Overview: Economic progress in the West Bank has been hampered by Israeli military administration and the effects of the Palestinian uprising (intifadah). Industries using advanced technology or requiring sizable investment have been discouraged by a lack of local capital and restrictive Israeli policies. Capital investment consists largely of residential housing, not productive assets that would enable local Palestinian firms to compete with Israeli industry. A major share of GNP has traditionally been derived from remittances of workers employed in Israel and Persian Gulf states. Such transfers from the Gulf dropped after Iraq invaded Kuwait in August 1990. In the wake of the Persian Gulf crisis, many Palestinians have returned to the West Bank, increasing unemployment, and export revenues have dropped because of the decline of markets in Jordan and the Gulf states. Israeli measures to curtail the intifadah also have added to unemployment and lowered living standards. The area's economic situation has worsened since Israel's partial closure of the territories in 1993.

National product: GNP - exchange rate conversion - $2 billion (1991 est.)

National product real growth rate: -7% (1991 est.)

National product per capita: $2,050 (1991 est.)

Inflation rate (consumer prices): 12% (1991 est.)

Unemployment rate: 15% (1991 est.)

Budget:
revenues: $43.4 million
expenditures: $43.7 million, including capital expenditures of $NA (FY90)

Exports: $175 million (f.o.b., 1991 est.)
commodities: olives, fruit, vegetables
partners: Jordan, Israel

Imports: $775 million (c.i.f., 1991 est.)
commodities: food, consumer goods, construction materials
partners: Jordan, Israel

External debt: $NA

Industrial production: growth rate -1% (1991); accounts for about 6% of GNP

Electricity: power supplied by Israel

Industries: generally small family businesses that produce cement, 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

Agriculture: accounts for about 23% of GNP; olives, citrus and other fruits, vegetables, beef, and dairy products

Economic aid: $NA

Currency: 1 new Israeli shekel (NIS) = 100 new agorot; 1 Jordanian dinar (JD) = 1,000 fils
Exchange rates: new Israeli shekels (NIS) per US$1 - 2.9760 (February 1994), 2.8301 (1993), 2.4591 (1992), 2.2791 (1991), 2.0162 (1990), 1.9164 (1989); Jordanian dinars (JD) per US$1 - 0.7019 (February 1994), 0.6928 (1993), 0.6797 (1992), 0.6808 (1991), 0.6636 (1990), 0.5704 (1989)

Fiscal year: calendar year (since 1 January 1992)

NOTE: The information regarding West Bank on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of West Bank Economy 1995 information contained here. All suggestions for corrections of any errors about West Bank Economy 1995 should be addressed to the CIA.