Palestine Economic Update
Palestine Economic Update - February 2026
author: Palestine Economic Policy Research Institute - MAS
year: 2026
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, while 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.