The Palestinian economy refers to the economy of the Palestinian territories, including the West Bank, East Jerusalem and the Gaza strip. Recent geopolitical events have severely damaged the economy of the territories. In September 2000, the Second Intifada began. The increased violence and Israeli checkpoint closures associated with the conflict caused a recession in 2001-02. The World Bank compared this recession to the Great Depression of 1929 [1]. In 2006, Hamas won legislative control of the Palestinian Authority (PA), triggering a halt in international aid from countries labelling it a terrorist organization, including the United States, members of the European Union, and Israel.^{[citation needed]} This article is about the Palestinian territories as a geopolitical phenomenon. ... East Jerusalem is that part of Jerusalem which was held by Jordan from the 1948 Arab-Israeli War until the Six-Day War in 1967. ... The al-Aqsa Intifada is the wave of violence and political conflict that began in September 2000 between Palestinian Arabs and Israelis; it is also called the Second Intifada (see also First Intifada). ... The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... Hamas (Arabic: ; acronym: Arabic: , or Harakat al-Muqawama al-Islamiyya or Islamic Resistance Movement; the Arabic acronym means zeal) is a Palestinian Islamist organization that currently (since January 2006) forms the majority party of the Palestinian National Authority. ... The West Bank The Palestinian National Authority (PNA or PA) is a semi-autonomous state institution nominally governing the bulk of the West Bank and the Gaza Strip (which it calls the Palestinian Territories). It was established as a part of Oslo accords between the PLO and Israel. ... ...

As of December 2006, unemployment has risen from 23% in 2005^[1] to over 50%. Two-thirds of Palestinians are living below the poverty line. In the last four months, approximately 10,000 have emigrated from the territories, and approximately 50,000 have applied to do so. For the past nine months, the 160,000 civil service workers, who are the primary breadwinners for a third of households, have not received their full salaries due to the cuts in foreign aid.^[2] Map of countries showing percentage of population who have an income below the national poverty line The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ...

Economy of the West Bank

Economic conditions in the West Bank - where economic activity is governed by the Paris Economic Protocol of April 1994 between Israel and the Palestinian Authority - have deteriorated since the early 1990s. Real per capita GDP for the West Bank and Gaza Strip (WBGS) declined 36.1% between 1992 and 1996 owing to the combined effect of falling aggregate incomes and robust population growth. The downturn in economic activity was due to extensive corruption in the newly governing Palestinian Authority, and to 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. In October 1999, Israel permitted the opening of a safe passage between the West Bank and the Gaza Strip in accordance with the 1995 Interim Agreement. These changes in the conduct of economic activity have fueled a moderate economic recovery in 1998-99. Image File history File links Current_event_marker. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Information_icon. ...

GDP: purchasing power parity - $3.3 billion (1999 est.)

GDP - real growth rate: 4.6% (1999 est.)

GDP - per capita: purchasing power parity - $2,050 (1999 est.)

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

Inflation rate (consumer prices): 5% (includes Gaza Strip) (1999 est.)

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

Unemployment rate: 14.5% (includes Gaza Strip) (1998 est.)

Budget:
revenues: $1.6 billion
expenditures: $1.73 billion, including capital expenditures of $NA (includes Gaza Strip) (1999 est.)

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 Nabulus and Janin, generate their own electricity from small power plants Nablus (Arabic نابلس; Hebrew שכם, Shechem) is a major city (pop. ...

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

Exports: $682 million (includes Gaza Strip) (f.o.b., 1998 est.)

Exports - commodities: olives, fruit, vegetables, limestone

Exports - partners: Israel, Jordan, Gaza Strip

Imports: $2.5 billion (includes Gaza Strip) (c.i.f., 1998 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 pledged (includes Gaza Strip) (1999)

Currency: 1 new Israeli shekel (NIS) = 100 new agorot; 1 Jordanian dinar (JD) = 1,000 fils

Exchange rates: new Israeli shekels (NIS) per US$1 - 4.2260 (November 1999), 3.8001 (1998), 3.4494 (1997), 3.1917 (1996), 3.0113 (1995); Jordanian dinars (JD) per US$1 - fixed rate of 0.7090 (from 1996), 0.7005 (1995)

