OCHA-oPt Socio-Economic

Fact Sheet

April 2008


Socio-Economic Indicators
Occupied Palestinian Territory
Indicator (Click on Link)
Demographics
Table1: Population in the occupied Palestinian territory (oPt),
West Bank, Gaza Strip, and by governorates
Workforce Statistics
Table 2: Unemployment in the oPt, West Bank and Gaza Strip
(relaxed)
Table3: Unemployment in the oPt, West Bank and Gaza Strip
(ILO)
Table 4: Unemployment by governorate in the West Bank
Table 5: Unemployment by governorate in the Gaza Strip
Table 6: Employment by economic activity
Table 7: Employment by status
Table 8: Employment by sector
Poverty
Table 9: Poverty in the oPt, West Bank and Gaza Strip (income)
Table 10: Poverty in the oPt, West Bank and Gaza Strip
(consumption)
Table 11: Poverty by gender of head of household
Table 12: Poverty by source of income
Food Insecurity
Food Insecurity

Wages
Table 13: Real and nominal wages in NIS
Macroeconomics
Table 14: Gross Domestic Product (GDP)
Table 15: PA operating budget: Sources of income

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

Demographics
Population in the oPt, divided into West Bank, Gaza Strip and the governorates
Table 1
Population

Year

Bethlehem

176,515

Hebron

551,130

Jenin

256,212

2007

West Bank

occupied Palestinian territory

Jericho


41,724

Jerusalem
2,345,107

362,521

Nablus

321,493

Qalqiliya
Ramallah

91,046
278,018

3,761,646
Salfit

59,464

Tubas

48,771

496,410

Gaza North

1,416,539

158,213

Gaza

Gaza Strip

Tulkarm

270,245

Khan Yunis

137,577

Deir El-Balah

103,606

Rafah

87,465

Source: Palestinian Central Bureau of Statistics (PCBS). Population, housing and establishment Census-2007
Press Conference of the Preliminary findings. February 2008

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

Workforce statistics
Unemployment definition:
1) According to International Labour Organization (ILO) standards: unemployment captures unemployed
persons who are 15 years and above, do not work at all, are not absent from a job and available for work, and
are actively seeking a job in the week-long period, during which the survey is carried out.
2) According to the relaxed definition: unemployment adds the total number of unemployed people
to the number of people currently not engaged in active job search but willing to work (known as ‘the
discouraged’).
a) Unemployment in the oPt, West Bank and Gaza Strip
Table 3
Table 2
Unemployment
(relaxed definition)

Unemployment
(ILO definition)

Year

oPt


West
Bank

Gaza
Strip

Year

oPt

West
Bank

Gaza
Strip

1999

21.7%

19.9%

26.0%

1999

11.8%

9.5%


16.9%

2000

24.9%

21.6%

32.0%

2000

14.3%

12.3%

18.9%

2001

35.9%

30.4%

47.8%

2001

25.2%


21.5%

34.2%

2002

41.2%

38.1%

48.1%

2002

31.3%

28.2%

38.0%

2003

33.4%

32.0%

36.4%

2003


25.6%

23.8%

29.2%

2004

32.5%

29.2%

39.9%

2004

26.8%

23.0%

35.4%

2005

28.9%

26.1%

35.2%


2005

23.5%

20.3%

30.3%

2006

29.6%

25.0%

39.9%

2006

23.6%

18.6%

34.8%

Q1 2007

27.9%

24.3%


35.4%

Q1 2007

21.6%

17.3%

30.4%

Q2 2007

25.7%

22.6%

32.3%

Q2 2007

19.2%

15.8%

26.4%

Q3 2007

29.1%


25.2%

37.6%

Q3 2007

23.2%

18.6%

32.9%

Q4 2007

28.8%

25.9%

35.3%

Q4 2007

22.2%

19.2%

29.0%

Source: Palestinian Central Bureau of Statistics (PCBS). Various labour force surveys (LFs).


