Economy - overview:
The West Bank - the larger of the two areas comprising the Palestinian Authority (PA) - experienced a limited revival of economic activity in 2009, but overall standard-of-living measures remain worse than prior to the start of the second intifada in 2000. The almost decade-long downturn has been largely a result of Israeli closure policies - a steady increase in Israeli-imposed movement and access restrictions across the West Bank in response to security concerns in Israel - which disrupted labor flows, manufacturing, and trade. Throughout 2009 an easing of these restrictions generated an uptick in retail and entertainment activity in larger cities. A high-cost capital structure and a loss of export markets remain the biggest impediments to growth. Israel's and the international community's financial embargo of the PA during March 2006 - June 2007 interrupted the provision of PA social services and the payment of PA salaries. Since then, the FAYYAD government in the West Bank has restarted salary payments and the provision of services but would be unable to operate absent high levels of international assistance. Without economic growth the PA will continue to rely on donor aid for its budgetary needs.

GDP (purchasing power parity):
$12.61 billion (2009 est.); $11.95 billion (2008 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):
$6.641 billion (2008 est.)

GDP - real growth rate:
5.5% (2009 est.); 2.3% (2008 est.)

GDP - per capita (PPP):
$2,900 (2008 est.)
note: data are in 2009 US dollars

GDP - composition by sector:
agriculture: 5%
industry: 14%
services: 81% (includes Gaza Strip) (2007 est.)

Labor force:
605,000 (2006)

Labor force - by occupation:
agriculture: 17%
industry: 15%
services: 68% (June 2008)

Unemployment rate:
16.3% (2008 est.)