FX.co ★ Palestine GDP Contraction Cools in Q4

In the fourth quarter of 2024, Palestine's economy experienced a 1% year-on-year contraction, showing a marked improvement compared to the dramatic 31% decline observed in the preceding quarter. This period represents the fifth consecutive quarter of economic contraction, although it was the most modest decline in this sequence. The downturn was primarily attributed to a significant 27% decrease in output from the Gaza Strip, largely due to the ongoing Israeli occupation and military actions. Nevertheless, this decline was somewhat mitigated by a notable recovery in various sectors. Positive growth was observed in agriculture, forestry, and fishing with a 15.5% increase, as well as in mining, manufacturing, electricity, and water, which rose by 3.6%. Additionally, the wholesale and retail trade, transportation and storage, and public administration and defense sectors experienced rebounds of 3.7%, 0.5%, and 2.7% respectively. Conversely, there were contractions in the construction sector (-14.5%), financial and insurance activities (-5.3%), information and communication (-3.2%), and services (-11.0%).