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ECONOMY
Major Economic Sectors
Numerous
economic and development projects (public and private) have
been recently initiated in Palestine. The public sector has
grown by 30% in the past 5years, while the private sector had
growth rate of exceed of 60% in the same period. The
establishments within this sector operate a total of 56% in
trade enterprises, 20% in manufacturing, including bakeries,
tailors and blacksmiths. The remaining establishments include
hotels, restaurants, transportation, education, health,
construction, social work and personal services.
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Industry
The
level of industrialization in Palestine is dramatically
improving due to the PNA’s investment incentive
policies and the private sector’s initiatives. The
sector is comprised mainly of light and medium
manufacturing facilities. The shared of industry at GDP
growth from 8% to17% and the expected GDP growth in
terms of IE/FZ will be up 35%. When the IE/FZ program is
fully operated by the 2007. |
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Agriculture
As
a major component of the economy, there is great
potential for the development of the agricultural
sector. By using of technology for the cultivation of
crop ranges from highly traditional rain fed agriculture
to modern drip irrigation. There are local and regional
demands for products from the agricultural sector. Thus,
investment in this sector is crucial to meet these
demands.
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Processing
of agricultural products is one of the major components
of the Palestinian agricultural industry. The demand for
dairy products alone is estimated at 150,000 tons/year
with an annual expected increase of 5%. Current dairy
production covers only 47% of needs. Market demand is
also higher than production capacities in other food
processing and agricultural industries such as the
production and maintenance of agricultural tools and
equipment and the processing of olive oil, which
constitute 20% of agricultural revenues covering over
50% of the cultivated area in the West Bank. |
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Fish Industry
Gaza
boats a thriving fishing industry. This includes
sardines, mullet, goldfish, flounders and shrimps, as
well as deep-water fish such as sea bass. The production
capacity of Gaza’s fisheries is high and comparable
with those of Israel and Egypt. |
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Banking and Finance
The
banking sector has flourished a great deal in Palestine,
particularly since 1993. Many new foreign and local
banks have opened and banks have been restructured. A
Palestinian policy for banking and finance has been
refined, safeguarding local and international investors
against all forms of price manipulation. In addition,
improvements of services and market efficiency have been
accomplished through the development of new systems,
procedures and instruments, as well as the transfer of
technological innovations. |
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The PNA has created the Palestine Securities Exchange (PSE) to
act as the foundation of the Palestinian capital markets and
its center of activities .it complements and supports the
economic development of Palestine and facilitates the
repatriation of long-term investment capital to the economy. |
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Tourism and Services
Creating
the necessary infrastructure for tourism in Palestine has been
generating thousands of additional jobs. The tourist industry
is also generating large sums of foreign exchange, improving
the international reputation of the Palestinian business
community, and exposes millions of people to other business
opportunities in the region.
Regional
co-operation in this sector proves to be the key to providing
increased sources of foreign currency, and setting the |
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for a growing number of regional joint ventures. Potential
growth in the development of tourism is significant; Estimates
predict that the Palestinian tourist industry can expect to
receive between 500,000 and one million tourists per annum,
thus generating an income of around US$250-300 million for the
sector. |
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Trade
Palestinian
Customs Authority is administering the movement of goods at
the overland crossings with Egypt and Jordan. Regular and
competitive direct export is an aspiration of Palestinian
businesses and is evolving rapidly.
Palestinian
products qualified for export include:
Agricultural
Industries and Supplies
Building
Materials
Electrical
appliances and household goods
Food
and beverages
Furniture,
woodwork, office equipment and accessories
Garments,
textiles, footwear and leather works
Handicraft
and souvenirs
Metal
products, industrial equipment and tools
Pharmaceuticals,
cosmetics and medical products
Plastics
and chemical products
Printing,
paper and packaging products. |
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Palestine
is now gearing itself to play a major role in the information
Technology market. A high profile IT Park (KITE) will be
established in Khadoury that will attract international and
regional IT Firms.
The
main Palestinian imports include non-metallic mineral
products, petroleum products, road vehicles, electrical
appliances, iron and steel. |
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Plastics
and chemical products
Printing, paper and packaging products.
Palestine is now gearing itself to play a major role in the
Information Technology market. A high profile IT park (KITE)
will be established in Khadoury that will attract
international and regional IT firms.
Palestinian main imports include non-metallic mineral
products, petroleum products, road vehicles, electrical
appliances, iron and steel. |
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Composition
of GDP & Recent Growth Trends
In 1999,
the employment trends and the prospect for GDP growth were
positive. The GDP’s general traits were categorized as
follows:
| General
Features |
| GDP (million US$,
current prices, 1997) |
4,173.1 |
| GDP per capita (US$,
1997) |
1,763 |
| Real GDP Growth (1998) |
2.5%
(1997: 1.0%) |
| GDP Sector
Shares: (1997) |
Industry |
Agriculture |
Construction |
Services |
| 17.6% |
6.4% |
8.9% |
67.2% |
| 9.7% |
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- |
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| Average inflation (1998) |
- |
| Source:
PCBS |
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