Figures in red indicate higher percentages of unemployment, chosen to exceed 25% for easy reading

40%
35%
30%
25%
20%
15%
10%
5%

Gaza Strip
oPt
West Bank

0%

% Unemployment rate (ILO definition)

45%

Unemployment (ILO definition) from 1999-Q4 2007
50%
45%
40%

Gaza Strip
oPt
West Bank


35%
30%
25%
20%
15%
10%
5%
0%

19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
Q 06
1
20
Q 07
2
20

Q 07
3
20
Q 07
4
20
07

50%

19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
Q 06
1
20
Q 07
2

20
Q 07
3
20
Q 07
4
20
07

% Unemployment rate (relaxed definition)

Unemployment (relaxed definition) from 1999-Q4 2007

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

b) Unemployment by governorate (ILO definition)

Unemployment in the West Ba

Table 4


Year

Year

Region
West Bank*

Q3 2000

Gaza Strip

16.2%

oPt
West Bank
Q3 2007

Gaza Strip

Q4 2007

Gaza Strip

12.3%

12.7%
16.1%

15.4%


oPt

14.8%
3.7%

15.0%

15.3%

13.9%

5.5%
12.3%

4.4% 26.7%
20.6%

17.1%18.4%

19.7%
2004
18.7%

2005
11.6%

12.8%

13.9%


2002 13.2%

21.7%
2003

5.8%

15.1%
15.9%

15.9%

15.0%

12.7%

oPt
West Bank

Bethlehem Hebron

Jenin

Jericho Jerusalem Nablus

Q

Employment by economic activity (out of total employed)
1999

12.0%
6.4% 12.5% 6.1%
9.8%
9.2%
PA
Agriculture,
Services
employees
Commerce Transport /
Forestry and Manufacturing Construction
(including 7.3%
2000
9.7%
10.6% 16.6% PA
11.6%
11.2%
/ Hotels
storage
Fishing
employees)
2001
11.5%
16.1% 37.2% 11.4%
15.2%
22.9%
11.3%
16.1%
24.2%
18.7%
5.1%

24.6%
12.8%

4.9%
22.3%

2006
20.0%

1.5% Q1 2007
19.0%

26.1%
5.8%

13.7%
5.0%

1

3

38.0%
45.1% 10.9%

28.5%
27.8%

29.5%


2

28.6%
35.5% 9.4%

17.4% 25.8%
22.3%

2

5.4%
28.6%
15.4%
21.1%
25.3% 28.7% 13.0%
22.8%
6.9%
52.2%
40.2%

13.5%
19.5%

1

25.3% 13.2%
35.2%

23.3%30.2%
23.2%


20.8%

2

16.8%
18.1%
22.3%

2

14.4%15.0%
13.2%

17.6%

1

7.9% 16.8%
16.3%

52.2%
23.5% 14.0%

41.1%
12.0%

17.6%

1


10.4% 200719.7% 22.1% 5.9%
Q2
14.1%

36.4%
17.4% 8.3%

22.5% 13.0%
13.0%

1

15.9%

14.8%

1

Source: PCBS. Q3 2000, Q3&Q4 2007 labour force surveys.
* West Bank figures include East Jerusalem

Q3 2007

16.0%

28.2%

9.9%


16.3%

Source: PCBS. Various labour force surveys.
Figures in red indicate higher percentages of unemployment, chosen to exceed 25% for easy reading.

Tables 2-5: Since the beginning of the second
Intifada in late 2000, unemployment has fluctuated
in all governorates, however, it has remained
higher than before the Intifada. The increase in
unemployment rate in the oPt is mainly stimulated
by the external and internal closure regime Israel
has imposed on the oPt.

Table 5
Year

Unemployment in the Gaza Strip (ILO
definition)

Internal closures in the West Bank have caused
an economic decline, contributing to an increase
in unemployment rates. The closures have forced
transportation costs to go up and limited the
access of workers to better jobs within the West
Bank. This has particularly affected marginalised
and remote areas where unemployment is high.
In addition to closures, both Palestinian-Israeli
violence and internal violence have created an
environment discouraging investment and limiting
the capacity of the local labour market to create

jobs.

