Moderate costs (CPI: 57.8). Groceries (60.3) and restaurants (44.4) are relatively affordable, while rent (11.9) is very low compared to major global cities.

Property prices average 5.7 years of household income, indicating affordability. The rental market (index: 11.9) is also very affordable.

A purchasing power index of 56.6 suggests low buying power compared to NYC. The GDP is $19.11 billion.

Palestine has a progressive income tax system with rates from 5% to 15% (ILS 1-75,000: 5%; ILS 75,001-150,000: 10%; ILS 150,001+: 15%). The standard VAT rate is 16%, and property tax is levied at 17% of assessed rental income. No social security contributions are levied on individuals.

The business environment is improving with recent legislative reforms, including a new Companies Law (2021) and E-Commerce Law (2025), and a Competition Law. A resilient startup ecosystem is growing, particularly in tech, though it faces funding challenges.

While a pension scheme exists for public sector employees, a comprehensive social security system for the private sector is under development. A 2022 bill aims to expand coverage to include old-age, disability, maternity, unemployment, and health insurance.

Deposits are protected up to US$10,000 per depositor by the Palestine Deposit Insurance Corporation (PDIC), covering approximately 92-93% of depositors. The Palestine Monetary Authority (PMA) oversees a generally stable and well-capitalized banking sector, though it faces significant challenges from the ongoing conflict and external political factors.