Israel and Palestine
The relationship is shaped by occupation, the conflict over territory and self-determination, and civilian protection. Gaza and the West Bank face different situations; Israel, the Palestinian Authority and Hamas are not interchangeable actors. The economy and mobility are constrained by restrictions and a profound humanitarian crisis.
Analysis reviewed: 2026-10-07 · Indicators updated: 2026-10-07Territory and rights
The ICJ's July 2024 advisory opinion analyses the legal consequences of Israel's presence in the occupied Palestinian territory.
Civilians
OCHA documents obstacles to assistance in Gaza and violence, displacement and restrictions in the West Bank.
Bilateral indicators
Blank cells: data unavailable.
Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 5,112 M USD | 2024 · PCBS |
| Goods: Israel to Palestine | 3,646.1 M USD | 2024 · PCBS |
| Goods: Palestine to Israel | 1,465.9 M USD | 2024 · PCBS |
| Services trade | 337.1 M USD | 2024 · PCBS |
| Export share: Israel to Palestine | ||
| Export share: Palestine to Israel | 85.52 % | 2024 · PCBS |
| Investment stock: Israel in Palestine | ||
| Investment stock: Palestine in Israel |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2024 · Palestinian Central Bureau of Statistics · Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero. Sum of recorded goods flows in both directions.
- Goods: Israel to Palestine
- 2024 · Palestinian Central Bureau of Statistics · Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero. Palestinian imports from Israel; Palestinian reporting.
- Goods: Palestine to Israel
- 2024 · Palestinian Central Bureau of Statistics · Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero. Palestinian exports to Israel.
- Services trade
- 2024 · Palestinian Central Bureau of Statistics · Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero. Sum of recorded service exports (183.2) and imports (153.9) with Israel; goods are not included.
- Export share: Palestine to Israel
- 2024 · Palestinian Central Bureau of Statistics · Trade recorded by the PCBS, not every economic transaction. Coverage excludes the parts of Jerusalem specified in the publication; the absence of a figure for Gaza's exports is not interpreted as zero. Calculated share: exports to Israel divided by total recorded Palestinian exports (1,714.1 M USD). Not a share of Israeli exports.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
The aggregate Palestinian CPI reflects large differences between Gaza and the West Bank; its decline does not mean prices have fallen uniformly or living standards have recovered. Fiscal data cover central government.
| Indicator | Israel | Palestine |
|---|---|---|
| Nominal GDP | 610.78 billion USD2025 · WB | 17.17 billion USD2025 · WB |
| GDP per capita | 60,336.85 USD2025 · WB | 3,171.11 USD2025 · WB |
| GDP growth | 2.93 %2025 · WB | 4.34 %2025 · WB |
| Policy interest rate | 3.25 %2026-09-01 · BoI | Not comparable · ITA |
| Inflation · annual average | 3.04 %Annual average · 2025 · WB | 9.81 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | 1.5 %Year-on-year · Aug. 2026 · CBS Israel | -34.25 %Year-on-year · Aug. 2026 · PCBS |
| Unemployment | 3.49 %ILO est.2025 · WB | 48.5 %PCBS est.2025 · PCBS |
| Budget balance (% of GDP) | -5.2 %IMF est.2025 · IMF | -0.6 %provisionalprovisional2025 · PCBSCentral government · after grants |
| Gross public debt (% of GDP) | 68.5 %IMF est.2025 · IMF | 27.9 %provisionalprovisional2025 · PCBSCentral government |
| Current account balance (% of GDP) | 1.4 %2025 · WB | -15.82 %2025 · WB |
| Population | 10,122,8002025 · WB | 5,413,5962025 · WB |
| Area | 22,070 km²2023 · WB | 6,025 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDIsrael: 2025 · World BankPalestine: 2025 · World Bank
- GDP per capita
- Current USD per personIsrael: 2025 · World BankPalestine: 2025 · World Bank
- GDP growth
- Annual real change (%)Israel: 2025 · World BankPalestine: 2025 · World Bank
- Policy interest rate
- Central bank instrument (%)Israel: 2026-09-01 · Bank of Israel official interest rate · Bank of Israel · Published: 2026-09-01 · Monetary Committee decision of 1 September 2026; next decision announced for 21 October.Palestine: There is no national currency of its own or single directly comparable rate for this row. Lending and deposit rates by currency are not monetary policy rates; Israel's rate is not automatically inherited. · International Trade Administration, U.S. Department of Commerce
- Inflation · annual average
- Average annual change in headline CPI (%)Israel: 2025 · Annual average change in CPI (%) · World BankPalestine: 2025 · Annual average change in CPI (%) · World Bank
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedIsrael: 2026-08 · Change in headline CPI against the same month of the previous year (%) · Israel's Central Bureau of Statistics · Published: 2026-09-15 · Column relative to August 2025: 1.5%. Not the monthly increase (0.7%) or cumulative increase since December 2025 (2.1%).Palestine: 2026-08 · Change in headline CPI against the same month of the previous year (%) · Palestinian Central Bureau of Statistics · Published: 2026-09-14 · Palestinian aggregate published by PCBS in NIS. The result reflects very different situations: Gaza −58.39%, the West Bank +3.27% and Jerusalem J1 +3.30%. It does not mean prices have fallen uniformly or living standards have recovered; PCBS territorial coverage is retained.
- Unemployment
- % of the labour force; definition used by the stated institutionIsrael: 2025 · World Bank · ILO est.Palestine: 2025 · PCBS annual estimate of aggregate unemployment in Palestine (aged 15 or over); excludes parts of Jerusalem as specified in the report. · Palestinian Central Bureau of Statistics · PCBS est. · Table 3: Palestine 48.5%, the West Bank 30.9%, Gaza 77.9%. PCBS states that the Palestinian aggregate and Gaza are estimates for 2023–2025; this is not a complete survey of Gaza in 2025.
