The Palestinian Monetary Authority (PMA) and the Palestinian Central Bureau of Statistics (PCBS) jointly issued a press release on the performance of the economy in 2021 as well as the economic forecast for 2022.
According to the statement, the economy returned to growth as of the spring (with GDP contracting another 6% in the first quarter of 2021), to end 2021 up 6%. Economic dynamics are driven by improving the level of aggregate demand, consumption and investment, while remaining below its pre-pandemic level. Per capita GDP, for its part, increased by 3.5%.
Most economic activities experienced an increase in value added during the year 2021 compared to the year 2020. The construction sector recorded the highest growth (8%), while industrial activity rose 5.5%, followed by services, up 5%.
The first estimates indicated an increase in the value of exports of 13% compared to 2020. The value of imports grew by 11% during the same period, causing the trade balance deficit to increase by 10% per year. compared to the previous year.
According to these preliminary estimates, and due to the increase in the prices of raw materials and maritime transport, the average of the aggregate consumer price index in Palestine is expected to register an increase of 1.2% in 2021 compared to 2020.
What forecasts for 2022?
The PMA and the PCBS have also published two reports on economic forecasts for 2022. These scenarios are based on the assumption of a gradual return of economic activity to its pre-health crisis level, and of stability. economic and political relations with Israel.
Expectations are for growth to slow down to 3% in 2022, with a slight increase in per capita GDP compared to 2021. While domestic demand should remain strong, a fairly marked slowdown in export growth is expected. .
Source French Embassy in Lebanon