Palestine Economy Grows 4.7% YoY in Q2

The economy of Palestine expanded by 4.7% year-on-year in the second quarter of 2025, slowing from a 9.1% expansion in the previous three-month period, marking the second consecutive quarter of economic growth. The slowdown was primarily driven by the contraction recorded in agriculture, forestry and fishing (-0.8%), mining and quarrying (-4.2%), and transportation and storage (-3.4%). Meanwhile, output expanded in construction (21.4%), wholesale and retail trade (5.9%), financial and insurance (13.6%), information and communication (6.6%), services (6.4%), and public administration and defense (1.8%). On a quarterly basis, the GDP shrank by 0.5%, following 0.9% decline in the previous three-month period.