Economic overview: Real per capita GDP for the West Bank and Gaza Strip (WBGS) declined by about one-third between 1992 and 1996 due to the combined effect of falling aggregate incomes and rapid population growth. The downturn in economic activity was largely the result of Israeli closure policies - the imposition of border closures in response to security incidents in Israel - which disrupted labor and commodity market relationships between Israel and the WBGS. The most serious social effect of this downturn was rising unemployment, which in the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Israel's use of comprehensive closures during the next three years decreased and, in 1998, Israel implemented new policies to reduce the impact of closures and other security procedures on the movement of Palestinian goods and labor. Recovery was upended in the last quarter of 2000 with the outbreak of violence, which triggered tight Israeli closures of Palestinian self-rule areas and severely disrupted trade and labor movements. In 2001, and even more severely in 2002, Israeli military measures in Palestinian Authority areas resulted in the destruction of much capital plant and administrative structure, widespread business closures, and a sharp drop in GDP. Including Gaza Strip, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work in Israel, in Israeli settlements, or in joint industrial zones have lost their jobs. In addition, about 80,000 Palestinian workers inside the Territories are losing their jobs. International aid of $2 billion in 2001-02 to the West Bank and Gaza Strip prevented the complete collapse of the economy.

--- West Bank and Gaza Strip

GDP: purchasing power $2.468 billion (2003 est.)

GDP - real growth rate: -22% in the West Bank, 4.5% in the Gaza Strip (2003 est.)

GDP - per capita: purchasing power parity - $800 in the West Bank (2002 est.) $600 in the Gaza Strip (2003 est.)

GDP - composition by sector: agriculture: 9% industry: 28% services: 63% (2002 est.)

Population below poverty line: 60% (2003 est.)

Inflation rate (consumer prices): 2.2%

Labour Force: NA

Labour force by occupation: agriculture: 13%, industry 21%, services 66% (1996)

Unemployment rate: 60% (2003 est.)

Budget: revenues: $676.6 million expenditures: $1.155 billion, including capital expenditures of NA (2003 est.)

Agricultural products: olives, citrus, vegetables; beef, diary 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: electricity supplied by Israel

Electricity consumption: NA kWh

Electricity imports: NA kWh - note: electricity supplied by Israel (2001)

Exports: $603 million f.o.b.

Export commodities: citrus, flowers

Export partners: Israel, Egypt

Imports: $1.9 billion c.i.f.

Import partners: Israel, Egypt

Debt - external: $108 million (1997)

Economic aid - receipient: $2.8 billion (2001 est.)

Currency: new Israeli shekel (ILS - West Bank & Gaza Strip); Jordanian dinar (JOD - West Bank)

Currency code: ILS; JOD

Exchange rates: new Israeli shekels per US dollar - 4.5541 (2003), 4.7378 (2002), 4.2057 (2001), 4.0773 (2000), 4.1397 (1999); Jordanian dinars per US dollar - fixed rate of 0.7090 (from 1996)

Fiscal year: calendar year (since 1 January 1992)

See also

Palestine

Palestinian National Authority

Palestinian