The PMA Business Cycle Index (PMABCI) – February 2024

Drop in the West Bank and a collapse in the Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) showed a continuous decline of the overall index for Palestine during February 2024, and it remained at its lowest levels, recording –34.9 points compared to 1.8 points in September 2023 before the Israeli devastating military attack on Gaza Strip. Hence, the deterioration of the index continued in the West Bank and collapsed in the Gaza Strip.

The overall index in the West Bank, reached around -22.2 points in February 2024, compared to 4.8 points in September 2023. Hence, the manufacturing index decreased (from 4.2 to -5.6), construction index (from 0.2 to -5.6), trade index (from 0.9 to -7.4), renewable energy index (from 0.2 to -0.8), also transport and storage index declined (from 0.9 to -2.0), IT and communications index (from 0.5 to -0.3), On the other hand, agriculture index improved (from -2.2 to -0.4).

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

In the Gaza Strip, the Israeli military aggressive attack since October 2023, resulted in devastating and catastrophic tragedies, which affected all aspects of life in the Gaza Strip, and led to a challenging economic condition. Therefore, the overall index in the Gaza Strip has been estimated to be at its worst value of -100 during this attack, from October 2023, until February 2024.