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. |