Economy - overview:
The West Bank - the larger of the two areas under the Palestinian Authority (PA)- has experienced a general decline in economic growth and a degradation in economic conditions made worse since the second intifadah began in September 2000. The downturn has been largely the result of the Israeli closure policies - the imposition of border closures in response to security incidents in Israel - which disrupted labor and commodity market relationships. In 2001, and even more severely in 2002, Israeli military measures in PA areas resulted in the destruction of much capital plant, the disruption of administrative structure, and widespread business closures. Including the Gaza Strip, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work in Israeli settlements, or in joint industrial zones, have lost their jobs. International aid of $2 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.
GDP (purchasing power parity):
$1.8 billion (2003 est.)
GDP (official exchange rate):
NA
GDP - real growth rate:
6.2% (2004 est.)
GDP - per capita (PPP):
$1,100 (2003 est.)
GDP - composition by sector:
agriculture: 9%
industry: 28%
services: 63%
note: includes Gaza Strip (2002 est.)
Labor force:
614,000 (April-June 2005)
Labor force - by occupation:
agriculture: 18.4%
industry: 24%
services: 57.6% (April-June 2005)
Unemployment rate:
19.9% (includes Gaza Strip) (January-September 2005)
Population below poverty line:
46% including Gaza Strip (2004 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices):
2.2% (includes Gaza Strip) (2001 est.)
Budget:
revenues: $964 million
expenditures: $1.34 billion; including capital expenditures of $NA; note - these budget data include Gaza Strip (2004)
Agriculture - products:
olives, citrus, vegetables; beef, dairy products
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
Industrial production growth rate:
NA%
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
Electricity - consumption:
NA kWh
Electricity - imports:
NA kWh
Exports:
$270 million f.o.b.; note - includes Gaza Strip (2003)
Exports - commodities:
olives, fruit, vegetables, limestone
Exports - partners:
Israel, Jordan, Gaza Strip (2004)
Imports:
$1.952 billion c.i.f.; note - includes Gaza Strip (2003)
Imports - commodities:
food, consumer goods, construction materials
Imports - partners:
Israel, Jordan, Gaza Strip (2004)
Debt - external:
$0; note - includes Gaza Strip (2002)
Economic aid - recipient:
$2 billion; note - includes Gaza Strip (2004 est.)
Currency (code):
new Israeli shekel (ILS); Jordanian dinar (JOD)
Exchange rates:
new Israeli shekels per US dollar - 4.4877 (2005), 4.482 (2004), 4.5541 (2003), 4.7378 (2002), 4.2057 (2001)
Fiscal year:
calendar year