Fiscal year: calendar year (since 1 January 1992) the palestinians are eshays

History of the Palestinian economy

Figure 1: Real Annual GDP Growth, West Bank. Source: CIA World Factbook

In 2005, the PNA Ministry of Finance cited "the construction of the separation wall", started in the second half of 2002, as one reason for the depressed Palestinian economic activity.[2] Real GDP growth in the West Bank declined substantially in 2000, 2001, and 2002, and increased modestly in 2003 and 2004 (see Figure 1); about a third of the barrier had been completed by late 2005 [3]. The World Bank attributes the modest economic growth since 2003 to "diminished levels of violence, fewer curfews, and more predictable (albeit still intense) closures, as well as adaptation by Palestinian business to the contours of a constrained West Bank economy". Under a "disengagement scenario" the Bank predicts a real growth rate of -0.2% in 2006 and -0.6% in 2007. (The World Bank Group West Bank and Gaza Update, November 2005, p. 9) Image File history File links WestBankGDP2. ... Image File history File links WestBankGDP2. ... The barrier route as of May 2005. ...

Post-disengagement Gaza has been beset by bread shortages and severe shortages of basic humanitarian supplies caused by ongoing closures of the al Mentar/Qarni (Arabic/Hebrew) border-crossing into Israel, though Israel's offer to open other crossings in its place has been refused by the Hamas-run Palestinian authority.^[3] Israels unilateral disengagement plan (termed in Hebrew: תוכנית ההתנתקות Tokhnit HaHitnatkut or תכנית ההינתקות Tokhnit HaHinatkut in the Disengagement Plan Implementation Law), also known as the disengagement plan, Gaza Pull-Out plan, and Hitnatkut) was a proposal by Israeli Prime Minister Ariel Sharon, adopted by the government and enacted in August 2005, to...

January 2006 legislative elections aftermath

See main article Palestinian legislative election, 2006#Aftermaths Wikinews has news related to this article: Hamas wins Palestinian election On January 25, 2006, elections were held for the Palestinian Legislative Council (PLC), the legislature of the Palestinian National Authority (PNA). ...

Following the January 2006 legislative elections, won by Hamas, the Quartet (apart from Russia) cut all funds to the Palestinian Authority led by prime minister Ismail Haniyah (Hamas). "The Palestinian Authority has a monthly cash deficit of some $60 million to $70 million after it receives between $50 million and $55 million a month from Israel in taxes and customs duties collected by Israeli officials at the borders but owed to the Palestinians." Beginning March 2006, "the Palestinian Authority will face a cash deficit of at least $110 million a month, or more than $1 billion a year, which it needs to pay full salaries to its 140,000 employees, who are the breadwinners for at least one-third of the Palestinian population. The employment figure includes some 58,000 members of the security forces, most of which are affiliated with the defeated Fatah movement." Since the January 25 elections, "the Palestinian stock market has already fallen about 20 percent", while the "Authority has exhausted its borrowing capacity with local banks." ^[4] Israel has ceased transferring the $55 million tax-receipts to the PA — since the PA has no access point (ports, airports, etc.) to perceive taxes, it is Israel that is charged with this duty. These funds accounted for a third of the PA's budget, two thirds of its proper budget, and insure the wages of 160 000 Palestinian civil servants (among them 60 000 security and police officers), on which a third of the Palestinian population is dependent. Israel has also decided to increase controls on check-point, which has been since the beginning of the Second Intifada a main cause of the 2001-2002 economic recession, which the World Bank has compared to the 1929 economic crisis. Furthermore, the US and the EU have stopped direct aid to the PA, while the US imposed a financial blockade on PA's banks, impeding some of the Arab League's funds (e.g. Saudi Arabia and Qatar) from being transferred to the PA.^[5] On May 6 and 7, 2006, hundreds of Palestinians demonstrated in Gaza and the West Bank demanding payment of their wages. Tension between Hamas and Fatah has been slowly risen with the "economic squeeze" on the PA.^[6] The World Bank had already compared the 2001 and 2002 economic recession, due to the Second Intifada and Israel's refusal to transfer tax receipts, to the 1929 economic crisis. The UN institution underlines that unemployment, which was estimated to 23% in 2005, would increase to 39% in 2006, while poverty, estimated at 44%, would increase to 67% in 2006.^[5] Wikinews has news related to this article: Hamas wins Palestinian election On January 25, 2006, elections were held for the Palestinian Legislative Council (PLC), the legislature of the Palestinian National Authority (PNA). ... Hamas (Arabic: ; acronym: Arabic: , or Harakat al-Muqawama al-Islamiyya or Islamic Resistance Movement; the Arabic acronym means zeal) is a Palestinian Islamist organization that currently (since January 2006) forms the majority party of the Palestinian National Authority. ... The Quartet on the Middle East, sometimes called the Diplomatic Quartet or simply the Quartet, is a foursome of nations and international entities involved in mediating the peace process between Israel and the Palestinian People. ... The West Bank The Palestinian National Authority (PNA or PA) is a semi-autonomous state institution nominally governing the bulk of the West Bank and the Gaza Strip (which it calls the Palestinian Territories). It was established as a part of Oslo accords between the PLO and Israel. ... The Prime Minister of the Palestinian National Authority is the head of government of the Palestinian government. ... Ismail Haniya (more frequently Haniyeh) (born 1962) (Arabic: إسماعيل هنية) is the Prime Minister of the Palestinian National Authority. ... Fatah (Arabic: ); a reverse acronym from the Arabic name Harakat al-Tahrir al-Watani al-Filastini (literally: Palestinian National Liberation Movement) is a major secular Palestinian political party and the largest organization in the Palestine Liberation Organization (PLO), a generally secular multi-party confederation. ... The al-Aqsa Intifada is the wave of violence and political conflict that began in September 2000 between Palestinian Arabs and Israelis; it is also called the Second Intifada (see also First Intifada). ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... The Arab League or League of Arab States (Arabic: ‎), is an organization of predominantly Arab states (compare Arab world). ... Fatah (Arabic: ); a reverse acronym from the Arabic name Harakat al-Tahrir al-Watani al-Filastini (literally: Palestinian National Liberation Movement) is a major secular Palestinian political party and the largest organization in the Palestine Liberation Organization (PLO), a generally secular multi-party confederation. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... The Great Depression was a time of economic down turn, which started after the stock market crash on October 29, 1929, known as Black Tuesday. ... The foundation of the U.N. The United Nations (UN) is an international organization whose stated aims are to facilitate co-operation in international law, international security, economic development, social progress and human rights issues. ... This article or section does not cite any references or sources. ... A boy from an East Cipinang trash dump slum in Jakarta, Indonesia shows what he found. ...

