The PMA Business Cycle Index (PMABCI) – May 2023 Improvement in the West Bank and drop in Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine has improved from 13 points in April to 15.4 points in May. The index has increased in West Bank, while it declined in Gaza Strip.

The overall index in West Bank increased from 14.6 points in April, to 19.4 points in May. Due to the improvement in the indices of the construction (from 2.6 to 5.6), agriculture index (from 3.1 to 4.0), and IT and communications index improved (from -0.1 to 0.7). On the contrary, the transportation and storage index declined (from 1.5 to 0.4). With stabilized the indices of manufacturing at around 5.9 points, trade stable at around 2.7 point, as well as renewable energy at 0.1 points.

Firms’ owners in West Bank indicated an increase in production, sales, and inventory levels. In addition, their expectations were positive about production levels for the next three months.

In Gaza Strip, which witnessed Israeli aggression, the overall index deteriorated from 4.6 points in April, to -5.2 points in May, due to the declined indices of agriculture (from 9.6 to 0.0), manufacturing (from 2.6 to 2.0), trade (from -3.5 to -4.8), and transportation and storage (from 0.4 to -2.3). While the renewable energy index increased (from -1.6 to 2.7), and the construction, the IT and communications indices were stabilized at around -2.9 points, and 0.1 points, respectively.

Firms’ owners in Gaza Strip indicated a decrease in production and sale levels, against an increase in the inventory level. Moreover, their expectations were positive about production and employment levels for the next three months.

PMA Business Cycle Index (point)*

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

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