The PMA Business Cycle Index (PMABCI) – March 2024 Drop in the West Bank and a collapse in the Gaza Strip

The PMA Business Cycle Index (PMABCI) results revealed that the overall index for Palestine has declined during March 2024, and remained within its lowest levels, recording –12.1 points compared to 1.8 points in September 2023. This result came after the devastating and destructive military Israeli attack on the Gaza Strip, and tightening of the arbitrary measures in the West Bank. Hence, the index deteriorated in the West Bank and collapsed in the Gaza Strip.

The overall index in the West Bank decreased from 4.8 points in September 2023, to -6.2 points in March 2024. Where, the manufacturing index decreased (from 4.2 to -2.5), the construction index (from 0.2 to -1.4), the trade index (from 0.9 to -2.9), and the transport and storage index declined (from 0.9 to 2.0). On the other hand, the agriculture index increased (from -2.2 to 0.3), while the IT and communications index stabilized at around 0.1 points, and the renewable energy index at around -0.1 points.

Firms’ owners in the West Bank indicated an increase in production, inventory, and sales levels, compared to February 2024. 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 Gaza, and led to extremely bad economic conditions. Therefore, the overall index in the Gaza Strip has been estimated to be at its worst value of -100 from October 2023, until March 2024.