Economy of the State of Palestine

Economy of Palestine
Ramallah, the financial hub of Palestine
CurrencyNo official currency. Currencies generally used in Palestine include:
Calendar year
Trade organisations
OIC, Group of 77
Country group
Statistics
PopulationIncrease 4,569,087 (2018)[4]
GDP$10 billion (2012 est.)
GDP growth
  • 1.2% (2017) 0.9% (2018)
  • −2.5% (2019e) 2.1% (2020f)[5]
GDP per capita
GDP by sector
  • Agriculture: 5.5%
  • Industry: 23.4%
  • Services: 71.1%
  • (2014 UN data)[7]
2.7% (June 2013)[8]
Population below poverty line
25.8% (2011 est.)[9]
  • Increase 0.690 medium (2018)[10] (119th)
  • Increase 0.597 medium IHDI (2018)[11]
Labour force
  • Increase 1,316,023 (2019)[12]
  • Decrease 32.0% employment rate (2018)[13]
Labour force by occupation
  • Agriculture: 12%
  • Industry: 23%
  • Services: 65%
  • (2008 est.)
Unemployment27.5% (Q1 2013)[14]
Main industries
Cement, quarrying, textiles, soap, olive-wood carvings, mother-of-pearl souvenirs, food processing
External
Exports$720 million (2011)[15]
Export goods
Olives, fruit, vegetables, limestone, citrus, flowers, textiles
Main export partners
Imports$4.2 billion (2011)[15]
Import goods
Food, consumer goods, construction materials
Main import partners
Public finances
$4.2 billion (June 2013)[17]
$1.3 billion (13% of GDP; 2012 est.)[18]
Revenues$2.2 billion (2012 est.)
Expenses$3.54 billion (2012)[18]
$464 million (march 2016)[19][20] (163nd)
[21][22]
All values, unless otherwise stated, are in US dollars.

The economy of the State of Palestine refers to the economic activity of the State of Palestine. Palestine receives substantial financial aid from various international donors, including governments and international organizations. In 2020, the inflation rate of -0.7% and unemployment rate was 25.9%.[23] While exports were recorded at US$1 billion, with an import value of US$6 billion.[23] Contributors to the national economy is service sector (47%), wholesale and repair (19%), manufacturing (12%), agriculture (7%), finance and banking (3%), construction (5%), information technology (5%) and transportation sector (2%).[23]

This aid is crucial for supporting the Palestinian Authority and funding public services and development projects. Palestinians working abroad send money back to their families in Palestine. These remittances provide a significant source of income for many households. Palestinian economy relies heavily on donations and international aid from various sources, including UNRWA, Qatar, Turkey, the European Union, and non-governmental organizations.[24][25] Contribution to the economy also comes from remittances sent by the Palestinian diaspora.[26][27] Gazans experience additional difficulties as they are subjected to a siege, with Israel controlling the movement of people and goods in and out of Gaza. Nonetheless, there are limited business opportunities available in Gaza. Contrastingly, the West Bank provides Palestinians with more diverse opportunities.[28] Some individuals own businesses in tourism-driven areas such as Bethlehem and Jerusalem, as tourism serves as a significant source of income.[29][30] Others engage in various types of enterprises in cities like Ramallah and Hebron, ranging from trading to construction and IT services.[31][32] Furthermore, approximately 100,000 Palestinians find employment in Israeli companies as low-cost labor, earning significantly less than the average Israeli worker.

While trade is restricted due to political factors, Palestine does engage in some export activities. Palestinian products, such as agricultural goods and traditional crafts, are exported to regional and international markets. Despite the challenges, tourism plays a role in the Palestinian economy. The historical and cultural significance of places like Bethlehem and Jerusalem draws tourists. Agriculture remains a crucial sector, with Palestinians cultivating crops, producing olive oil, and raising livestock. Some Palestinians work in various service industries, including education, healthcare, and technology. Palestine hosts numerous international non-governmental organizations (NGOs) and humanitarian agencies, which contribute to the local economy and provide employment.