Gaza
North

Khan
Yunis

Middle
Area

Rafah

1999

13.3%

14.8%

19.4%

22.6%

19.2%

2000

17.5%

16.3%


20.6%

22.6%

19.5%

2001

32.4%

34.8%

36.6%

34.3%

34.5%

2002

36.1%

37.1%

38.5%

39.9%

41.2%


2003

27.8%

27.7%

32.1%

31.5%

28.2%

2004

External closures restrict the access of Palestinian
workers to jobs in Israel. They also cripple the
economy by limiting the free flow of exports and
imports, thus affecting the availablility of jobs.

Gaza

32.8%

36.6%

38.2%

36.9%


35.2%

2005

26.8%

33.6%

31.2%

35.1%

29.0%

2006

33.3%

39.0%

36.1%

35.0%

30.2%

Q1 2007

37.9%


36.0%

40.9%

39.1%

37.3%

Q2 2007

20.2%

27.5%

30.4%

33.4%

24.0%

Q3 2007

28.6%

36.4%

37.8%

32.0%


31.5%

Q4 2007

23.0%

32.0%

34.2%

30.8%

29.6%

Source: PCBS. Various labour force surveys.
Figures in red indicate higher percentages of unemployment,
chosen to exceed 25% for easy reading.

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y


c) Employment distributed by economic activity
ank (ILO definition) 6
Table
Ramallah

13.5%

5.9%
Year

13.9% 11.1%Forestry and Manufacturing Construction Commerce Transport /
13.8%
Region

17.7%

9.6%

18.1%

32.9%

26.2%
Q3 2000

Gaza
40.7%Strip
30.9%

27.0%


25.9%

oPt
29.1% 39.5%

22.7%

20.5%

23.2%

24.8%

21.9%

Q3 2007

Salfit

Tubas

Employment by economic activity (out of total employed)
Tulkarm

Qalqiliya

Agriculture,

16.0%


West Bank*

West Bank

16.1%

16.2%
20.9%

16.1%

24.9%

18.9%

20.9%

15.8%

21.3% 20.1%
21.9%
West Bank
15.9%

16.5%

15.6%

16.0%


18.8%

Q4 2007

Gaza Strip

16.3%

17.6%

16.2%

21.5%

19.5%

15.4%

15.1%
15.0%

13.9%

21.9%

oPt

15.3%


23.2%

19.7%

20.0%

10.4%

5.0%
7.9%

19.7%

5.9%

17.4%
15.4%

52.2%

5.8%

19.0%

28.5%

28.6%
28.6%

6.9%


19.5%

1.5%

12.3%

5.4%

PA
employees

12.8%

38.0%

4.9%

18.7%

11.6%
13.9%

5.5%

24.6%

4.4%

17.1%


3.7%

12.8%

5.1%

13.2%

21.7%
14.8%

5.8%

22.4%

18.7%

15.9%

15.0%

12.7%

19.8%

24.2%

12.3%


12.7%
23.6%

22.2%

oPt

storage

16.7%

11.3%

Gaza Strip

/ Hotels

Fishing

Services
(including PA
employees)

40.2%

35.2%
30.2%

22.3%
15.0%


52.2%
36.4%

41.1%
22.5%

22.7%

Source: PCBS. Q3 2000, Q3&Q4 2007 labour force surveys.
* West Bank figures include East Jerusalem

17.0%

19.9%

16.9%

22.3%

Table 6: The most significant trend since the beginning of the second intifada has been the decrease in
15.0%
20.4% 22.5%
15.9%
employment in the construction sector and the increase in employment in the service sector, particularly
in the governmental sector. In addition, there has been a slight drop in employment in manufacturing and an
increase in employment in the agricultural and commerce sectors.
In the West Bank, workers have increasingly reverted to agriculture as fewer jobs are available in other
sectors. Family members in particular tend to engage in the olive harvest in the third quarter of each year.
The increase in employment in the Palestinian governmental sector is part of the PA’s policy aimed at reducing

unemployment.

d) Employment distributed by status
Table 7
Employment by status in the oPt
Wage employees (including
private and public sector)

Employer

Unpaid family
members

Self-employed

Q3 2000

67.6%

4.4%

9.9%

18.1%

Q3 2007

59.6%

4.2%


12.7%

23.5%

Q4 2007

60.5%

4.3%

11.9%

23.3%

Year

Source: PCBS. Various labour force surveys.

