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Decline in GDP and GDP per capita during 2014; the unemployment rate was 27.0%

2014-12-30

Decline in the Gross Domestic Product (GDP)

Preliminary estimates indicated a decrease in GDP in Palestine by 2.5% during 2014 compared with 2013; GDP per capita has decreased by more than 5% during 2014 compared with 2013. The decrease in 2014 was concentrated in the major economic activities that are the biggest contributors to GDP: the agriculture activity, construction activity, services and other items activity and industrial activity.  Preliminary estimates showed that the highest decrease was in construction, which decreased of around 10% despite an increase of around 3% in the number of employed persons in this activity.  The agricultural activity decreased by more than 7% during 2014 compared with 2013 and the number of employed persons in this activity decreased of around 5%. The services and other items activity in Palestine contributed the most to GDP compared to other activities in comparison with other activities, but preliminary estimates indicated a decline in the value added of around 3%, although the number of employed persons remained stable. The industrial activity is one of the most important economic activities which contributor in GDP and preliminary estimates recorded a decrease of around 1% during 2014 compared with 2013, although the number of employed persons in this activity remained stable.

 

Preliminary estimates of Palestinian labor market indicators

Preliminary estimates indicated that gross of employed persons in Palestinian local labor market was stable during 2014 compared with 2013 despite natural population growth.  This indicates the weak absorptive capacity of the local labor market.  Preliminary estimates indicated that the percentage of Palestinian employees working in Israel remained stable at around 10%. The rise in unemployment rate during 2014 to reach about 27% from about 24% in 2013, which resulted in the rescission in employment rates and absorption of new employees in the labor market and Israel.

 

A decrease in exports and an increase in imports of goods and services during 2014.

Preliminary estimates Palestinian of foreign trade movements, represented in exports and imports, indicated that the value of exports decrease by 1% compared with 2013 and the value of imports increased by more than 2% compared with 2013.

 

Prices

Preliminary estimates, it is expected that the average of overall consumer prices index in Palestine will increase by 2% during 2014 compared with 2013.

 

 


 

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