Main information about Palestine
| Country name | The State of Palestine |
|---|---|
| The capital | Jerusalem |
| Continent: | Asia |
| Area | 6,220 km22 |
| Population (2022) | 5.4 million |
| The main language (official) | Arabic |
| Currency | Shekel |
United Nations Conference on Trade and Development (UNCTAD)
| Economic indicators (2022) | Palestine
USD |
|---|---|
| GDP (billion) | 19.1 |
| Growth in GDP (%) | 3.6 |
| GDP per capita (thousand) | 3,045 |
| Unemployment rate (%) | 24.5 |
| Inflation rate (%) | 3.7 |
| Labor force ( thousand ) | 0.94 |
| Export (billion) | 0.16 |
| Import( billion) | 0.16 |
| Trade balance (billion) | -1.4 |
| Budget deficit as % of GDP (%) | 3.6 |
| Public debt as % of GDP (%) | 18.5 |
Source: United Nations Conference on Trade and Development (UNCTAD)
The economy in the Palestinian Territory refers to the economy of PA-administered territories in the West Bank and Gaza Strip, an economy largely governed by the Israeli economy and Israeli policies. The Palestinian Authority's economy is characterized by its high dependence on foreign aid, Finance from the Arab States, the European Union and the United States of America. This economy is characterized by a high percentage of workers in Israel and abroad.
Agriculture is the mainstay of the Palestinian economy According to the Council of European-Palestinian Relations; the agricultural sector officially employs 13.4% of the population. Agriculture accounts for 90% of the population informally. The cultivated area is 183,000 hectares, half of which is used for olive production in Palestine. Olive products account for the lion's share of export income from any other agricultural crop.
During the year 2022, the Palestinian economy succeeded in achieving growth of about 3.6%, compared to a growth of 7.0% during the year 2021, despite the many complex crises that it suffered, most notably the almost complete cessation of external support provided to the State of Palestine and allocated to support the budget, and the continuation of cuts. Israeli tax revenues (clearance) throughout the year, and most economic activities witnessed an increase in their added value during the year 2022, as industrial activity recorded the highest growth rate of about 6.3%, followed by services activity by 2.9%, then construction activity by 2.3%, while Agriculture activity witnessed a decline of 2.6%.
The year 2022 also witnessed continued recovery in the labor market, as the total number of workers increased by 7.6% compared to 2021. Despite the increase in the number of workers, the relative improvement in the level of economic activity contributed to reducing the unemployment rate during the year 2022 to 24.5%. Compared to 26.4% in 2021, 20.3% among males, compared to 40.4% among females. The highest unemployment rate was concentrated among youth in the age group of 15-24 years for both genders. The percentage reached 36.1%, 31.9% for males and 57.0% for females. The unemployment rate in the West Bank reached 13.1%, while the unemployment rate in the Gaza Strip reached 45.3%.
The latest data indicate that 36% of the Palestinian population lives below the poverty line, according to figures from the United Nations Conference on Trade and Development (UNCTAD), which warned of deepening poverty in the occupied Palestinian territories, in addition to the fact that the level of food insecurity rose from 9% to 23%. % in the West Bank, and from 50% to 53% in Gaza, as a result of the occupation’s role in fragmenting the Palestinian economy and depriving its producers of access to regional and global markets.
| Year | Foreign Direct Investment million USD |
|---|---|
| 2020 | 80 |
| 2021 | 353 |
| 2022 | 233 |
Source: United Nations Conference on Trade and Development (UNCTAD)
Due to the tense political and security situation of the territory, Palestine attracts scarce FDI beyond aid from the E.U., the U.S., and Arab countries. However, Palestine has a market economy in which the private sector plays an important role. Its strategic location and need for the development of large-scale infrastructure make Palestine a largely unexploited market with great investment Foreign direct investment flows to Palestine amounted to 233 million US dollars in 2022, down from 353 million US dollars in 2021. The total balance of foreign investment in Palestine at the end of the fourth quarter of 2022 amounted to 6,100 million US dollars, distributed among foreign investment Direct investments by 51%, portfolio investments by 14%, and other investments by about 35%. At the sectoral level, foreign investments in the banking sector constituted about 35% of the total foreign liabilities on the Palestinian economy.” incoming to Palestine focuses on telecommunications, real estate, and financial services.
Historically, Qatar has been the main investor in the area followed by Jordan. In order to attract foreign investment, the Government has established a regulatory framework favorable to investors. Following the principle of non-discrimination, all benefits guaranteed by law are offered to both local and foreign investors, including protection against expropriation, guarantees for repatriation, tax incentives and exemptions.
International trade between Palestine and Jordan (2020-2021)
| Year | Total trade | Trade balance |
Imports million USD |
Exports million USD |
|---|---|---|---|---|
| 2020 | 57.1 | 173.6 | 230.7 | -116.5 |
| 2021 | 69.6 | 257 | 326.6 | 187.4- |
Source: Department of Statistics
| The most critical Palestinian imports from Jordan 2021 |
Import Value million USD |
|---|---|
| Cocoa | 2.1 |
| Preparations of cereals, flour | 9.7 |
| Preparations of vegetables, fruit, nuts or other parts of plants | 3 |
| Sugars | 0.6 |
Source: Department of Statistics
| The most critical Palestinian exports to Jordan 2021 |
Export Value million USD |
|---|---|
| Meat | 131 |
| Edible vegetables | 761 |
| Edible fruit and nuts | 142.1 |
| Products of the milling industry | 1.2 |
Source: Department of Statistics
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