD 93 million, compared to a decrease of USD 32 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. 

Note: Due to the uncertainty during this quarter, data may be revised in future quarters.

Issued on: 29/12/2025