Palestinian Economy
Economy - overview: The West Bank - the larger of the two areas comprising the Palestinian Authority (PA) - experienced a limited revival of economic activity in 2009 as a result of inflows of donor assistance, the PA's implementation of economic reforms, improved security, and the easing of movement and access restrictions by the Israeli Government. Nevertheless, overall standard-of-living measures remain below those seen prior to the start of the second intifada in 2000. The almost decade-long downturn has been largely a result of Israeli closure policies - a steady increase in Israeli-imposed movement and access restrictions across the West Bank in response to security concerns in Israel - which disrupted labor flows, manufacturing, and commerce, both external and internal. Since 2008, the PA under President Mahmoud ABBAS and Prime Minister Salam FAYYAD have implemented a largely successful campaign of institutional reforms and economic development that has contributed to increased economic performance, supported by more than $3 billion in direct foreign donor assistance to the PA's budget since 2007. An easing of some Israeli restrictions on West Bank movement and access in 2008 and 2009 also contributed to an uptick in retail and entertainment activity in larger cities. The biggest impediments to growth remain lack of access to land and resources in Israeli-controlled areas, import and export restrictions, and a high-cost capital structure. Absent private sector-driven growth, the PA will continue to rely on donor aid for its budgetary needs.
GDP (purchasing power parity): $12.79 billion (2009 est.)
GDP (official exchange rate): $6.641 billion (2008 est.)
GDP - real growth rate: 7% (2009 est.)
GDP - per capita (PPP): $2,900 (2008 est.)
GDP - composition by sector: agriculture: 5%
industry: 14%
services: 81% (includes Gaza Strip) (2008 est.)
Labor force: 694,000 (2009)
Labor force - by occupation: agriculture: 12%
industry: 23%
services: 65% (June 2008)
Unemployment rate: 19% (2009 est.)
Household income or consumption by percentage share: lowest 10%: NA%
highest 10%: NA%
Investment (gross fixed):  
Budget: revenues: $1.63 billion
expenditures: $3.08 billion
note: includes Gaza Strip (2009)
Public debt:  
Inflation rate (consumer prices): 9.9% (2009 est.)
Central bank discount rate:  
Commercial bank prime lending rate: 7.19% (31 December 2008)
Agriculture - products: olives, citrus fruit, vegetables; beef, dairy products
Industries: small-scale manufacturing, quarrying, textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs
Industrial production growth rate: 2.4% (includes Gaza Strip) (2005)
Electricity - production: 500 million kWh
Electricity - consumption: 3.265 billion kWh (2007 est.)
Electricity - exports: 0 kWh (2008)
Electricity - imports: 2.8 billion kWh (2007 est.)
Oil - production: 0 bbl/day (2009 est.)
Oil - consumption: 24,000 bbl/day (2009 est.)
Oil - exports: 511 bbl/day (2007 est.)
Oil - imports: 22,150 bbl/day (2007 est.)
Oil - proved reserves: NA bbl
Natural gas - production: 0 cu m (2008 est.)
Natural gas - consumption: 0 cu m (2008 est.)
Natural gas - exports: 0 cu m (2008 est.)
Natural gas - imports: 0 cu m (2008 est.)
Current account balance:  
Exports: $529 million (2008)
Exports - commodities: stone, olives, fruit, vegetables, limestone
Exports - partners:  
Imports: $3.772 billion (2008)
Imports - commodities: food, consumer goods, construction materials, petroleum, chemicals
Imports - partners:  
Reserves of foreign exchange and gold:  
Debt - external: $1.3 billion (2007 est.)
Stock of direct foreign investment - at home:  
Stock of direct foreign investment - abroad:  
Exchange rates: new Israeli shekels (ILS) per US dollar - 3.93 (2009), 3.56 (2008), 4.14 (2007), 4.4565 (2006), 4.4877 (2005)
economic climate  
Background:  
Export opportunities:  
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Update: This page was last updated on 3 August 2010
Sources:

1. CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/al.html
2. DIBNC Experts Team