West Bank Economy Profile 2012

Economy - overview

The West Bank - the larger of the two areas comprising the Palestinian territories - experienced a high single-digit economic growth rate in 2010 as a result of inflows of donor aid, the Palestinian Authority's (PA) implementation of economic and security reforms, and the easing of some movement and access restrictions by the Israeli Government. Nevertheless, overall standard-of-living measures remain near levels seen prior to the start of the second intifada in 2000. The almost decade-long downturn largely has been a result of Israeli closure policies - a steady increase in movement and access restrictions across the West Bank in response to Israeli security concerns which have disrupted labor and trade flows, industrial capacity, and basic commerce, both external and internal. Since 2008, the PA under President Mahmoud ABBAS and Prime Minister Salam FAYYAD has implemented a largely successful campaign of institutional reforms that has contributed to increased security and 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 since 2008 also has contributed to an uptick in retail activity in larger cities. The biggest impediments to economic improvements in the West Bank remain Palestinians' lack of access to land and resources in Israeli-controlled areas, import and export restrictions, and a high-cost capital structure. Absent robust private sector growth, the PA will continue to rely heavily on donor aid for its budgetary needs.

GDP (purchasing power parity)

$12.79 billion (2009 est.)
$11.95 billion (2008)
note: data are in 2010 US dollars

GDP (official exchange rate)

$6.641 billion (2008 est.)

GDP - real growth rate

7% (2009 est.)
2.3% (2008 est.)

GDP - per capita (PPP)

$2,900 (2008 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.7%
industry: 13.6%
services: 82.6% (includes Gaza Strip) (2010 est.)

Population below poverty line

46% (2007 est.)

Labor force

694,000 (2009)

Labor force - by occupation

agriculture: 12%
industry: 23%
services: 65% (June 2008)

Unemployment rate

16.5% (2010 est.)
19% (2009 est.)

Unemployment, youth ages 15-24

total: 46.9%
male: 38.8%
female: 47.3% (2008)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Investment (gross fixed)

18.3% of GDP (2010 est.)

Budget

revenues: $1.87 billion
expenditures: $3.1 billion
note: Palestinian Authority, includes Gaza Strip (2010)

Taxes and other revenues

28.2% of GDP (2010)

Budget surplus (+) or deficit (-)

-18.5% of GDP (2010)

Inflation rate (consumer prices)

6% (2010 est.)
2.5% (2009 est.)
note: includes Gaza Strip

Commercial bank prime lending rate

7.3% (31 December 2010 est.)
7.3% (31 December 2009 est.)

Stock of money

$NA (31 December 2008)
$1.574 billion (31 December 2007)

Stock of narrow money

$232.6 million (31 December 2010)
$190 million (31 December 2007)

Stock of broad money

$6.674 billion (31 December 2010 est.)
$6.238 billion (31 December 2009 est.)

Stock of quasi money

$5.251 billion (31 December 2008)
$3.048 billion (31 December 2007)

Stock of domestic credit

$1.353 billion (31 December 2010 est.)
$1.475 billion (31 December 2009 est.)

Market value of publicly traded shares

$2.45 billion (31 December 2010)
$2.375 billion (31 December 2009)
$2.123 billion (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

NA%

Electricity - production

400 million kWh
note: most imported electricity is from Israel; Jerusalem District 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 (2008 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

3.572 billion kWh (2008 est.)

Electricity - exports

0 kWh (2009)

Electricity - imports

3.2 billion kWh (2008 est.)

Oil - production

0 bbl/day (2010 est.)

Oil - consumption

24,000 bbl/day (2010 est.)

Oil - exports

0 bbl/day (2009 est.)

Oil - imports

22,110 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2009 est.)

Natural gas - production

0 cu m (2009 est.)

Natural gas - consumption

0 cu m (2009 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

0 cu m (1 January 2011 est.)

Exports

$529 million (2008)
$339 million (2006)
note: includes Gaza Strip

Exports - commodities

stone, olives, fruit, vegetables, limestone

Imports

$3.772 billion (2008)
$2.84 billion (2006)

Imports - commodities

food, consumer goods, construction materials, petroleum, chemicals

Debt - external

$1.04 billion (2010 est.)
$1.3 billion (2007 est.)

Exchange rates

new Israeli shekels (ILS) per US dollar -
3.739 (2010)
3.932 (2009)
3.56 (2008)
4.14 (2007)
4.4565 (2006)