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Press Release: Palestine Economic Update – February 2026 is out now
07 mar 2026
The Palestine Economic Update for February 2026 has been released, providing a current overview of key economic trends, fiscal developments, and emerging risks facing the Palestinian economy. The Update highlights recent changes in economic activity, public finance challenges, labor market dynamics, and broader macroeconomic indicators. It offers policymakers, researchers, and partners timely insights to inform decision-making.
Feb Issue Key Messages:
- After a very difficult year of acute fiscal strain driven by Israel’s suspension and deductions of clearance revenues, 2026 risks an even deeper and potentially existential crisis if the withholding of these transfers continues, as warned by the Minister of Finance.
- Despite a partial reopening of Rafah under the fragile ceasefire, humanitarian access to Gaza remains tightly restricted and insufficient. At the same time, a newly formed Palestinian transitional administration has yet to assume effective governance on the ground.
- Correspondent banking remains structurally indispensable yet persistently uncertain, as its continuation hinges on Israeli indemnity renewals beyond Palestinian control. After two bi-weekly extensions in February, the current arrangement expires on 14 March 2026, with no clarity on further renewal.