Palestine Economic Update
Palestine Economic Update - October 2026
author: Palestine Economic Policy Research Institute - MAS
year: 2026
Key Insights
- Israel’s continued withholding of tax clearance revenues deepens the PA’s fiscal crisis, forcing spending cuts and delayed salary and other outstanding payments while driving up arrears and undermining public services and livelihoods.
- Intensifying Israeli movement restrictions across the West Bank are increasing transport costs, disrupting access to markets and livelihoods, and weakening any remaining prospects for recovery.
- Hebron’s footwear industry has taken an important step toward accessing international markets through Amazon.
- Discussions on reforming the Labor Law highlight the need to strengthen workers’ rights, improve legal enforcement and social protection, and address challenges facing businesses amid deteriorating conditions.
- Historical performance of PEX indices highlights the substantial contribution of reinvested dividends to long-term investment returns.