Palestine Economic Update - January 2025

author: Palestine Economic Policy Research Institute - MAS
year: 2025

 

Key Messages :

  • The Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA) have provided preliminary estimates highlighting the war’s catastrophic impact on production, consumption, investment, and employment in 2024. 
  • The economic outlook for 2025 remains uncertain, and projections are fragile. While the ceasefire in Gaza offers a glimmer of hope, recovery hinges on sustaining the agreement and implementing a swift and effective reconstruction plan. However, ongoing Israeli military operations in the West Bank exacerbate devastation and uncertainty, isolating cities and villages and compounding the daily suffering of Palestinians. 
  • A newly introduced Palestinian VAT law aims to reshape the economic landscape by supporting sustainable development. The law seeks to empower MSMEs, promote tax justice, combat tax evasion, and enhance tax  collection efficiency. 
  • Since the onset of the war on Gaza, the tourism sector has been particularly hardhit, with occupancy rates plunging by 84%, a 40% decline in value-added, and losses totaling USD326 million.

 

This bulletin is published with support of Palestine For Development

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Palestine Economic Update - January 2025