PCBS Report Shows Sharp Decline in Local Production of Palestinian Private Sector’s Enterprises.

Gaza: A report by the Palestinian Central Bureau of Statistics (PCBS) issued on Thursday has presented the reality of the Private and Non-Government Enterprises in Palestine in light of the ongoing Israeli occupation aggression on the Gaza Strip, showing a sharp decline in the local production of the private sector's enterprises and an unprecedented decline in employment rates within the economic sectors in 2024. According to Palestine News and Information Agency - WAFA, local production of the private sector's enterprises in Palestine decreased by 55% in 2024, with estimated losses reaching about USD 8 billion, not accounting for the severe destruction in assets, property, and infrastructure. The report highlighted a significant decline in local production in the West Bank, which recorded a 51% decrease, while Gaza Strip experienced an 84% drop. The construction sector emerged as one of the most affected economic sectors, with a 60% decrease in production (56% in the West Bank and 100% in Gaza Strip), fol lowed by industrial activity, which declined by 56% (52% in the West Bank and 86% in Gaza Strip). Internal trade and other services activities also saw a 54% reduction (51% in the West Bank and 78% in Gaza Strip). The report further indicated a sharp decline in employment rates in the private and non-government sectors in Palestine, which fell by about 24% during 2024 (20% in the West Bank and 82% in Gaza Strip). At the sectoral level, employment in the construction sector decreased by 29% (21% in the West Bank and 100% in Gaza Strip), while the industry sector saw a 28% reduction (22% in the West Bank and 83% in Gaza Strip). Employment in internal trade and other services sectors declined by 21% (15% in the West Bank and 75% in Gaza Strip). In 2023, 68% of the total number of employees in private and non-government enterprises in the West Bank were waged employees, with 325,500 employed persons in economic enterprises, marking a 6.7% decrease compared with 2022. The internal trade activity contributed the highest percentage of employment at 35.4%, followed by services activity at 31.4%, industry activity at 23.0%, and finance and insurance activities at 5.3%. Information and communications activities accounted for 2.1%, while transportation and storage activities and construction activities each contributed 1.6% and 1.2%, respectively. Industry activities constituted the highest value of output of the economic activities in the West Bank, with a total output value of USD 12,368.8 million-a 5.2% decrease compared with 2022. Industrial activities contributed 34.6% of the total output, followed by internal trade activities at 31.8% and services activities at 17.4%. Finance and insurance activities reached 9.8%, information and communications activities 4.1%, and construction and transportation and storage activities 1.4% and 0.9%, respectively. The report also noted a decrease of 4.9% in the value added of economic activities in the West Bank in 2023 compared with 2022. The total value added was USD 8,397.9 mil lion, with internal trade activities contributing the highest value added at 38.8%, followed by industry activities at 23.7%, services activities at 19.9%, finance and insurance activities at 10.7%, information and communications activities at 5%, construction at 1.0%, and transportation and storage at 0.9%.