The Palestinian economy is teetering on the edge of systemic failure, battered by Israel’s ongoing military campaign in Gaza, crippling restrictions in the West Bank, and a dramatic evaporation of financial resources
A stark assessment in the 2025 Palestinian Economic Monitor, a joint publication of the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA), confirms the economy remains trapped in a deep, structural recession.
RELATED: Israeli Attacks Leave 1.5 Million People Homeless in Gaza
The report paints a picture of near-total devastation in Gaza and severe contraction in the West Bank, with overall economic activity frozen far below pre-2023 levels.
A joint report by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA), published in the Palestinian Economic Monitor for 2025, found that the Palestinian economy remained mired in deep recession throughout the year 2025.
Overall GDP… pic.twitter.com/JWtYCwyIRN
— Quds News Network (@QudsNen) December 26, 2025
Palestinian Economy Minister Mohammed al-Amour has accused Tel Aviv’s regime of withholding roughly $4.5 billion in Palestinian tax revenues, condemning the move as “collective punishment” that has crippled the Palestinian Authority’s basic operations, which amount to “its most difficult period” since the PA establishment in 1994.
Economic expert Haitham Daraghmeh described Palestinian debt as “accumulated debt that increases monthly”, owed to banks, suppliers, contractors, and the telecommunications and health sectors.
According to al-Amour, the debt burden piles up on multiple fronts: $4.5 billion to the IMF, $3.4 billion to local banks, and $2.5 billion in back pay for government employees. A further $1.6 billion is owed to the private sector, with an additional $2.6 billion in external and other financial obligations.
In 2025, Palestine’s economy suffered a catastrophic collapse, with Gaza bearing the brunt of the devastation. According to the Palestinian Central Bureau of Statistics (PCBS), Gaza’s GDP plummeted by 84 percent compared to 2023, and its share of national trade fell below 4… pic.twitter.com/gZi8QygI4h
— Quds News Network (@QudsNen) December 23, 2025
Israel’s ongoing genocide in Gaza
The Palestinian Ministry of Health in the Gaza Strip reported a daily toll of three killed and sixteen wounded as a result of the Zionist genocidal campaign, noting that many victims remain unreachable under rubble. This brings the death toll to 410 since the ceasefire came into effect on October 11, 2025.
The office also noted that the overall number of martyrs from the Israeli offensive against the Gaza Strip since October 7, 2023, has risen to 70,945 , with 171,211 injured, most of them women and children.
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