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Palestine economy to grow by 8.1% in 2015

Palestine economy to grow by 8.1% in 2015
According to Economic Forecasts Report 2015 issued by the Palestine Monetary Authority (PMA), the Palestinian economy has witnessed further deterioration, especially in the second half of 2014.

Palestine’s real growth rate slashed by 2.7% accompanied by a drop in real per capita income by around 5.5%, according to PMA report.

PMA estimates show an increase in unemployment rates to approximately 29.0% of labor force in 2014, compared to 23.4% in 2013. The inflation rate also rose to 2.0% in 2014 compared to 1.7% in 2013.

In addition, PMA expects real gross domestic product (GDP) to grow by 2.9% in 2015 compared to 2014, thus pushing real per capita income up by 0.2% for the same comparison period.

Total final consumption is expected to rise by approximately 6.8%. Total investment will also grow by around 15.5% in 2015, according to PMA forecasts.

Palestinian exports are anticipated to register an increase by around 22.7 % and imports by 22.4% in 2015 when compared to 2014.

Furthermore, unemployment is projected to decline to around 27% of labor force, in light of the expected 2015 growth. The general price level is also expected to be around the levels of past years at 1.8% in 2015 against 2.0% in 2014.

The Palestinian economy is expected to grow by 8.1% in 2015 in case the political situation improves and the flow of grants remains constant and regular, according to PMA.

On the other hand, PMA expects a retraction in real growth by 3.9% in 2015 compared to 2014, if political and security conditions witness a sharp deterioration. Real GDP per capita is also projected to decline by 6.7%.

As a result, unemployment rates will be pushed up to around 31% of labor force in 2015.

Photo Credit: Arabianeye-Reuters