Official data showed, today, Monday, the continued deficit in the current account of the Palestinian balance of payments, reaching 750 million US dollars during the third quarter of 2025, recording a decrease of 38% compared to the previous quarter.
Preliminary data issued by the Palestinian Central Bureau of Statistics and the Monetary Authority reported that the merchandise trade balance deficit amounted to $1.105 billion, while the services balance recorded a deficit of $214 million.
On the other hand, the net income account increased by 57% to reach $307 million, driven by an increase in compensation for Palestinians working for the Zionist entity by 25% to reach $159 million, and an increase in investment income received from abroad by 75% to reach $163 million.
This deficit comes in light of the chronic financial crisis that the Palestinian economy is suffering from, which has been exacerbated by the decline in foreign aid and the Zionist entity’s withholding of clearing funds.
And the increase in current spending, especially in the salary bill and social transfers. Clearing funds constitute,
These are taxes imposed on imported goods and collected by the Zionist entity on behalf of the Palestinian Authority, the main source of public revenues.
However, the repeated cuts led to a severe liquidity imbalance and hampered the government’s ability to meet its financial obligations.
Restrictions on movement and trade, settlement expansion, and escalation of military operations in the West Bank also contributed to weakening economic activity, rising unemployment and poverty rates, and declining investments.
Since the outbreak of the war on the Gaza Strip in October 2023, pressures on Palestinian public finances have escalated, as a result of declining revenues, rising emergency expenditures, and the continuing political blockage, which has deepened the financial deficit and increased levels of internal borrowing.
Economic and financial institutions warned that the continuation of these conditions threatens the financial stability of the Palestinian Authority and restricts its ability to implement its economic policies.
Unless external financial flows resume and restrictions imposed on the Palestinian economy are lifted.
#million #Palestinian #current #account #deficit #quarter
#oussama_boulegheb #elhiwardz #alakhibariat.xyz #elhiwar #elhiwar-en
