PMA Business Cycle Index (PMABCI) – March 2025

Overall Index Decline Amid Intensifying Economic Challenges

The results of PMABCI indicate a decline in the overall index for Palestine, falling to       -13.4 points in March 2025, compared to -11.8 points in the previous month. This downturn reflects the ongoing Israeli aggression on the Gaza Strip, the suspension of all forms of aid, and the uncertainty prevailing in the West Bank.

West Bank: Relative Stability with a Downward Trend

In the West Bank, the overall index showed relative stability with a slight decline, registering -3.0 points in March compared to -2.9 points in February 2025. This trend is attributed to mixed performance across economic sectors. The trade index saw a significant drop (from -3.3 to -5.6), whereas the industry index improved (from -1.2 to 0.1), along with the construction index (from -0.1 to 0.7). Meanwhile, the agriculture index remained stable at 2.0 points, as did the renewable energy index (0.1 points), the transport and storage index (-0.1 points), and the IT and communication index         (-0.3 points).

Regarding business conditions, surveyed business owners in the West Bank reported increased production and sales levels, along with reduced inventory. However, their expectations for the coming three months remained pessimistic, particularly concerning production and employment levels.

Gaza Strip: Devastating Impact of Ongoing Israeli Aggression

In the Gaza Strip, the continued Israeli assault has led to near-total paralysis across all economic sectors and widespread destruction of infrastructure. Despite these challenges, the research team managed to collect limited data on the industrial sector’s performance. Based on these findings, the overall index is estimated to have reached -80 points in March 2025, an improvement from the record-low -100 points observed during earlier periods of the ongoing aggression, which began in October 2023.

In general, these results highlight the profound economic challenges facing Palestine, both in the West Bank and Gaza Strip, amid the ongoing crisis. The economic outlook remains uncertain, largely dependent on political and security developments, as well as the availability of international support to revitalize the national economy.