Table 7: The reason for the main trend in the distribution of employment by status is that the number of
employers and paid employees is decreasing whilst the number of self-employed and unpaid family members
is increasing.This trend seems to be characterised by an increase in more traditional, family-based, low-skilled
and less capital-intensive activities, such as agriculture and commerce. However, this comes at the expense of
higher capital-intensive activities such as industrial work.

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

e) Employment distributed by economic sector
Table 8
Employment by sector
(out of total employed)
Year

Region
West Bank

1999

Public
12.7%

Gaza Strip

West Bank
2000

13.9%

oPt


2001

15.7%
41.5%

oPt
West Bank
2002

17.4%

Gaza Strip
oPt
West Bank

2003

15.4%

Gaza Strip
oPt
West Bank

2004

16.0%

Gaza Strip

37.1%


oPt
West Bank
2005

Gaza Strip
oPt
West Bank

2006

16.1%

Gaza Strip
oPt
West Bank

2007 Q1

16.5%

Gaza Strip

38.7%

oPt
West Bank
2007 Q2

16.2%


Gaza Strip
oPt
West Bank

2007 Q3

15.4%

Gaza Strip
oPt
West Bank

2007 Q4

15.0%

Gaza Strip

41.1%

oPt

22.5%

3.4%
6.1%
9.9%

13.0%


50.9%

4.2%
3.7%

0.1%

63.0%

7.4%
9.6%

13.8%

53.7%

4.7%
3.8%

0.0%

62.4%

7.6%
9.8%

11.9%

56.0%


4.9%
3.8%

0.0%

64.6%

7.9%
8.5%

12.9%

51.8%

5.0%
3.7%

0.0%

63.5%
67.2%

4.4%

0.4%

63.7%

22.3%


6.1%

13.7%

68.0%

40.2%

3.8%

8.7%

55.5%

21.9%

4.4%

1.1%

65.1%

68.0%

36.1%

4.9%
9.7%


55.7%

22.9%

4.2%

11.5%

65.9%

4.9%

3.1%

65.9%

22.8%

6.4%

12.5%

67.2%

41.5%

4.3%

10.3%


61.3%

22.2%

4.2%

2.5%

62.0%

66.9%

38.0%

6.7%

13.8%

54.3%

21.8%
15.9%

3.4%

13.3%

68.7%

3.4%


1.9%

59.7%

20.1%

4.9%

17.9%

67.9%

30.6%

2.8%

19.5%

50.0%

22.8%

3.4%

12.7%

58.2%

64.9%


36.8%

4.5%

22.9%

51.0%

22.3%

3.0%

22.2%

63.0%

Other sectors

15.7%

56.8%

18.9%

Gaza Strip

25.8%

61.1%


31.4%

Israel and the
settlements

52.5%

16.9%

Gaza Strip

West Bank

58.5%

27.3%

oPt

Private

8.0%
9.3%

14.1%

53.2%
63.2%


4.9%
3.7%

0.0%

5.7%
4.3%

10.0%

Source: PCBS. Various labour force surveys
* All West Bank figures include East Jerusalem.

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OCHA Socio-Economic Fact Sheet
100%

Private

Employment by sector in the Gaza Strip
(out of total employed)

90%


Israel and the settlements
Public
Privatesectors
Other
Israel and the settlements

100%
80%

Employment by sector in the Gaza Strip
(out of total employed)

90%
70%

Public

80%
60%
100%

Other sectors
Private

Employment by sector in the Gaza Strip
(out of total employed)

70%
50%

90%

Israel and the settlements
Public

60%
40%
80%

Other sectors
50%
30%
70%
40%
20%
60%
30%
10%
50%

90%
0%

Q
4
20
07
Q
4


Q
3
20
07
Q
3

Israel and the settlements

(incl. East Jerusalem)

(out of total employed)
Employment by sector in the West Bank

Q
4

20
07

20
07

Q
3

Q
2

20

07

Q
1
20
07

20
06

20
05

20
04

20
03

Public

20
02

Israel and the settlements

(out of total employed)

60%
40%

80%

Other sectors
Private

(incl. East Jerusalem)