  1. ^ a b c Cite error: The named reference Cobham was invoked but never defined (see the help page).
  2. ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
  3. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
  4. ^ "Population, total - West Bank and Gaza". data.worldbank.org. World Bank. Retrieved 5 November 2019.
  5. ^ Rabah, Arezki; Daniel, Lederman; Amani, Abou Harb; Nelly, El-Mallakh; Yuting, Fan; Asif, Islam; Ha, Nguyen; Marwane, Zouaidi (9 April 2020). Middle East and North Africa Economic Update, April 2020 : How Transparency Can Help the Middle East and North Africa. World Bank. p. 10. ISBN 9781464815614. Retrieved 10 April 2020. {{cite book}}: |website= ignored (help)
  6. ^ "Tracking Economic Growth in the West Bank and Gaza since 2007". Washington Institute. Retrieved 12 June 2014.
  7. ^ "UN data on State of Palestine".
  8. ^ "Palestinian Consumer Price Index, June 2013".
  9. ^ "Palestinian Central Bureau of Statistics (PCBS) On the Eve of the International Population Day 11/07/2012" (PDF). Archived from the original (PDF) on 6 May 2014.
  10. ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
  11. ^ "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 22 May 2020.
  12. ^ "Labor force, total - West Bank and Gaza". data.worldbank.org. World Bank. Retrieved 5 November 2019.
  13. ^ "Employment to population ratio, 15+, total (%) (national estimate) - West Bank and Gaza". data.worldbank.org. World Bank. Retrieved 5 November 2019.
  14. ^ "Unemployment Rate Hits 27.5% in First Quarter of 2013". Archived from the original on 19 June 2013.
  15. ^ a b "PCBS: On the 65th Anniversary of the Palestinian Nakba".
  16. ^ a b "Where does Palestine export to?". The Observatory of Economic Complexity. Retrieved 3 August 2024.
  17. ^ "New Palestinian Government Holds Its First Meeting". Archived from the original on 10 June 2015.
  18. ^ a b "Abbas Approves 2012 Budget – Wafa.ps". Archived from the original on 6 May 2014.
  19. ^ "Time Series Data on International Reserves and Foreign Currency Liquidity. Official Reserve Assets" (PDF). Retrieved 31 October 2019.
  20. ^ "International Reserves and Foreign Currency Liquidity - WEST BANK AND GAZA". Imf.org. Retrieved 31 October 2019.
  21. ^ "CIA World Fact Book – Gaza's Economy". Retrieved 12 June 2014.
  22. ^ "CIA World Fact Book – West Bank's Economy". Retrieved 12 June 2014.
  23. ^ a b c "Economic Outlook". www.pipa.ps. Retrieved 2 June 2024.
  24. ^ "Palestine* - European Commission". civil-protection-humanitarian-aid.ec.europa.eu. 29 January 2024. Retrieved 27 February 2024.
  25. ^ "Political Economy of Foreign Aid in the Occupied Palestinian Territories: A Conceptual Framing – Peace Research Institute Oslo (PRIO)". www.prio.org. Retrieved 10 March 2024.
  26. ^ "Palestinian Expatriates". This Week in Palestine. Retrieved 27 February 2024.
  27. ^ Labadi, Taher (5 December 2018). "The Palestinian Diaspora and the State-Building Process". Arab Reform Initiative.
  28. ^ Dept, International Monetary Fund Middle East and Central Asia (13 September 2023). "West Bank and Gaza: Selected Issues". IMF Staff Country Reports. 2023 (327). doi:10.5089/9798400253843.002.A001 (inactive 2 November 2024).{{cite journal}}: CS1 maint: DOI inactive as of November 2024 (link)
  29. ^ admin2 (28 September 2022). "Tourism in Palestine in figures". middleeast-business.com. Retrieved 28 February 2024.{{cite web}}: CS1 maint: numeric names: authors list (link)
  30. ^ Bukhari, Allia. "How Israel damages Palestine's economy by limiting tourism in Jerusalem". How Israel damages Palestine's economy by limiting tourism in Jerusalem. Retrieved 28 February 2024.
  31. ^ "Hebron, the wealthiest, most high-tech Palestinian Authority City". the Jewish Community of Hebron. Retrieved 28 February 2024.
  32. ^ "Could Ramallah become an Arab World tech hub?". BBC News. 6 June 2014. Retrieved 28 February 2024.