Palestine Economic Update
Palestine Economic Update - June 2025
author: Palestine Economic Policy Research Institute - MAS
year: 2025
Key Messages :
- The Northern West Bank economy is collapsing due to Israeli military raids and settler attacks, with over half of surveyed businesses shutting down at some point in Q1 2025 and 18.7% of reporting direct physical damage. Revenues, employment, and production have plummeted.
- Israel’s banking restrictions are trapping Palestinians in a cash crisis, leaving them unable to deposit shekels or meet financial obligations.
- Health reform and hospital projects are advancing, but remain underfunded and overshadowed by the decimation of Gaza’s health system.
- As new lending and financial support programs continue to roll out, funding remains
- modest and insufficient to meet the scale of the economic and humanitarian crisis.