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Palestine Economic Update - April 2026

author: Palestine Economic Policy Research Institute - MAS

Key Messages :

  • The 2026 emergency budget reflects a Palestinian government in survival mode, as continued Israeli withholding of clearance revenues could widen this year’s net budget deficit to $3.5bn (18.9% of GDP), further adding to an already critical stock of accumulated liabilities that had reached $15.4bn by end-2025 (around 90% of GDP). 
  • The war on Iran and in the region has intensified a severe Palestinian crisis stemming from over two years of relentless Israeli war, deepening humanitarian collapse in Gaza, while further eroding livelihoods in the West Bank, a recipe for distress and prolonged instability. 
  • The new net billing system for solar energy was suspended hours after its launch following widespread backlash over added fees and weak public consultation, despite rapid growth in solar adoption. 
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Palestine Economic Update - April 2026