70%
50%
90%

Public

Employment by sector in the West Bank

80%
60%
100%

20
01

(incl. East Jerusalem)

(out of total employed)

90%
70%

Public

Privatesectors
Other
Israel and the settlements

20
00

100%
80%

20
07

Private
Employment sector in the West Bank
Employment by economic by sector in the WestBank from 1999-Q4 2007

20
07

Q
2
20
07

20
06
20
06


Q
2

20
05
20
05

Q
1

20
04
20
04

20
07

20
03
20
03

20
07

20
02
20

02

100%
10%

Q
1

20
01
20
01

0%
20%

20
07

20
00
20
00

10%
30%

19
99


20%
0%
40%

19
99

Private employment in
the West Bank has surged,
which is mainly due to the
increase in employment
in the agricultural sector.
Private employment in the
Gaza Strip hardly increased
due to the severity of the
external closures imposed
on imports and exports,
which
have
tightened
further since June 2007.

Employment by economic sector in the Gaza Strip from 1999-Q4 2007

19
99

Table 8: Since the beginning
of the second Intifada,
the percentage of those

employed in the public
and private sectors has
increased, out of those total
employed in the oPt, whilst
the percentage of those
employed in Israel and the
settlements has dropped
substantially.

occupied Palestinian territor y

Other sectors

50%
30%
70%
40%
20%
60%
30%
10%
50%

80%
60%
100%

60%
40%
80%


Q
4
20
07
Q
4

Q
3
20
07

20
07

20
07

Q
3

Q
2
Q
2

20
06
20

06

20
07

20
05
20
05

Private

Q
4

20
07

Q
3

Q
2

Public
Privatesectors
Other
Israel and the settlements

20

07

1999-Q4 2007

20
07

Q
1
20
07

20
06

20
05

Israel and the settlements

Public
Other sectors
Private

Employment by sector
in the occupied Palestinian territory
(out of total employed)

70%
50%

90%

20
07

20
04
20
04
20
04

Q
1

20
03
20
03
20
03

20
07

20
02
20
02


Q
1

20
01
20
01

20
02

Employment
90%
70%

Employment by sector
in the occupied Palestinian territory
(out of total employed)
Employment
by economic by sector the oPt from
sector in
in the occupied Palestinian territory
(out of total employed)
20
01

100%
80%

19

99

90%
0%

20
00

100%
10%

19
99

0%
20%

20
07

20
00
20
00

10%
30%

19
99


20%
0%
40%

Israel and the settlements
Public
Other sectors

50%
30%
70%
40%
20%
60%
30%
10%
50%

Q
4

Q
3
20
07

Q
2
20

07

Q
1
20
07

20
07
Q
4

20
06
20
06

20
07

20
05
20
05

Q
3

20
04

20
04

20
07

20
03
20
03

Q
2

20
02
20
02

20
07

20
01
20
01

Q
1


20
00
20
00

10%

19
99
19
99

0%
20%

20
07

20
06

20
05

20
04

20
03


20
02

20
01

20
00

10%
30%

19
99

20%
0%
40%

Q
4
20
07

Q
3
20
07

Q

2
20
07

20
07

Q
1

0%

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

Poverty
Poverty definition:
The PCBS has developed two poverty lines according to the actual spending patterns of a Palestinian average
household of six individuals. The first line is the “absolute (deep) poverty line” that reflects a budget for food,
clothing and housing. The second line is the “relative poverty line” that adds other necessities such as health
care, education, transportation, personal care (i.e. cosmetics, hairdresser and other hygiene personal items)

and housekeeping supplies (i.e. hygiene domestic items and cooking utensils). In 2006, the relative poverty line
and the absolute poverty line for the average household in the oPt stood at a monthly income of less than
2,300 NIS (USD 518) and 1,837 NIS (USD 414) respectively.
a) Poverty rates in the oPt, West Bank and Gaza Strip
Table 9 rates
3-Poverty
Poverty
(income-based)
Area

