Palestine’s Balance of Trade deficit widened to ILS -500.90M in January 2026, improving from December’s -519.40M but remaining above the 12-month average. Imports rose 2.10% month-over-month to ILS 1.12B while exports increased 1.50% to ILS 619.10M, sustaining the trade gap for the third consecutive month. Currency markets held steady post-release as investors weigh ongoing external funding needs amid persistent structural imbalances. Updated 2/23/26
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Balance Of Trade - PS
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Key Takeaways: Palestine’s trade deficit widened to ILS -500.9M in January 2026 from ILS -519.4M in December 2025. The gap remains above the 12-month average, with imports outpacing exports for the third consecutive month.
Palestine’s Trade Deficit Widens in January: Imports Outpace Exports
Big-Picture Snapshot
Drivers this month
Rising imports of consumer goods: +ILS 18M
Stagnant export growth: +ILS 2M
Energy imports: +ILS 7M
Policy pulse
The January 2026 deficit of ILS -500.9M remains above the Palestinian Monetary Authority’s medium-term target for external balance. The persistent gap underscores ongoing structural trade challenges.
Market lens
Markets showed muted reaction to the latest trade figures. Investors remain cautious, with local equities trading sideways and the shekel holding steady against major currencies. The data reinforced expectations of continued external funding needs.
Foundational Indicators
Drivers this month
Imports: ILS 1.12B (up 2.1% MoM)
Exports: ILS 619.1M (up 1.5% MoM)
Trade deficit: ILS -500.9M (vs. -519.4M in December 2025)
Policy pulse
The deficit narrowed slightly from December’s reading but remains wider than the -475.7M recorded in November 2025. Policymakers continue to monitor the import-export gap as a key macroeconomic risk.
Market lens
Currency markets remained stable post-release. The shekel’s resilience reflects expectations of ongoing donor support and limited immediate policy shifts.
Chart Dynamics
January’s trade deficit printed at ILS -500.9M, compared with December’s -519.4M and a 12-month average of -478.7M. This marks the third consecutive month with a deficit above the annual mean. The gap remains wider than the -475.7M seen in November 2025, and is notably larger than the -388.4M recorded in August 2025. The trend since mid-2025 shows persistent pressure from rising imports, with only brief relief in late summer.
Balance of Trade trend (May 2025–January 2026)
What This Chart Tells Us: Palestine’s trade deficit has remained above its 12-month average for three straight months, reflecting persistent import demand and sluggish export growth. The data highlight structural imbalances and limited progress on narrowing the trade gap.
Forward Outlook
Drivers this month
Import growth: +2.1% MoM
Export growth: +1.5% MoM
Energy prices: stable YoY
Scenario analysis
Bullish: If exports accelerate and imports stabilize, the deficit could narrow toward ILS -475M (20% probability). Base: Continued import pressure keeps the deficit near current levels (65% probability). Bearish: Further import surges or export declines push the gap past ILS -526M (15% probability).
Policy pulse
Authorities are prioritizing export diversification and import substitution, but near-term improvements remain constrained by external conditions.
Closing Thoughts
Market lens
Investors remain cautious on local assets. The persistent trade gap underscores the need for structural reforms and external support to stabilize the current account.
Policy pulse
The January data reinforce the urgency of addressing trade imbalances through targeted policy interventions and enhanced export competitiveness.
Key Markets Reacting to Balance of Trade
Palestine’s trade data ripple through regional markets, with select global equities, forex pairs, and crypto assets showing sensitivity to shifts in the country’s external balance. The following symbols, verified from Sigmanomics, have demonstrated notable correlations with Palestine’s trade trends:
AAPL — Apple’s global supply chain and Middle East exposure make it sensitive to regional trade flows.
EURUSD — The euro-dollar pair often reflects shifts in emerging market trade balances, including Palestine’s.
BTCUSD — Bitcoin’s price can react to macroeconomic uncertainty and capital flows linked to trade deficits.
Year
PS Balance of Trade (ILS M)
BTCUSD Direction
2020
-410.2
Up
2022
-445.8
Down
2024
-470.5
Up
2026 (Jan)
-500.9
Flat
Since 2020, periods of widening trade deficits in Palestine have coincided with increased volatility in BTCUSD, underscoring the interplay between macroeconomic imbalances and digital asset flows.
FAQ
What is the latest Balance of Trade figure for Palestine?
The January 2026 Balance of Trade for Palestine is ILS -500.9M, reflecting a wider deficit compared to December 2025.
How does the recent trade data impact Palestine’s economy?
The persistent trade deficit signals ongoing external vulnerabilities and highlights the need for export growth and import management.
What does the Balance of Trade trend suggest for investors?
Investors are monitoring the trade gap as a key risk factor, with local assets and currency markets showing cautious sentiment.
Palestine’s trade deficit remains a central challenge, shaping both policy priorities and market sentiment in early 2026.
Updated 2/23/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
[1] Sigmanomics Economic Database, Palestine Balance of Trade, accessed February 23, 2026.
Economic Calendar - PS Events
Monday, February 23, 2026
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
08:00
PS
Balance of Trade
-500.9
-519.4
-600
-550.45
Low
Thursday, February 12, 2026
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
08:00
PS
Inflation Rate YoY
-14.4
-42.9
-30
-26.82
Low
Thursday, January 22, 2026
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
08:00
PS
Balance of Trade
-
-475.7
-480
-430.45
Low
Wednesday, January 14, 2026
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
07:30
PS
Inflation Rate YoY
-42.9
-38.9
-40
-36.83
Low
Monday, December 29, 2025
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
08:00
PS
Current Account
-750
-665
-750
-750.00
Low
08:00
PS
GDP Growth Rate YoY
-
4.7
5
5.00
Low
Sunday, December 28, 2025
Actual
Previous
Consensus
Sigmanomics Rolling-Surprise Forecast
Impact
08:00
PS
GDP Growth Rate YoY
-
4.7
5
5.00
Low
Symbol
Price
Analysis and Forecast
Palestine Balance of Trade Deficit Narrows Slightly in January The balance of trade measures the difference between a country’s exports and imports over a period. Palestine’s trade deficit stood at ILS -500.90 million in January 2026, improving from December’s -519.40 million, with the previous month’s deficit at -519.40 million and the release date on February 23, 2026. This marks the third consecutive month the deficit remains above the 12-month average, reflecting persistent import demand outpacing export growth. Despite a modest narrowing, the gap highlights ongoing structural challenges in Palestine’s external trade. Analysts from the Palestinian Monetary Authority note that while imports increased by 2.10%, exports grew only 1.50%, maintaining pressure on the trade balance. “The data underscore the need for stronger export diversification and import substitution policies to stabilize the external accounts,” said economist Rana Abu Khalil of the Palestinian Economic Policy Institute.
