Economy - overview: |
The West Bank - the larger of the two areas comprising the Palestinian Authority (PA) - has experienced a general decline in economic conditions since the second intifada began in September 2000. The downturn has been largely a result of Israeli closure policies - the imposition of closures and access restrictions in response to security concerns in Israel - which disrupted labor and trading relationships. In 2001, and even more severely in 2002, Israeli military measures in PA areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. International aid of at least $1.14 billion to the West Bank and Gaza Strip in 2004 prevented the complete collapse of the economy and allowed some reforms in the government's financial operations. In 2005, high unemployment and limited trade opportunities - due to continued closures both within the West Bank and externally - stymied growth. Israel's and the international community's financial embargo of the PA when HAMAS ran the PA during March 2006 - June 2007 interrupted the provision of PA social services and the payment of PA salaries. Since then the FAYYAD government in the West Bank has restarted salary payments and the provision of services but would be unable to operate absent high levels of international assistance. |
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GDP (purchasing power parity): |
$11.95 billion (includes Gaza Strip) (2008 est.) |
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GDP (official exchange rate): |
$6.641 billion (includes Gaza Strip) (2008 est.) |
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GDP - real growth rate: |
0.8% (includes Gaza Strip) (2008 est.) |
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GDP - per capita (PPP): |
$2,900 (includes Gaza Strip) (2008 est.) |
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GDP - composition by sector: |
agriculture: 8%
industry: 13%
services: 79% (includes Gaza Strip) (2007 est.) |
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Labor force: |
605,000 (2006) |
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Labor force - by occupation: |
agriculture: 17%
industry: 15%
services: 68% (June 2008) |
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Unemployment rate: |
16.3% (June 2008) |
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Household income or consumption by percentage share: |
lowest 10%: NA%
highest 10%: NA% |
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Budget: |
revenues: $1.149 billion
expenditures: $2.31 billion
note: includes Gaza Strip (2006) |
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Inflation rate (consumer prices): |
11.5% (includes Gaza Strip) (2008) |
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Commercial bank prime lending rate: |
7.73% (31 December 2006) |
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Stock of money: |
$1.574 billion (31 December 2007) |
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Stock of quasi money: |
$3.048 billion (31 December 2007) |
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Stock of domestic credit: |
$1.455 billion (31 December 2007) |
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Market value of publicly traded shares: |
$2.475 billion (31 December 2007) |
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Agriculture - products: |
olives, citrus, vegetables; beef, dairy products |
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Industries: |
cement, quarrying, textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis have established some small-scale, modern industries in the settlements and industrial centers |
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Industrial production growth rate: |
2.4% (includes Gaza Strip) (2005) |
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Electricity - production: |
NA kWh; note - most electricity imported from Israel; East Jerusalem Electric Company buys and distributes electricity to Palestinians in East Jerusalem and its concession in the West Bank; the Israel Electric Company directly supplies electricity to most Jewish residents and military facilities; some Palestinian municipalities, such as Nablus and Janin, generate their own electricity from small power plants |
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Electricity - consumption: |
NA kWh |
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Electricity - imports: |
NA kWh |
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Exports: |
$339 million f.o.b.; (includes Gaza Strip) (2006) |
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Exports - commodities: |
olives, fruit, vegetables, limestone |
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Imports: |
$1.3 billion c.i.f.; (includes Gaza Strip) (2006) |
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Imports - commodities: |
food, consumer goods, construction materials |
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Debt - external: |
|
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Exchange rates: |
new Israeli shekels (ILS) per US dollar - 3.56 (2008 est.), 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004) |
