FX.co ★ Palestine’s Trade Deficit Largest in 5-Months

In January 2025, Palestine's trade deficit expanded significantly to USD 475.4 million, compared to USD 354.9 million in the same month a year earlier, marking the largest deficit since August 2024. This increase was primarily due to imports rising more sharply than exports. Imports soared by 27% year-on-year, reaching USD 616.1 million, fueled by a 14% rise in purchases from Israel, accounting for 56% of total imports, and a substantial 48% increase in imports from other countries. On the other hand, exports grew at a more modest rate of 8%, totaling USD 140.7 million, mainly owing to a 21% boost in sales to Israel, which made up 90% of all exports. Nevertheless, exports to other countries saw a significant decline, plummeting by 45%, a markedly steeper drop than the previous year's 2% decrease.