Palestinian Central Bureau of Statistics and Palestinian Monetary Authority Announce Preliminary Results of the Balance of Payments for Q1 2026

SadaNews - The Palestinian Central Bureau of Statistics and the Palestinian Monetary Authority have issued the preliminary results of the Palestinian balance of payments for the first quarter of 2026, as part of the joint periodic release of the Palestinian balance of payments, representing a continuation of the joint efforts made by the two institutions. It should be noted that the data does not include that part of the Jerusalem Governorate that was forcibly annexed by the Israeli occupation following its occupation of the West Bank in 1967.

The preliminary data for the balance of payments in the first quarter of 2026 indicates a continued deficit in the current account (goods, services, income, and current transfers), amounting to approximately 440 million USD, an increase of 31% compared to the previous quarter. The trade balance deficit stood at 1.523 million USD, while the services balance deficit reached 81 million USD.

The data indicates a decrease in net income account during the first quarter of 2026 by 16% compared to the previous quarter, reaching a value of 271 million USD, as the compensations for Palestinians working in Israel rose by 14% compared to the previous quarter, reaching 196 million USD. Meanwhile, income from foreign investments decreased by 36%, reaching 89 million USD, primarily due to the interests received on Palestinian deposits in foreign banks.

Increase in net current transfers from abroad during Q1 2026 by approximately 21% compared to the previous quarter

The data indicates an increase in net current transfers by 21% to reach 893 million USD compared to the previous quarter, with current transfers from abroad to the government sector stabilizing at 462 million USD. Meanwhile, transfers to other sectors (non-government) increased by 46% compared to the previous quarter. It is notable that current transfers to the government sector accounted for 49% of total current transfers from abroad, while transfers to other sectors constituted 51%. It is worth mentioning that transfers from donor countries represent about 85% of total current transfers from abroad.

The preliminary results of the balance of payments also indicated a surplus in the capital and financial account amounting to 788 million USD, resulting from the surplus recorded in the financial account which amounted to 704 million USD. In contrast, the reserve assets held by the Palestinian Monetary Authority recorded an increase of 29 million USD during this quarter, compared to an increase of 494 million USD in the previous quarter.

It is important to note that the balance of payments is considered the tool that determines the state's economic position relative to the outside world and the size of foreign debt, assisting researchers and decision-makers in deriving appropriate economic policies and development plans to achieve external balance, ensuring the state achieves stability and economic growth. It should be noted that the preparation of the Palestinian balance of payments data relied on the latest international recommendations, taking into account the specificity of the Palestinian situation.