nturn in economic activity was largely the
result of Israeli closure policies--the imposition of generalized
border closures in response to security incidents in Israel--which
disrupted previously established labor and commodity market
relationships between Israel and the WBGS. The most serious negative
social effect of this downturn has been the emergence of chronic
unemployment; average unemployment rates in the WBGS during the
1980s were generally under 5%, by the mid-1990s this level had risen
to over 20%. Since 1997 Israel's use of comprehensive closures has
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. These positive changes to the
conduct of economic activity, combined with international donor
pledges of over $3 billion made to the Palestinian Authority in
November, may fuel a moderate economic recovery in 1999.

GDP: purchasing power parity--$3.1 billion (1998 est.)

GDP--real growth rate: 2.2% (1998 est.)

GDP--per capita: purchasing power parity?$2,000 (1998 est.)

GDP--composition by sector:
agriculture: 33%
industry: 25%
services: 42% (1995 est., includes Gaza Strip)

Population below poverty line: NA%

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

Inflation rate (consumer prices): 7.6% (1997 est.)

Labor force: NA
note: excluding Israeli settlers

Labor force--by occupation: agriculture 13%, industry 13%,
commerce, restaurants, and hotels 12%, construction 8%, other
services 54% (1996)

Unemployment rate: 17.3% (1997 est.)

Budget:
revenues: $816 million
expenditures: $866 million, including capital expenditures of $NA
(1997 est.)
note: includes Gaza Strip

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: 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; at the