West Bank Economy 2007

Economy - overview:
The West Bank - the larger of the two areas under the Palestinian Authority (PA) - has experienced a general decline in economic conditions since the second intifadah began in September 2000. The downturn has been largely the result of Israeli closure policies - the imposition of border closures in response to security incidents 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 since HAMAS took office in March 2006 has interrupted the provision of PA social services and the payment of PA salaries.

GDP (purchasing power parity):
$5.327 billion (includes Gaza Strip) (2005 est.)

GDP (official exchange rate):
$3.45 billion (includes Gaza Strip) (2003)

GDP - real growth rate:
4.9% (includes Gaza Strip) (2005 est.)

GDP - per capita (PPP):
$1,500 (includes Gaza Strip) (2005 est.)

GDP - composition by sector:
agriculture: 8%
industry: 18.2%
services: 73.9% (includes Gaza Strip) (2005 est.)

Labor force:
568,000 (2005)

Labor force - by occupation:
agriculture: 16%
industry: 29%
services: 55% (2005)

Unemployment rate:
20.3% (includes Gaza Strip) (2005)

Population below poverty line:
45.7% (2005)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
2.9% (includes Gaza Strip) (2005)

Budget:
revenues: $1.23 billion
expenditures: $1.64 billion (2005)

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:
2.4% (includes Gaza Strip) (2005)

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:
$301 million f.o.b.; (includes Gaza Strip) (2005)

Exports - commodities:
olives, fruit, vegetables, limestone

Exports - partners:
Israel, Jordan, Gaza Strip (2006)

Imports:
$2.44 billion c.i.f.; (includes Gaza Strip) (2005)

Imports - commodities:
food, consumer goods, construction materials

Imports - partners:
Israel, Jordan, Gaza Strip (2006)

Economic aid - recipient:
$1.102 billion; (includes Gaza Strip) (2005)

Debt - external:
$NA

Market value of publicly traded shares:
$4.461 billion (2005)

Currency (code):
new Israeli shekel (ILS); Jordanian dinar (JOD)

Exchange rates:
new Israeli shekels per US dollar - 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003), 4.7378 (2002)