The West Bank - the larger of the two areas comprising the Palestinian Authority (PA) - has experienced a general decline in economic conditions since the second intifada began in September 2000. The downturn has been largely a result of Israeli closure policies - the imposition of closures and access restrictions in response to security concerns in Israel - which disrupted labor and trading relationships. In 2001, and even more severely in 2002, Israeli military measures in PA areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. International aid of at least $1.14 billion to the West Bank and Gaza Strip in 2004 prevented the complete collapse of the economy and allowed some reforms in the government's financial operations. In 2005, high unemployment and limited trade opportunities - due to continued closures both within the West Bank and externally - stymied growth. Israel's and the international community's financial embargo of the PA when HAMAS ran the PA during March 2006 - June 2007 interrupted the provision of PA social services and the payment of PA salaries. Since then the FAYYAD government in the West Bank has restarted salary payments and the provision of services but would be unable to operate absent high levels of international assistance.
GDP (purchasing power parity):
$11.95 billion (2008 est.) country comparison to the world: 142 note: data are in 2008 US dollars
GDP (official exchange rate):
$6.641 billion (2008 est.) (2008 est.)
GDP - real growth rate:
0.8% (2008 est.) country comparison to the world: 185
GDP - per capita (PPP):
$2,900 (2008 est.) country comparison to the world: 166 note: data are in 2008 US dollars
GDP - composition by sector: