Story perspectives

Palestinian Finance Minister Warns of 2026 Financial Crisis

2/14/2026

Summary

Story summary

Estephan Salameh, Palestinian Finance Minister, warned that 2026 will be the PA's most financially challenging year as Israel withholds revenues.
Salameh said the PA's public debt exceeds $15.4 billion.
Since the Gaza war began in October 2023, Israeli deductions from clearance revenues have driven the fiscal deficit to $4.26 billion.
The strain has hit public services, especially education, with schools operating three days a week and many students dropping out.

History

Historical Context

The Palestinian Authority (PA) has faced financial crises since its establishment in 1994, exacerbated by Israeli revenue withholding and declining international aid. In 2015, the PA's public debt reached $4 billion, with a 3.5% economic contraction reported by the World Bank. By 2026, debt is projected to soar to $15.4 billion, threatening essential services and highlighting ongoing economic instability in the region.

1 of 2

Story summary

Estephan Salameh, Palestinian Finance Minister, warned that 2026 will be the PA's most financially challenging year as Israel withholds revenues.
Salameh said the PA's public debt exceeds $15.4 billion.
Since the Gaza war began in October 2023, Israeli deductions from clearance revenues have driven the fiscal deficit to $4.26 billion.
The strain has hit public services, especially education, with schools operating three days a week and many students dropping out.

1 / 2