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West Bank Economy 2008

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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 a result of Israel's imposition of border closures in response to security incidents, which have 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 has interrupted the provision of PA social services and the payment of PA salaries. Since June 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.

GDP (purchasing power parity):
$5.034 billion (includes Gaza Strip) (2006 est.)

GDP (official exchange rate):
$5.328 billion (includes Gaza Strip) (2006 est.)

GDP - real growth rate:
-8% (includes Gaza Strip) (2006 est.)

GDP - per capita (PPP):
$1,100 (includes Gaza Strip) (2006 est.)

GDP - composition by sector:
agriculture: 8%
industry: 13%
services: 79% (includes Gaza Strip) (2006 est.)

Labor force:
605,000 (2006)

Labor force - by occupation:
agriculture: 18%
industry: 15%
services: 67% (2006)

Unemployment rate:
18.6% (2006)

Population below poverty line:
46% (2007 est.)

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

Inflation rate (consumer prices):
3.6% (includes Gaza Strip) (2006)

revenues: $1.149 billion
expenditures: $2.31 billion
note: includes Gaza Strip (2006)

Agriculture - products:
olives, citrus, vegetables; beef, dairy products

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

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

Exports - commodities:
olives, fruit, vegetables, limestone

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

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

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

Economic aid - recipient:
$1.4 billion; (includes Gaza Strip) (2006 est.)

Debt - external:

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 - 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003)

Fiscal year:
calendar year

NOTE: The information regarding West Bank on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of West Bank Economy 2008 information contained here. All suggestions for corrections of any errors about West Bank Economy 2008 should be addressed to the CIA.

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This page was last modified 24-May-08
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