Palestine Economic Update
Palestine Economic Update May 2026
author: Palestine Economic Policy Research Institute - MAS
year: 2026
Key Messages :
- The AHLC donors meeting in April highlighted the stalled implementation of the Gaza ceasefire framework, weak progress on recovery and reconstruction, and a worsening humanitarian situation, with recent assessments finding that the US-led Gaza peace plan risks failure.
- The Palestinian economy throughout the occupied territory continues to struggle under a severe fiscal and economic crisis, driven by withheld clearance revenues, banking constraints, high unemployment, and collapsing economic activity, leaving the PA with limited capacity to sustain basic services, let alone support Gaza recovery or address intensifying vulnerabilities.
- The latest international estimates put total Gaza damage and losses at $57.9bn and recovery needs at $71.4bn, underscoring the scale of destruction and the need for sustained financing beyond immediate humanitarian relief, which itself remains underdelivered.
- Violence against women in Palestine has been estimated to cost ILS 297.5m annually, without accounting for war-related impacts that have since intensified abuse, violence, and economic hardship