Type of
poverty
Poverty

West Bank

West BankNorth

West BankMiddle

West BankSouth

Deep
poverty
Poverty
Deep
poverty
Poverty
Deep
poverty

Poverty
Deep
poverty
Poverty

Gaza Strip

Deep
poverty
Poverty

oPt

Deep
poverty

2001

2004

35.5%

48.0%

28.8%
43.4%

20.6%

41.8%

33.6%
64.7%

45.0%
37.9%

28.6%

36.4%
n/a
n/a
n/a

24.7%
56.5%

n/a
n/a

41.1%
63.1%

53.9%
53.7%

49.1%

37.6%

51.8%

65.0%

56.5%

51.6%

23.1%
59.3%

2006

34.5%

44.3%
29.6%

16.3%

45.7%

39.7%
54.6%

35.8%

2005

51.6%
51.5%


44.4%

40.2%

n/a
79.3%
66.7%
56.8%
44.1%

Source: PCBS, Poverty data, sent by PCBS upon request from OCHA.

Table 10
Poverty
(consumption-based)
Area

Type of
poverty
Poverty

West Bank

West BankNorth

West BankMiddle

West BankSouth

Poverty


8.4%
18.3%

Deep
poverty
Poverty
Deep
poverty
Poverty
Deep
poverty

Deep
poverty
Poverty

oPt

14.5%

Deep
poverty

Poverty
Gaza Strip

1998

Deep

poverty

9.9%
6.9%

2001
16.2%
14.5%
18.4%
18.3%
9.3%

4.6%
20.4%
12.2%
33.0%
21.6%
20.3%
12.5%

2004
30.9%
20.3%
22.2%
11.7%
6.7%

6.9%
23.5%
20.4%

41.9%
33.0%
23.6%
20.3%

19.8%

31.2%
20.6%
44.7%
32.2%
35.5%
24.3%

2006
24.0%

11.6%
22.5%

13.0%
n/a

12.4%
11.0%

3.7%

Source: PCBS, Poverty data, sent by PCBS upon OCHA's request


2005

n/a
n/a

6.7%
34.9%

n/a
n/a

21.4%
37.2%
26.0%
25.6%
16.4%

n/a
50.7%
34.8%
36.9%
18.5%

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OCHA Socio-Economic Fact Sheet
C- Poverty and female-headed households (2006):

Female-headed
households

65.2%

7.8%

occupied Palestinian territor y

Source: PCBS. Poverty in the oPt, 2006. Main findings
reports. August 2006.

Female-headed households constitute about 7.8% of the
Palestinian
b) Poverty HH. Although this group is head of the household1
rates by gender of the one of the highest
recipients of public support and assistance, the following table
shows that the female-headed HHs are more likely to be poor
than 11
Tablethe male-headed ones:
Poverty (by gender of household head) in
2006
Type of
household


Poverty rate

Male-headed
households

56.0%

Female-headed
households

65.2%

% of total
households

Households that depend on public salaries are less likely to

suffer 12
Table poverty compared to the other HH (2006)
Poverty (by source household
income) in 2006
Source of
income

Poverty rate

92.2%
Agriculture
7.8%


Source: PCBS. Poverty in the oPt, 2006. Main findings
reports. August 2006.

D- Poverty and main source
income:
Table 11: Female-headedofhouseholds constitute 7.8% of
Households that depend on public salaries this group is
all Palestinian households. Althoughare less likely to one of
suffer poverty compared to the other HH (2006)
the highest recipients of public support and assistance,
Poverty among these households is higher than among
poverty (by source household
income) in 2006
households headed by a male. This phenomenon is linked
to Source of that in female-headed households, there is only
the fact
Poverty rate
income
one parent and the care of children is usually carried out
at the expense of income generation.
Agriculture

c) Poverty ratesmainmain source of income2
D- Poverty and by source of income:

77.6%

Table 12: Households that depend on public salaries are
Salaries from

40.7%
among those less likely to suffer from poverty than other
Israel
households.
Salaries from
public sector

52.1%

Salaries from
private sector

62.1%

Income from
transfers/aid

74.4%

Other HH
business

47.7%

Other resources

39.6%

Source: PCBS. Poverty in the oPt, 2006. Main
findings reports. August 2006.


