OPT socio-economic report (April 2011) - UNSCO

SOCIO-ECONOMIC REPORT

April 2011

Since 1996 UNSCO has continually monitored and reported on socio-economic conditions in the occupied Palestinian territory (oPt) and, in the process, established an extensive socio-economic database. UNSCO does not produce primary data but rather makes use of available data, that in oPt are relatively abundant. The information that is available, however, often remains dispersed and is not automatically shared between institutions. The objective of the database is to collate a wide range of social and economic indicators in one location, and, through the report, present a broad perspective on socio-economic conditions in oPt.

The purpose of the present report is to: 1) broaden the access to the information contained in the database through publication of the most recent data gathered; and 2) provide readers with up-to-date information on socio-economic conditions in the occupied Palestinian territory.

The report is divided into seven sections, as follows:

Section I. consists of a one-page fact sheet that provides a snapshot view of the socio-economic situation for the current and previous reporting periods.

Sections II. and III. report on the macro-economic and fiscal situation, and sections IV. and V. give an overview of developments in the banking and private sectors, respectively. Section VI. deals with trade, and Section VII. is dedicated to issues on Gaza.

Two annexes provide detailed reference information. Annex A presents detailed statistical reference tables, and Annex B lists the main socioeconomic terms used in this report along with their corresponding definitions.

Topics of current interest are analyzed in-depth in periodic “Supplements”.

Most sections provide data on the six preceding reporting periods for each indicator and, for comparison purposes, data for a reference period immediately before the Al-Aqsa intifada, which started in September 2000, or the closest time period available.

Note: The data for the West Bank and oPt in this report do not include occupied East Jerusalem unless otherwise specified.

UNSCO

Office of the United Nations Special Coordinator for the Middle East Peace Process

For further information or to be added to the mailing list please contact:

UNSCO Ramallah:

Astrid Marschatz marschatz@un.org

UNSCO Gaza Strip:

Raed Raqeb raqeb@un.org

The UNSCO Socio-Economic Report is also

accessible on www.unsco.org

I. Socio-Economic Fact Sheet April 2011

a/ Data not available.

b/ Preliminary data.

c/ Includes data for occupied East Jerusalem.

d/ MoNE data for August 2000 do not include aggregates or aid flows.

Sources: PCBS: production, prices, labor market; MoF: public sector; PMA: banking sector; MoNE: new company registrations; Engineering Offices and Consulting Firms: area licensed for new construction; MoNE and General Petroleum Corporation: Gaza truck movement; UNSCO: closure and Gaza truck movement.

II. MACRO-ECONOMIC SITUATION

II.a Production

Real GDP grew by 2.8% in Q4/2010, yielding an annual growth rate of 9.3%. This recent economic growth was experienced only in the West Bank, where real GDP was 5.5% higher in Q4 than in Q3. In the Gaza Strip, on the other hand, real GDP fell by 5.2% during the quarter, ending a period of expansion that lasted for seven quarters. Despite higher annual growth in Gaza than in the West Bank (15.1% compared to 7.6%), quarterly GDP in Gaza continues to be less than a third the GDP in the West Bank.

Real GDP ($US million)

Source: PCBS.

Note: Base Year is 2004.

Agriculture in oPt
Agriculture was the most dynamic sector of the economy in 2010, expanding by 36%. Its estimated real value added reached US$360 million, equivalent to 6% of GDP. Its contribution to the total economy was greater in Gaza, 9%, than in the West Bank, 5%. In terms of employment, agriculture absorbed 12% of those working in 2010. This sector was a more important source of employment in the West Bank, where 14% of workers were employed in agriculture, than in Gaza, where this sector offered employment to 8% of workers. Women also depend more on agriculture for employment, as 21% of working women were active in this sector, compared to only 9% of working men.
Preliminary results of PCBS‟s 2010 Agriculture Census identify 111,458 agricultural holdings in oPt, of which 91,028 were in the West Bank and 20,430 were in the Gaza Strip. Hebron, Ramallah and Al-Bireh, Nablus, Tulkarm and Jenin had the highest number of agricultural holdings. A total of 960,321 dunums were cultivated in 2010, that is, 16% of the territory. The same proportion (16%) of land was cultivated in the West Bank, but with marked differences between governorates. Tulkarm had the highest proportion of land area that is cultivated, 34%, followed by Qalqilya with 33% and Jenin with 30%. At the other extreme, less than 5% of land area was cultivated in Jerusalem, Jericho and Bethlehem. In Gaza, 21% of the land area was cultivated, but the differentials between governorates were smaller than in the West Bank. In particular, Deir Al-Balah had the highest proportion, 25%, and Gaza the lowest, 16%.	Number of agricultural holdings and land area that is cultivated 2010 Note: The boundaries and the names shown and the designations used on the map do not imply official endorsement or acceptance by the UN.
Source: PCBS, Preliminary Estimates of Quarterly National Accounts, Labor Force Survey Annual Report 2010, 2010 Agriculture Census. Note: For the data on GDP and labor, agriculture includes hunting and fishing.



Change in Production in Industrial Activities According to IPI
Source: PCBS.	The Industrial Production Index (IPI), used to gauge short term changes in productive activity, increased by 5.9% in March 2011. This rise in productive activity is traced to the water supply and electricity industry (whose relative share is 14.9%) and the manufacturing industry (with 80.5% relative share). The mining and quarrying industry (4.6% relative share), on the other hand, registered a decrease during the month according to the IPI.
II.b Prices	Consumer Price Index (2004 = 100)
The Consumer Price Index (CPI), used to measure inflation, reflects almost no change in prices in April 2011 compared to the previous month, but an inflation rate of 3.5% in the year since April 2010. Year-on-year inflation was highest in East Jerusalem (5.3%), followed by the West Bank (3.9%). The greatest price rises in April 2010 were in restaurants, cafes and hotels, and textiles, clothing and footwear. The largest price decreases were in medical care, and food and soft drinks.	Source: PCBS.
The rise in CPI in the West Bank in April is traced mainly to increases in the price of restaurants, cafes and hotels, furniture and household goods, and miscellaneous
Change in Consumer Price Index by Major Expenditure Groups April 2011 Source: PCBS.	goods and services. The cost of food and soft drinks fell in the West Bank during the month. In East Jerusalem the CPI was basically unchanged in April, although the price of textiles, clothing and footwear rose considerably, followed by restaurants, cafes and hotels. The costs of medical care, furniture and household goods, and restaurants, cafes and hotels registered the biggest drops in East Jerusalem in April.

In the Gaza Strip the CPI declined by 0.6% during the month of April. The most significant decreases in prices in Gaza during the month were in food and soft drinks, and furniture and household goods. Recreational, cultural goods and services exhibited the greatest price increase during the month, followed by communications.

The decomposition of the CPI into indices for food and non-food items reveals a greater increase in the cost of food items in the last twelve months (3.8%) than in non-food items (3.2%). In addition, the price of food items shows higher levels of instability, with greater month-to-month fluctuations, than the price of non-food items.

OPT socio-economic report (April 2011) – UNSCO

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