Bank

Economy - overview:
The West Bank - the larger of the two areas under the Palestine
Authority - has experienced a general decline in economic growth and
a degradation in economic conditions made worse since the second
intifadah began in September 2000. The downturn has been largely the
result of the Israeli closure policies - the imposition of border
closures in response to security incidents in Israel - which
disrupted labor and commodity market relationships. In 2001, and
even more severely in 2002, Israeli military measures in Palestine
Authority areas resulted in the destruction of much capital plant,
the disruption of administrative structure, and widespread business
closures. Including the Gaza Strip, the UN estimates that more than
100,000 Palestinians out of the 125,000 who used to work in Israeli
settlements, or in joint industrial zones, have lost their jobs.
International aid of $2 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. Meanwhile,
unemployment has continued at more than half the labor force.
ARAFAT's death in 2004 leaves open more political options that could
affect the economy.

GDP (purchasing power parity):
$1.8 billion (2003 est.)

GDP - real growth rate:
6% (2003 est.)

GDP - per capita:
purchasing power parity - $800 (2003 est.)

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

Labor force:
364,000 (2004)

Labor force - by occupation:
agriculture 15%, industry 25%, services 60% (2004 est.)

Unemployment rate:
27.2% (includes Gaza Strip) (2004 est.)

Population below poverty line:
59% (2004 est.)

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

Inflation rate (consumer prices):
2.2% (includes Gaza Strip) (2001 est.)

Budget:
revenues: $676.6 million
expenditures: $1.155 billion, including capital expenditures of NA;
note - these budget data include Gaza Strip (2003)

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 indus