47.7%

Other resources

Salaries from
public sector

74.4%

Other HH
business

40.7%

62.1%

Income from
transfers/aid

Salaries from
Israel

52.1%

Salaries from
private sector

77.6%


39.6%

Foodreports. August 2006.
findings insecurity

Source: PCBS. Poverty in the oPt, 2006. Main

Food security definition:
Food security means having access to sufficient, safe and nutritious food to meet dietary needs and lead an
active and healthy life at all times.
In 2006, an estimated 34%, or about 1,300,000, of the Palestinian population, was reported to be food insecure.
An additional 12% were estimated to be vulnerable to becoming food insecure. 3

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

Wages
Real and nominal wages definition:
Real wages are wages adjusted for inflation and show the monetary value of wages in a certain year known
as the base year (Base Year: 1996). Nominal wages are the money value of wages in different years.
Table 13

Wages and income in NIS

Year

Area

West Bank*
Q3 2000

Average daily
nominal wage
70

Gaza Strip

1708
50

Israel and the
settlements
West Bank*
Q3 2007

Average
monthly
nominal wage

57
1194


111
77

Gaza Strip
Israel and the
settlements

Average daily
real wage

2249

828
90

49
1436

132

1367
41

1696
64

Average
monthly real
wage


975
44

2678

1807

877
84

1682

Source: PCBS. Various labour force surveys. Real wages are calculated by OCHA.
* West Bank figures include East Jerusalem

Table 13: Although there has been an increase in nominal wages since the beginning of the second intifada, it
was actually offset by the price increases, which have taken place since the beginning of the Intifada and surged
in 2007. For this reason, real daily wages have decreased.
Wages in the Gaza Strip are lower than those of the West Bank due to: a) high participation rate of population
in labour market as a result of the high population growth rate and the loss of jobs in Israel, b) limited capacity
of the Gazan labour market to create new jobs due to closures.

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

Macroeconomics
Real Gross Domestic Product (GDP) definition:
The real GDP, which uses constant prices,4 measures the value of goods and services produced in a certain
year.
7- Macroeconomic data:
A- Gross Domestic Product (GDP):

Table 14

GDP of the oPt in constant prices
[USD million]

Real GDP growth

GDP per capita in
USD

Real GDP per
capita growth

1999

4,896

8.9%
7- Macroeconomic1,622

data:
A- Gross Domestic Product (GDP):
-5.5%
1,469

4.4%

2000

4,627

2001

3,906

2002

3,540

2003

3,744

5.8%
1999

1,065
4,896

2.1%


2004

3,970

6.0%
2000

1,091
4,627

2.5%

2005

4,210

6.0%
2001

1,119
3,906

2006

3,873

-8.0%
2002


n.a.
3,540

-10.9%
-9.4%

-9.4%

-15.6%
1,193
GDP of the oPt in constant prices
[USD million]
-9.4%
1,043

-18.8%

2005
8.9%

1,622

4.4%

-5.5%

1,469

-9.4%


1,193

-18.8%

1,043

-12.6%

5.8%

1,065

2.1%

6.0%

1,091

2.5%

1,119

2.5%

6,000

Real GDP
[$ million]

3,970


8.9%

6.0%

3,744

2004

Real GDP
growth

0.15

0.1

2003

Real GDP per
capita growth

2.5%
-15.6%

Source: Figures obtained upon request from IMF.(International Monetary Fund).
0.2

GDP per capita in
USD


Real GDP growth
-12.6%

5,000

4,210
6.0%

6.0%

-10.9%

-0.2
1999

2000

2001

2002

2003

2004

Real GDP per capita declined by 40% in -0.05
5
2006 compared The real GDP per capita growth rates arePCBS rates.
Preliminary annual growth -0.1
Note: to 1999.

results show that the economy recovered
slightly in the second half of 2007, however, -0.15
GDP per capita declined by about 5% in 2007
-0.2
compared with 2006.
1999
GDP of the oPt in constant prices
[$ million]

2005

6,000

Real GDP
[$ million]

Real GDP
growth

2006
3,873
4,000 -8.0%
Table 14:The Gross Domestic Product (GDP) Real GDP in $million and real GDP growth 1999-2006 n.a.
0.05
has decreased since the beginning of the 5.8% 0.2
0
3,000
second Intifada, with GDP levels remaining
well below the pre-intifada ones. The GDP is 0.15
-0.05

