National Accounts, Growth and Inflation
Despite the particularly unstable situation in the Gaza Strip, the Palestinian economy achieved positive growth, reaching 6.8% in 2009. Furthermore, there was a corresponding increase in GDP per capita, which reached around US$1,390 at the end of 2009. The GDP per capita however remains at 84.7% of 1999 levels when it reached a high of US$1,640 (see Table I).
Table 1: Economic Growth at Constant Prices, Selected Years
| 1995 | 2000 | 2005 | 2006 | 2007 | 2008 | 2009 | |
|---|---|---|---|---|---|---|---|
| GDP (US $m) | 3,193.2 | 4,118.50 | 4,559.50 | 4,322.30 | 4,554.10 | 4,820.90 | 5,147.20 |
| Growth rate (%) | 6.0 | 8.7 | 8.6 | 5.2 | 5.4 | 5.9 | 6.8 |
| GDP Per Capita ($) | 1,388.20 | 1,450.20 | 1,387.20 | 1,275.40 | 1,303.20 | 1,340.40 | 1,389.90 |
| GDP Per Capita Growth Rate(%) | (1.3) | (11.6) | 5.3 | (8.1) | 2.2 | 2.9 | 3.7 |
Source: MAS (2010) Observer of the Economic and Social Council, No.20, Ramallah, Palestine.
* The base year is 1997 (1997 = 100).
** Figures are preliminary and subject to revision
The level of inflation in the Palestinian territories is moderate. In 2010, the rate of inflation was only 1.2%, down from 2.8% in 2009. During the period between 2004 and 2008, the annual rate of inflation reached 4.4%. Price levels have risen, and remain high, because of the global food crises and the rising costs of energy. Despite this, the level of inflation in the West Bank and Gaza Strip remains acceptable.
GDP Contribution by Sector in 2009
| Economic Activity | Percentage Contribution to GDP |
|---|---|
| Agriculture and Fishing | 8.1 |
| Metal, Water and Electricity | 14.6 |
| Construction | 7.4 |
| Trade, Retail and Wholesale | 10.7 |
| Transportation | 8.7 |
| Financial Mediation | 5.5 |
| Hotels and Restaurants | 1.3 |
| Education, Health and Social Work | 11.7 |
| Public Administration and Defence | 14.5 |
| Other Services | 17.5 |
| Total | 100 |
Source: PCBS (2009) National Accounts