- Budget balance
- General government (% of GDP)Israel: 2025 · IMF — World Economic Outlook · IMF est.Palestine: 2025 · Overall central government balance after grants, on a commitment basis, as % of GDP; not a current or cash balance. · Palestinian Central Bureau of Statistics · provisional · Provisional · PCBS publishes a deficit of 0.6% of GDP. Table 5: −94.9 M USD and preliminary GDP of 17,167.1 M USD. Not the consolidated general-government WEO coverage used for other countries.
- Gross public debt
- General government (% of GDP)Israel: 2025 · IMF — World Economic Outlook · IMF est.Palestine: 2025 · Central government public debt at the end of 2025 divided by annual GDP, according to PCBS. · Palestinian Central Bureau of Statistics · provisional · Provisional · PCBS publishes 27.9% (debt 4,788.8 M USD). The debt and GDP scope of the same publication is retained; no inference is made to include every liability or arrear outside the source's coverage.
- Current account balance
- % of GDPIsrael: 2025 · World BankPalestine: 2025 · World Bank
- Population
- PeopleIsrael: 2025 · World BankPalestine: 2025 · World Bank
- Area
- Total area in km²; territorial coverage of the sourceIsrael: 2023 · Area according to the series' coverage; does not determine sovereignty or effective control · World BankPalestine: 2023 · Area according to the series' coverage; does not determine sovereignty or effective control · World Bank
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
Palestine at the United Nations
Non-member observer StateResolution of 29 November 2012
UN status; not equivalent to admission as a member or recognition by every State. [1]
Humanitarian report consulted
2 October 2026Published on 5 October 2026
The report's sections have their own periods; it is not a complete account of the entire situation as of 7 October. [3]
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
Israel to Palestine
| Product or sector | Value / share |
|---|---|
Palestine to Israel
| Product or sector | Value / share |
|---|---|
Connections between people
Labour flows, permits and displacement are different measures. Wage income is not converted into a number of workers. [3] [4]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from Israel living in Palestine | ||
| Residents from Palestine living in Israel | ||
| Study and training: Israel in Palestine | ||
| Study and training: Palestine in Israel | ||
| Academic stays: Israel in Palestine | ||
| Academic stays: Palestine in Israel | ||
| Travel: Israel to Palestine | ||
| Travel: Palestine to Israel |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
International status and Palestinian representation
The General Assembly granted Palestine non-member observer State status in November 2012. That status allows certain forms of international participation but is not equivalent to full United Nations membership or evidence of uniform control of the territory. Palestinian diplomatic representation, the Palestinian Authority and Hamas must be distinguished: discussing Palestine does not justify attributing the decisions or actions of a particular organisation to its entire population. [1]
The International Court of Justice's advisory opinion
In July 2024, the ICJ issued an advisory opinion on the consequences of Israeli policies and practices in the occupied Palestinian territory, including East Jerusalem. The Court found Israel's continued presence unlawful and identified obligations to bring it to an end. It is identified as an advisory opinion: it is not confused with a criminal judgment against individuals or a final ruling in a different proceeding before the Court. [2]
Employment, trade and statistical coverage
PCBS and the Palestine Monetary Authority publish balance-of-payments statistics, including compensation of Palestinian employees in Israel. Their fourth-quarter 2025 report put that compensation at 172 million USD. It is a quarterly income flow, not a number of workers or bilateral goods trade. The figure is kept outside the goods table and is not extrapolated to all of 2026. [4]
Recent developments
Recent developments and latest available data · Reviewed: 2026-10-07
Gaza: assistance and risk to displaced people
The OCHA report titled 2 October 2026 describes restrictions and insufficient funding for essential services and preparations for rain in Gaza. It identifies risks at displacement sites and in damaged buildings. It is not a count of the entire displaced population or a prediction of future casualties. [3]
The West Bank: a dynamic that must be analysed separately
The report documents demolitions, settler violence and access restrictions in the West Bank, alongside incidents affecting Israeli forces. In Jinba, a demolition on 23 September displaced 55 Palestinians, including 32 children, according to OCHA. This is an identified incident, not total displacement in the West Bank; its periods and coverage differ from those for Gaza. [3]
Milestones and consequences
- 2012-11-29
Observer status
The General Assembly grants Palestine non-member observer State status. [1]
- 2024-07-19
ICJ advisory opinion
The Court sets out the legal consequences of Israeli policies and presence in the occupied territory. [2]
- 2026-10-02
OCHA situation report
The report distinguishes needs and events in Gaza and the West Bank; it is published on 5 October. [3]
Sources and data
Periods and scope of the figures
Palestine retains the statistical coverage specified by each institution, including West Bank and Gaza at the World Bank. This does not establish uniform control or automatically include the entire diaspora. The ICJ opinion is distinguished from other legal proceedings. No casualty figure is presented as though independently verified or updated minute by minute.
- Palestine's status at the United Nations
United Nations / General Assembly · Institutional source · Document: 2012-11-29 · Accessed: 2026-10-07
- ICJ release on its advisory opinion
International Court of Justice / United Nations archive · Institutional source · Document: 2024-07-19 · Accessed: 2026-10-07
- Humanitarian Situation Report | 2 October 2026
OCHA / United Nations · Institutional source · Document: 2026-10-05 · Accessed: 2026-10-07
- Palestinian balance of payments, fourth quarter of 2025
PCBS and Palestine Monetary Authority · Institutional source · Accessed: 2026-10-07