Palestine Economic Update
Palestine Economic Update - September 2025
author: Palestine Economic Policy Research Institute - MAS
year: 2025
Key Messages :
- As the Gaza war enters its third year, the PA’s fiscal position has sharply deteriorated, with revenues collapsing under Israeli deductions and withholdings, rising arrears and debt, and growing systemic risk as banks deepen their exposure to government solvency.
- The Ministry of Labour has introduced a broad set of relief, training, employment, and digital initiatives over the past year to ease the crisis in the Palestinian labour market, yet unemployment remains critically high at over 50%.
- Digital payments are expanding rapidly, offering a vital though limited alternative to cash amid severe economic hardship, infrastructure destruction, and Israeli restrictions.