The PMA Business Cycle Index (PMABCI) – April 2023

A drop in the West Bank and a slight improvement in Gaza Strip

The results of the PMA Business Cycle Index (PMABCI) revealed a decline in the overall index for Palestine from 14.9 points in March to 13 points in April, as a result of its decrease in the West Bank.

The overall index in the West Bank decreased from 17 points in March to 14.6 points in April, due to a decrease in the manufacturing index (from 7.8 to 5.3), the agriculture index (from 4.9 to 3.1), and the renewable energy index (from 0.7 to 0.0). While on the other hand, the construction index has improved (from 1.9 to 2.6), in addition to an increase in the trade index (from 1.5 to 2.2), and the transportation and storage index (from 0.0 to 1.5). At the same time, the IT and communications index stabilized at around -0.1 points.

Firms’ owners in the West Bank indicated a decrease in production levels, compared to an increase in sales and inventory levels during April. Their expectations were negative about production and employment levels for the next three months.

In Gaza Strip, the overall index marginally improved to around 4.6 points in April, compared to 4.4 points in March, affected by the improvement in the manufacturing index (from 1.8 to 2.6), construction index increased (from -3.3 to -2.6), in addition to an increase in trade index (from -5.7 to -3.5). On the contrary, the agriculture index decreased (from 13.2 to 9.6), while the renewable energy index stabilized at around -1.6 points, the transportation and storage, and the IT and communications indices were stabilized at around 0.4 points, and -0.2 points, respectively.

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

PMA Business Cycle Index (point)*

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

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

** Estimated value for Gaza Strip.