The Palestine economy expanded 3.4 percent year-on-year in the fourth quarter of 2018, rebounding from a 0.5 percent fall in the previous period. Private consumption rebounded sharply (11.4 percent from -0.8 percent in Q3) while fixed investment continued to rise (3.4 percent from 5.1 percent). On the other hand, net external contributed negatively to GDP growth, as export increased by 12.1 percent (from 7.7 percent in Q3) while imports went up at a faster 15.6 (from 7.9 in Q3). Meantime, government spending declined (-2.9 percent from 8.5 percent in Q3). On a quarterly basis, the GDP grew 3 percent, following a 4 percent expansion in the third quarter. For 2018 as a whole, the economy grew 0.90 percent, compared to a 3 percent expansion in 2017. GDP Annual Growth Rate in Palestine averaged 3.94 percent from 2001 until 2018, 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 1.60 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 1.90 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.