Palestine's current account deficit narrowed to USD 306 million in the first quarter of 2019 from USD 442.1 million in the same period a year earlier, a preliminary result showed. This was the smallest current account gap since the fourth quarter 2017, as the goods account deficit fell to USD 1,208 million from USD 1,236 million in Q1 2018; the current transfer surplus increased to USD 517 million from USD 436.4 million in Q1 2018; and the income surplus went up to USD 640 million from USD 506.9 million in the same period of 2018. Meanwhile, the services account gap rose to USD 255 million in Q1 2019 from USD 235.7 million in the same period of 2018. 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.