THE WORLD, CONNECTEDGeopolitical Relationship Atlas
BILATERAL RELATIONSHIP

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: 2026-10-07

Territory 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.

Economy

Employment, trade and services must be read with their territorial coverage and date.

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.

Indicators of the relationship between Israel and Palestine
IndicatorValuePeriod
Goods trade5,112 M USD2024 · PCBS
Goods: Israel to Palestine3,646.1 M USD2024 · PCBS
Goods: Palestine to Israel1,465.9 M USD2024 · PCBS
Services trade337.1 M USD2024 · PCBS
Export share: Israel to Palestine
Export share: Palestine to Israel85.52 %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.

Economic and demographic comparison of Israel and Palestine
IndicatorIsraelPalestine
Nominal GDP610.78 billion USD2025 · WB17.17 billion USD2025 · WB
GDP per capita60,336.85 USD2025 · WB3,171.11 USD2025 · WB
GDP growth2.93 %2025 · WB4.34 %2025 · WB
Policy interest rate3.25 %2026-09-01 · BoINot comparable · ITA
Inflation · annual average3.04 %Annual average · 2025 · WB9.81 %Annual average · 2025 · WB
Inflation · latest year-on-year figure1.5 %Year-on-year · Aug. 2026 · CBS Israel-34.25 %Year-on-year · Aug. 2026 · PCBS
Unemployment3.49 %ILO est.2025 · WB48.5 %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 · IMF27.9 %provisionalprovisional2025 · PCBSCentral government
Current account balance (% of GDP)1.4 %2025 · WB-15.82 %2025 · WB
Population10,122,8002025 · WB5,413,5962025 · WB
Area22,070 km²2023 · WB6,025 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 State

Resolution of 29 November 2012

UN status; not equivalent to admission as a member or recognition by every State. [1]

Humanitarian report consulted

2 October 2026

Published 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

Trade composition unavailable from Israel to Palestine
Product or sectorValue / share

Palestine to Israel

Trade composition unavailable from Palestine to Israel
Product or sectorValue / 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.

Indicators of human connections between Israel and Palestine
IndicatorValuePeriod / 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

  1. 2012-11-29

    Observer status

    The General Assembly grants Palestine non-member observer State status. [1]

  2. 2024-07-19

    ICJ advisory opinion

    The Court sets out the legal consequences of Israeli policies and presence in the occupied territory. [2]

  3. 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.

  1. Palestine's status at the United Nations

    United Nations / General Assembly · Institutional source · Document: 2012-11-29 · Accessed: 2026-10-07

  2. ICJ release on its advisory opinion

    International Court of Justice / United Nations archive · Institutional source · Document: 2024-07-19 · Accessed: 2026-10-07

  3. Humanitarian Situation Report | 2 October 2026

    OCHA / United Nations · Institutional source · Document: 2026-10-05 · Accessed: 2026-10-07

  4. Palestinian balance of payments, fourth quarter of 2025

    PCBS and Palestine Monetary Authority · Institutional source · Accessed: 2026-10-07

Additional sources on products and human connections