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PMA Business Cycle Index (PMABCI) – July 2025
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PMA Business Cycle Index (PMABCI) – July 2025

Slight Improvement in the West Bank, Paralysis in the Gaza strip

The results of the PMA’s Business Cycle Index (PMABCI) indicated an improvement in overall business activity in Palestine during July 2025, as the composite index rose to  -21.5 points, compared to -32.9 points in June 2025. Despite this improvement, the index remains at deeply negative levels, reflecting the ongoing uncertainty caused by the unprecedented Israeli aggression against both the Gaza Strip and the West Bank.

The overall index in the West Bank recorded a slight improvement, rising from -22.4 points in June 2025 to -19.4 points in July 2025. This modest increase was primarily driven by improvements in the performance of several economic sectors, as follows:

  • The Industrial index improved from -6.9 to -5.3 points.
  • The agriculture index rose from -1.2 to -0.5 points.
  • The transportation and storage index increased from –2.0 to -0.9 points.
  • The IT and communications index climbed from -0.9 to -0.1 points.

Conversely, the trade index declined from –7.2 to -8.8 points, While the construction index stable at around -3.8 points, and the renewable energy index held steady at around -0.1 points.

The business owners surveyed in the West Bank reported lower production levels alongside increased sales volumes, accompanied by a decline in inventory levels. Moreover, their outlook for the next three months remained pessimistic regarding future production levels.

As for the Gaza Strip, Gaza continues to suffer from a near-total economic paralysis due to the ongoing Israeli assault, which has inflicted extensive destruction on infrastructure and all aspects of daily life. Under these catastrophic conditions, the overall index for Gaza is expected to remain at its lowest level—around -100 points—indicating an almost complete halt in economic activity across the Strip.

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