Statistics (West Bank & Gaza strip)

GDP: purchasing power $2.468 billion (2003 est.)

GDP - real growth rate: -22% in the West Bank, 4.5% in the Gaza Strip (2003 est.)

GDP - per capita: purchasing power parity - $800 in the West Bank (2002 est.) $600 in the Gaza Strip (2003 est.)

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

Population below poverty line: 60% (2003 est.)

Inflation rate (consumer prices): 2.2%

Labour force by occupation: agriculture: 13%, industry 21%, services 66% (1996)

Unemployment rate: 60% (2003 est.)

Budget: revenues: $676.6 million expenditures: $1.155 billion, including capital expenditures of NA (2003 est.)

Agricultural 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 industrial centers

Electricity supplied by Israel (2001)

Exports: $603 million f.o.b.

Export commodities: citrus, flowers

Export partners: Israel, Egypt

Imports: $1.9 billion c.i.f.

Import partners: Israel, Egypt

Debt - external: $108 million (1997)

Economic aid - recipient: $2.8 billion (2001 est.)

Currency: new Israeli shekel (ILS - West Bank & Gaza Strip); Jordanian dinar (JOD - West Bank)

Currency code: ILS; JOD

Exchange rates: new Israeli shekels per US dollar - 4.5541 (2003), 4.7378 (2002), 4.2057 (2001), 4.0773 (2000), 4.1397 (1999); Jordanian dinars per US dollar - fixed rate of 0.7090 (from 1996)

Fiscal year: calendar year (since 1 January 1992)

References

Le Monde is also the name of a song by the Thievery Corporation. ... For the Manfred Mann album, see 2006 (album). ... June 5 is the 156th day of the year in the Gregorian calendar (157th in leap years), with 209 days remaining. ... Le Monde is also the name of a song by the Thievery Corporation. ... The current BBC News logo BBC News and Current Affairs is a major arm of the BBC responsible for the corporations newsgathering and production of news programmes on BBC television, radio and online. ...

See also

• Demographics of Palestine
• Palestine
• Palestinian National Authority
• Israeli-Palestinian conflict