PMA Business Cycle Index (PMABCI) – January 2025 Slight Improvement in the Overall Index

The results of PMA’s Business Cycle Index showed a slight improvement in the overall index for Palestine, reaching (-30.2) points in January 2025, compared to (-32.3) points in December 2024. Despite this relative improvement, the index remained at very low levels due to ongoing uncertainty amid the Israeli aggression on the Gaza Strip and the West Bank.

In the West Bank, the index recorded a minor improvement in January 2025, rising to about (-21.1) points compared to (-23.5) points in December 2024. This was driven by improvements in the agriculture index (from -2.7 to -1.7), the trade index (from -8.2 to -7.3), and the industrial sector index (from -5.5 to -5.3), while the construction index declined (from -4.3 to -4.7). Meanwhile, the indices for transportation and storage        (-1.1 points), renewable energy (-0.4 points), and information and communication technology (-0.7 points) remained stable.

Overall, business owners in the West Bank reported improved production, sales, and inventory levels. However, their expectations for production levels over the next three months remained negative.

As for the Gaza Strip, the ongoing Israeli aggression has caused near-total destruction of infrastructure, industrial establishments, and other economic sectors. Given the dire economic conditions and the near-total halt of economic activity, the business cycle index in Gaza is expected to remain at its lowest level, around (-100) points, throughout the ongoing Israeli aggression that has persisted since early October 2023 until the time of this report’s preparation.