Palestine Economic Update
Palestine Economic Update - March 2025
author: Palestine Economic Policy Research Institute - MAS
year: 2025
Key Messages :
- The World Bank, UN, and EU jointly estimate Gaza’s recovery and reconstruction needs at $53.2Bn, with $19.9Bn required in the short term. However, actual costs are likely much higher as Israel’s assault on Gaza renews and widens.
- The situation in the West Bank is rapidly deteriorating. Since January, Israel has intensified military operations in the northern West Bank, destroying hundreds of homes and displacing close to 50,000 people, mainly from refugee camps.
- The PA ended 2024 with a net fiscal deficit of ILS 4.8Bn and projects a more profound crisis in 2025, with a deficit of ILS 6.9Bn. Since 2019, Israel has deducted a total of ILS 7Bn in clearance revenues, including ILS 4Bn since the war began.
- The PA was unable by the end of March to secure even partial public sector salaries for the preceding month.
- The scale of the ongoing humanitarian and economic crisis in Palestine is overshadowing new projects and investments aimed at economic recovery and job creation.