Economy - overview:
The West Bank - the larger of the two areas under the Palestine Authority - 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 Palestine Authority 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. Meanwhile, unemployment has continued at more than half the labor force. ARAFAT's death in 2004 leaves open more political options that could affect the economy.
GDP:
purchasing power parity - $1.8 billion (2003 est.)
GDP - real growth rate:
6% (2003 est.)
GDP - per capita:
purchasing power parity - $800 (2003 est.)
GDP - composition by sector:
agriculture: 9%
industry: 28%
services: 63%
note: includes Gaza Strip (2002 est.)
Labor force:
364,000 (2004)
Labor force - by occupation:
agriculture 15%, industry 25%, services 60% (2004 est.)
Unemployment rate:
27.2% (includes Gaza Strip) (2004 est.)
Population below poverty line:
59% (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: $676.6 million
expenditures: $1.155 billion, including capital expenditures of NA; note - these budget data include Gaza Strip (2003)
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:
$205 million f.o.b., includes Gaza Strip (2002)
Exports - commodities:
olives, fruit, vegetables, limestone
Exports - partners:
Israel, Jordan, Gaza Strip (2000)
Imports:
$1.5 billion c.i.f., includes Gaza Strip (2002)
Imports - commodities:
food, consumer goods, construction materials
Imports - partners:
Israel, Jordan, Gaza Strip (2000)
Debt - external:
$108 million (includes Gaza Strip) (1997 est.)
Economic aid - recipient:
$2 billion (includes Gaza Strip) (2004 est.)
Currency (code):
new Israeli shekel (ILS); Jordanian dinar (JOD)
Exchange rates:
new Israeli shekels per US dollar - 4.482 (2004), 4.5541 (2003), 4.7378 (2002), 4.2057 (2001), 4.0773 (2000)
Fiscal year:
calendar year (since 1 January 1992)
