The Palestine economy expanded 3.8 percent year-on-year in the first quarter of 2019, accelerating from a 3.4 percent growth in the previous period. This was the fastest pace of expansion since the fourth quarter of 2017, as private consumption increased faster (11.8 percent vs 11.4 percent in Q4). On the other hand, fixed investment growth slowed sharply (0.4 percent vs 3.4 percent) while government spending continued to contract (-8.7 percent vs -2.9 percent). Net external contributed negatively to GDP growth, as imports jumped 10.9 percent (vs 15.6 percent in Q4) while exports rose at a slower 4.2 percent (vs 12.1 percent in Q4). On a quarterly basis, the GDP shrank 2.5 percent in the first quarter, following a 3.1 percent expansion in the previous period. 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 2.10 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 2.20 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.