West Bank Economy Collapses: Accelerated Decline and Uncertain Future

The article addresses the accelerating economic collapse in the West Bank, where GDP fell by 8% in the first quarter of 2026, unemployment rose to 30%, and agricultural, industrial, and commercial sectors have been severely impacted by military operations, barriers, and settler attacks, along with a crisis of shekel accumulation and Israeli banks refusing to accept it.

The article addresses the accelerating economic collapse in the West Bank, describing an unprecedented decline in economic activity due to Israeli military operations, severe restrictions, and settler attacks. According to data from the Palestinian Central Bureau of Statistics, the West Bank economy shrank by 8% in the first quarter of 2026 compared to the last quarter of 2025, and per capita GDP fell by about 9%. Unemployment rose to around 30%, 78% of families reported a decline in income, and over 60% said they could not cover monthly expenses. The agricultural sector suffers from daily settler attacks, with UN data indicating over 950 incidents this year. The crisis of shekel accumulation in Palestinian banks is worsening after Israeli banks refused to accept it, hindering trade. Employees receive 50% of their salaries, and tens of thousands of workers have stopped working inside Israel. The article describes the situation as an existential test, not just an economic crisis.