Economy - overview Economic output in the West Bank is governed by the Paris Economic Protocol of April 1994 between Israel and the Palestinian Authority. 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; unemployment 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 five 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. These changes fueled an almost three-year-long economic recovery in the West Bank and Gaza Strip; real GDP grew by 5% in 1998 and 6% in 1999. Recovery was upended in the last quarter of 2000 with the outbreak of Palestinian 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, internal turmoil and Israeli military measures in Palestinian Authority areas have resulted in the destruction of much capital plant and administrative structure, widespread business closures, and a sharp drop in GDP. Another major loss has been the decline in earnings of Palestinian workers in Israel.

GDP purchasing power parity - $2.1 billion (2001 est.)

GDP - real growth rate -35% (2001 est.)

GDP - per capita purchasing power parity - $1,000 (2001 est.)

GDP - composition by sector
agriculture: 9%
industry: 28%
services: 63%
note: includes Gaza Strip (1999 est.)

Population below poverty line 50% (2001 est.)

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

Inflation rate (consumer prices) 1% (includes Gaza Strip) (2001 est.)

Labor force NA

Labor force - by occupation services 66%, industry 21%, agriculture 13% (1996)

Unemployment rate 26% (includes Gaza Strip) (2001 est.)

Budget
revenues: $930 million
note: includes Gaza Strip (2000 est.)
expenditures: $1.2 billion, including capital expenditures of $15 million

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 same time, some Palestinian municipalities, such as Nablus and Janin, generate their own electricity from small power plants

Electricity - production by source
fossil fuel: NA%
hydro: NA%
nuclear: NA%
other: NA%

Electricity - consumption NA kWh

Electricity - imports NA kWh

Agriculture - products olives, citrus, vegetables; beef, dairy products

Exports $603 million (includes Gaza Strip) (f.o.b., 2001 est.)

Exports - commodities olives, fruit, vegetables, limestone

Exports - partners Israel, Jordan, Gaza Strip

Imports $1.9 billion (includes Gaza Strip) (c.i.f., 2001 est.)

Imports - commodities food, consumer goods, construction materials

Imports - partners Israel, Jordan, Gaza Strip

Debt - external $108 million (includes Gaza Strip) (1997 est.)

Economic aid - recipient $800 million disbursed (includes Gaza Strip) (2001 est.)

Currency new Israeli shekel (ILS); Jordanian dinar (JOD)

Currency code ILS; JOD

Exchange rates new Israeli shekels per US dollar - 4.2757 (December 2001), 4.2057 (2001), 4.0773 (2000), 4.1397 (1999), 3.8001 (1998), 3.4494 (1997); Jordanian dinars per US dollar - fixed rate of 0.7090 (from 1996)

Fiscal year calendar year (since 1 January 1992)

NOTE: The information regarding West Bank on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of West Bank Economy 2002 information contained here. All suggestions for corrections of any errors about West Bank Economy 2002 should be addressed to the CIA.