Palestine's current account deficit widened to USD 399 million in the fourth quarter of 2018 from USD 303.6 million in the same period a year earlier, a preliminary result showed. The goods account deficit increased to USD 1,256 million from USD 1,145.9 million in Q4 2017 and the services account gap rose to USD 264 million in Q4 2018 from USD 240.7 million in the same period of 2017. On the other hand, the current transfer surplus decreased to USD 509 million from USD 538.7 million in Q4 2017 while the income surplus went up to USD 612 million from USD 544.3 million in the same period of 2017. Current Account in Palestine averaged -537.46 USD Million from 2000 until 2016, reaching an all time high of 764.40 USD Million in the fourth quarter of 2008 and a record low of -1516.00 USD Million in the fourth quarter of 2004.
Current Account in Palestine is expected to be -395.00 USD Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Palestine to stand at -420.00 in 12 months time. In the long-term, the Palestine Current Account is projected to trend around -450.00 USD Million in 2020, according to our econometric models.