The Portland Trust Palestinian Economic Bulletin
The Portland Trust is publishing a monthly bulletin with the Palestinian Economic Policy Research Institute (MAS) on the Palestinian economy. The monthly bulletin covers the latest economic developments affecting the West Bank and Gaza Strip (WBGS) and includes key indicators such as unemployment figures, new business starts, consumer prices, and statistics indicating the vigour of banks operating in the WBGS. Long-term trends, such as demographic statistics or changes in public sector employment, will also be covered when relevant. The bulletin will report major events affecting the economic and business environment of the WBGS, such as mergers and acquisitions, bankruptcies, changes in business law, changes in company leadership, and political developments. The bulletin will present an analysis of the economic indicators and news, and will focus on their implications for business and for the Palestinian economy.
Issue 5 - February 2007 
Main reports:
The preliminary 2007 draft budget has been rejected by the PLC Parliamentary Budget Committee. At almost $2.6 billion, it is the largest budget ever proposed by the PNA.
The election of a Hamas government changed international aid patterns in 2006. Increasing financial support from the Arab states constituted a considerable portion of international aid. Most of the money was channelled through the Office of the President.
Turkish and Palestinian officials signed a MOU to revitalise, develop and manage the Palestinian Industrial Free Zone at Beit Hanoun in Gaza. Officials hope that the zone will support 10,000 jobs.
The first conference of the Palestinian Shippers Council took place in January. Conference speakers stressed they cannot be competitive unless transaction costs, especially those associated with transportation, fall. Read more
Issue 4 - January 2007
Main reports:
The Agreement on
Movement and Access
signed a year ago has failed
to live up to its aims,
according to a UN review.
Twelve UN aid agencies
active in the Palestinian
Territories launched a
combined appeal for
$453.6m worth of
emergency humanitarian
assistance to meet their
2007 budget needs.
Businessmen in the West
Bank remain gloomy about
their prospects, according
to the latest survey by the
PCBS. Gazan businessmen,
however, remained relatively
optimistic.
After several months of
decline, prices of certain
consumer goods, especially
food, rose in November. The
price of housing, however,
continued to fall.
The Board of Directors of the Capital Market Authority announced that
licensed investment funds will soon be introduced to the Palestinian Stock
Market. Read more
Issue 3 - December 2006
Main reports:
Overall unemployment rates
rose from 22.9% to 24.2%
in the third quarter of 2006.
Joblessness rose most in the
Gaza Strip (36.3%
unemployed) compared
with the West Bank (19.1%
unemployed).
The number of issued
building licenses fell by
35.8% in the third quarter, suggesting that the
construction industry will
continue to contract.
Mounting costs led to a
sharp reduction in the
added value of the
agricultural sector in 2005.
The consumer price index
declined for the second
month in a row, falling by
-0.42% in October. The fall
can be linked to deflation in
the Gaza Strip and East
Jerusalem.
The number of guest nights
at Palestinian hotels
declined 9.2% in the third
quarter compared with the
same period in 2005. Read more
Issue 2 - November 2006
Main reports:
The IMF reported that
public funds had shrunk to
around US $500m between
April and September this
year, compared to more
than $1.2bn in the same
period last year.
The Karni crossing point
between Gaza and Israel
was open for most of September; the number of
checkpoints across the
Palestinian territories rose.
PNA indebtedness to local
banks has been cut back
significantly in recent
months. Cash from the
Palestinian Investment Fund
was used to work down the
position, while the banks
also offset their tax own
liabilities and withheld tax
revenues from the PNA.
Consumer prices fell in
September for the second
time this year; The World
Bank issued a report
highlighting the export
potential of Palestinian
olives. Read more
Issue 1 - October 2006
Main reports:
Second quarter national
accounts show a GDP decline
of a modest 1.7% compared
with the previous quarter and
an increase of 1.7% compared
with the same quarter in 2005.
There was a sharp upturn in
business confidence in Gaza in
August, although the business
community remained cautiously
negative in the West Bank.
Second jobs and financial
assistance from the private
sector and abroad were among
the support mechanisms used
by public sector employees to
cope with the shortfall in salary
payments.
The job market was little
changed through the summer;
building licence pplications
saw a seasonal rise; tourism
was up before the outbreak of
the war in Lebanon.
The first phase of an electrical
link between Egypt and
the Gaza Strip was
announced; Kuwaiti Wataniya
Telecommunications won the
second cellular phone licence. Read more
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