The PMA Business Cycle Index (PMABCI) – March 2023 Significant improvement in the West Bank and Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed that the overall index for Palestine significantly increased from 5.6 points in February to 14.9 points in March, after improving in both West Bank and Gaza Strip.

The overall index in the West Bank increased from 8.6 points in February to 17.0 points in March, due to a notable improvement in the manufacturing index (from 2.2 to 7.8), the construction index (from 0.0 to 1.9), in addition to an increase in the agriculture index (from 3.6 to 4.9), and the trade index increased (from 1.0 to 1.5). Whereas the transportation and storage index decreased (from 0.9 to 0.0), and the renewable energy, and IT and communications indices remain stable at around 0.7 point and 0.3 point, respectively.

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

In Gaza Strip, the overall index significantly improved from -9.9 points in February to 4.4 points in March. As the agriculture index increased (from 4.8 to 13.2), the trade index (from -11.5 to -5.7), the manufacturing index (from 1.2 to 1.8), in addition to an increase in the renewable energy index (from -3.2 to -2.1). On the contrary, the construction index decreased (from -2.6 to -3.3), and the transportation and storage index decreased (from 1.5 to 0.8). Whereas, the IT and communications index remains stable at around -0.3 points.

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

PMA Business Cycle Index (point)*

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

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

** Estimated value for Gaza Strip.