Palestine Economic Update
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.