Statistics: West Bank Economy Contracts by 4% and GDP Declines

Ramallah - Ofoq News - The Palestinian Statistics announced today the preliminary results of the quarterly national accounts for the second quarter of 2026, indicating a decrease in the gross domestic product (GDP) by 1% compared to the same period in 2025, due to the ongoing economic repercussions of the Israeli occupation's aggression.

The initial estimates clarified that this decline was primarily driven by a contraction in the economy of the West Bank by 4%, where the GDP value reached 2,860 million US dollars, compared to 152 million US dollars in the Gaza Strip during the second quarter of the current year.

The performance of the main economic sectors was affected, with the decline in value added impacting most vital sectors in Palestine, with the following sectors leading in the rates of decline:

Agriculture, forestry, and fishing sector: decreased by 15%.

Financial activities and insurance activities: decreased by 13%.

The construction sector: decreased by 6%.

The mining, manufacturing, water, and electricity sector: recorded a decline of 3%.

Indicators of per capita GDP reflected these developments on the living standards of individuals, as per capita GDP in Palestine at constant prices decreased by 3% compared to the second quarter of 2025, reaching 552 US dollars.

At the regional level, per capita GDP in the West Bank decreased by 6% compared to the same period, while data showed a statistical increase in per capita GDP in the Gaza Strip by 105%, which is primarily due to the decrease in the direct value of the comparison basis in the same period of the previous year due to the conditions of war.