The Palestine economy advanced 2.5 percent year-on-year in the second quarter of 2019, easing from a 3.8 percent expansion in the previous period. Net foreign trade contributed negatively to growth, as exports advanced 1.5 percent (from 4.2 percent in Q1) while imports rose 4.3 percent (from 10.9 percent in Q1). Meantime, final consumption output increased at a much softer pace (2.8 percent vs 6.8 percent). On the other hand, gross fixed capital formation production advanced faster (3.0 percent vs 0.4 percent). On a quarterly basis, the GDP contracted 2.0 percent, following a 2.5 percent fall in the first quarter of 2018. GDP Annual Growth Rate in Palestine averaged 3.85 percent from 2001 until 2019, reaching an all time high of 26.03 percent in the third quarter of 2003 and a record low of -21.59 percent in the fourth quarter of 2006.
GDP Annual Growth Rate in Palestine is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Palestine to stand at 2.00 in 12 months time. In the long-term, the Palestine GDP Annual Growth Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.