The PMA Business Cycle Index (PMABCI) – December 2023

Slight Improvement in the West Bank and a collapse in the Gaza strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has improved during December 2023, while it remained at low levels, recording –36.4 points compared to –52.7 points in November. This result came after a slight increase in West Bank, even though it’s at low level, against a collapse of the index in the Gaza strip due to the continuous and devastating Israeli aggression.

The overall index in West Bank reached -24.0 points in December compared to –43.6 points in November. Hence, all sub-indices have improved during this month compared to the previous: manufacturing index (from -12.0   to -4.6), construction index (from -10.0 to -7.0), trade index (from -11.2 to -7.5), transport and storage index (from -3.1 to -1.8), also the IT and communications index (from -1.3 to -0.5), agriculture index (from -4.5 to -1.3). However, the renewable energy index stabilized at around -1.3 points.

Firms’ owners in West Bank indicated an increase in production and sales levels, and a decrease in inventory level. Furthermore, their expectations were positive about production and employment levels for the next three months.

In the Gaza Strip, the Israeli aggression resulted in devastating and catastrophic tragedies and has paralyzed life in all its aspects in the Gaza Strip. According to estimates, the overall index for the Gaza Strip is estimated to be at its lowest level of -100 points for the three consecutive months of October, November, and December.