FX.co ★ Palestine Current Account Deficit Highest Since Q1 2025

Palestine’s current account deficit widened to USD 739 million in the second quarter of 2026, up from USD 665 million in the same period a year earlier. This was the largest shortfall since Q1 2025, primarily reflecting a sharp deterioration in the goods account, whose deficit expanded to USD 1,648 million from USD 1,075 million.

By contrast, the services account deficit narrowed markedly, falling to USD 85 million from USD 210 million. In addition, net current transfers from abroad increased to USD 717 million, compared with USD 425 million a year earlier.

The net income surplus also strengthened, rising to USD 277 million from USD 195 million. This improvement was mainly supported by higher compensation for Palestinian workers in Israel (USD 209 million versus USD 140 million) and greater foreign investment income, largely from interest on Palestinian deposits held in foreign banks (USD 101 million versus USD 93 million).