Palestine posted a current account deficit of USD 337 million in the fourth quarter of 2025, an improvement from the USD 480 million deficit recorded in the same period a year earlier.
The surplus on the income account widened to USD 323 million from USD 289 million, driven by higher compensation for Palestinian workers employed in Israel and increased returns on foreign investments, particularly interest earned on Palestinian deposits held in overseas banks.
The surplus in net current transfers from abroad also expanded, reaching USD 740 million compared with USD 516 million a year earlier. This increase mainly reflected a decline in transfers to the government and other domestic sectors.
By contrast, the goods account deficit deepened to USD 1,173 million from USD 1,075 million, while the services balance shortfall widened to USD 227 million from USD 210 million over the same period.
