Palestine Economic Update
Palestine Economic Update - June 2026
author: Palestine Economic Policy Research Institute - MAS
year: 2026
Key Messages :
- The Palestinian National Authority (PA) launched the pilot phase of the Yabus application to facilitate public sector employees’ coping with severe cash shortages and accumulated salary arrears, while the fiscal crisis continues to undermine the provision of basic public services, most visibly in the strained West Bank health sector.
- Reports that Israel Discount Bank may sever correspondent banking ties with Palestinian banks have heightened risks to the Palestinian financial system, threatening the continuity of basic financial operations.
- Several donor and government-backed development projects were launched across the West Bank to support wastewater reuse, renewable energy, MSMEs, infrastructure rehabilitation and health services, with a shared focus on improving basic services and strengthening local resilience.