- Thursday, June 2, 2005
- Palestinian Economy, Policy Framework and Growth Prospects: A Modeling Perspective
- Published at:EconModNet, Free University of Brussels Conference on Middle East and North African Economies: Past Perspectives and Future Challenges Brussels, June 2-4, 2005
The Palestinian economy continues to be engulfed in the economic crises sparked by the Israeli incursions in the occupied Palestinian Territory since the outbreak of the Al-Aqsa Intifada in September 2000. There was a substantial decline in the performance of different socioeconomic indicators, which have reached alarming levels in 2002. In 2003, the Palestinian economy began to show signs of recovery and adjustment to the crisis after two years of unprecedented regression. For example, real gross domestic product (GDP) in 2003 experienced a growth rate of 4.5% compared to 2002 by reaching US$ 4011 million at constant 97 prices after a decline by 11.1% compared to 1999 (PCBS 2004a). Drastic changes have also been witnessed at the sectoral level. Value added by sector in 2003 was close to the level in 1999 for the best performing sector (construction) and much below the 1999 level for all other sectors.