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Quarterly Economic Forecasts - Third Quarter 2025
The Palestinian Monetary Authority issued its Third Quarter 2025 Economic Forecasts, projecting a significant slowdown in Palestinian economic growth to 1.7% due to renewed military operations in Gaza and tightened restrictions in the West Bank. The report highlights a sharp rise in inflation to 42.3% driven by supply chain disruptions and high fuel costs, alongside severe fiscal pressures from Israeli deductions of clearance revenues. These developments reflect a fragile economic recovery characterized by weak private consumption, reduced credit facilities, and persistent geopolitical instability.
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