FX.co ★ Palestine Current Account Widens in Q1

In the first quarter of 2025, Palestine experienced an expansion in its current account deficit, which reached $963 million, up from $836 million during the same period the previous year. This represents the most significant deficit since the fourth quarter of 2023. The key factor contributing to this widening gap was a slowdown in the growth of the income surplus, which decreased to $253 million from $289 million in the corresponding period of 2024. Furthermore, there was a notable increase in the goods deficit, which expanded to $1,340 million from $1,124 million, alongside a rise in the services deficit to $263 million from $154 million. Conversely, the current transfer surplus saw an improvement, growing to $387 million from $319 million.