-5.5%
2,000
estimated at $4,107 million in 2006 compared
-8.0%
0.1
8.9%
-9.4%
6.0%
-0.1
to $4,511.7 million in 1999. A significant
1,000
decline took place in 2001 and 2002, however, 0.05
5.8%
-0.15
it improved in the subsequent-15.6%
years.
0

5,000

6.0%
4,000

3,000

0
2006

Real GDP growth
-5.5%


2,000
-8.0%
-9.4%
1,000
-15.6%

2000

2001

2002

GDP of the oPt in constant prices
[$ million]

2003

2004

2005

0
2006

Real GDP growth

The decline in GDP was influenced by the Note: The real GDP per capita growth rates are annual growth rates.
following: the reduction in the expenditure
of Palestinian households, the lack of investment and security due to closures, the reduced government

expenditure including the non-payment of PA salaries and the prolonged domination of imports over exports
in the Palestinian economy.

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

PA operating budget
The PA operating budget in total and percentages
Table 15
PA operating Budget

Year

USD million

Year
2005

USD million

USD million

%
USD million

USD million

2005

2006

Clearance
revenues
collected by GoI
Clearance
894
revenues
collected by GoI
40.71%
894

2006

USD million

2007
Budget

collected
taxes
21.68%


26.34%

50.73%

738

349
2,196

1,435
15.89%

-1.74%

51.43%

-25

336
23.97%

477
21.72%

378

1280

%


-25
21.68%

23.97%
344

%

Total other fincancing, incl.
477
349External finance for
Palestinian Investment
2,196 TOTAL
budgetary support
Fund Dividend
21.72%
15.89%

378
40.71%

%
USD million

476 Locally-

476

344


%

LocallyTotal other fincancing, incl.
External finance for
collected
Palestinian Investment
6 TOTAL
budgetary support
PA
taxes operating Budget
Fund Dividend

738

0
26.34%

1,435

907
-1.74%

13.32%

0.00%

51.43%
2,523

35.95%


USD million million
USD

USD million
1280
336
0
907
2007
Source: IMF. Mid-Term Macroeconomic and Fiscal Framework for the West Bank and Gaza Strip. Report for the Donors' Conference. December
Budget
17, 2007.
%
50.73%
13.32%
0.00%
35.95%

2,523

3000
Source: IMF. Mid-Term Macroeconomic and Fiscal Framework for the West Bank and Gaza Strip. Report for the Donors' Conference. December

17, 2007.
PA operating budget 2005-2007
3000

2500
2500


2000
2000

1500
1500

1000
1000

500
500

0
02005

2006

2005

External finance for budgetary support

2007 Budget
2006

External finance for budgetary support

Total other fincancing, incl. Palestinian Investment Fund Dividend

Total other fincancing, incl. Palestinian Investment Fund Dividend


2007 Budget

Clearance revenues collected by GoI
Clearance revenues collected by GoI

Locally-collected taxes

Locally-collected taxes

Table 15: Compared to previous years the PA budget dropped significantly in 2006, as a result of the financial
sanctions Israel and the international donor community imposed on the Hamas-led government following the
January 2006 elections.
The clearance revenues (including VAT and customs) budget item collected monthly by the Government of
Israel on behalf of the PA, constitute the largest component in the PA budget, making about 50% of the budget,
when transferred monthly.

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OCHA Socio-Economic Fact Sheet

occupied Palestinian territor y

End Notes

1.

Figures are available only for 2006

2.

Figures are available only for 2006

3.

For more information, please visit the following webpage which includes a report prepared by WFP and FAO on the Comprehensive Food Security and Vulnerability Assessment
(CFSVA) in 2006: />
4.

Constant prices are prices fixed for a specific year, called the “base year”, against which other years are compared. For the oPt, PCBS determined the constant prices in 1997.

5.

International Monetary Fund (IMF). Fiscal performance in 2006. March 2007

6.

External finance for budgetary support includes aid from Arab countries and other countries to the PA to finance recurrent expenditures- staff wages and operating costs.

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