The PMA Business Cycle Index (PMABCI) – February 2023

Improved in the West Bank and stable in Gaza Strip

The PMA Business Cycle Index (PMABCI) for Palestine has slightly improved during February to 5.6 points compared to 4.9 points in January. This result came after an improvement in the West Bank and stability in Gaza Strip.

The overall index in the West Bank increased from 7.6 points in January to 8.6 points in February. Due to an increase in the trade index (from –0.4 to 1.0), in addition to an increase in the agriculture index (from 2.2 to 3.6). Contrary to the decrease in the manufacturing index (from 3.4 to 2.2), and the construction index (from 1.0 to 0.0). Whereas the renewable energy index was stable at around 0.6 points, with the transportation and storage, and IT and communications indices at around 0.9 points, and 0.3 points, respectively.

In general, firms’ owners in the West Bank indicated an increase in production and inventory levels, compared to a decrease in sales levels. However, their expectations about production and employment levels for the next three months were positive.

In Gaza Strip, the overall index remained stable at around -9.9 points in February, due to uneven performance in its sub-indicators, where the agriculture index increased (from 3.6 to 4.8), and the transportation and storage index (from 0.4 to 1.5), compared to a decrease in the manufacturing index (from 3.6 to 1.2), and the trade index (from –10.1 to –11.5). With stabilized indices of the construction at around -2.6 points, the renewable energy, and IT and communications at around -3.2 points, and -0.2 point, respectively.

Firms’ owners in Gaza Strip indicated to decrease in production and inventory levels, compared to an increase in sales levels. Moreover, expectations about production and employment levels for the next three months were positive.

PMA Business Cycle Index (point)*

Source: PMA (2023). PMABCI, February 2023.

* The maximum value is +100 (favorable economic performance), while the minimum is -100 (economic deterioration).

** Estimated value for Gaza Strip.