PMA Business Cycle Index (PMABCI) – December 2024

Continued decline in the overall index

The results of the PMA Business Cycle Index (PMABCI) revealed a decline in the overall index in Palestine to approximately -32.3 points during December 2024, compared to -28.4 points in November 2024. This decline is attributed to the ongoing uncertainty in the region amid unprecedented Israeli aggression against Gaza and the West Bank.

The data showed that the West Bank index stabilized at around -23.5 points in December 2024, compared to -24.4 points in November 2024. The industry sub-index improved (from -6.9 to -5.5), as did construction (-6.0 to -4.3), and trade (-6.9 to -8.2), while the transport and storage sub-index dropped (from -0.8 to -1.2). The agriculture sub-index remained steady at -2.7 points, renewable energy at -0.7 points, and the communications and information technology sub-index at -0.9 points.

In general, business owners in the West Bank reported a decline in production levels, increased sales, and a reduced inventory. However, their outlook for production levels over the next three months was positive.

As for Gaza, the ongoing Israeli aggression has caused numerous adverse effects. Given the difficult economic conditions, the index for Gaza is expected to remain at its lowest level, around -100 points, during the period of Israeli aggression that has persisted since early October 2023 until the time of this report's preparation.