Fiscal Crisis, Economic Prospects

World Bank

Fiscal Crisis, Economic Prospects

Autores

World Bank

Editor

World Bank, Washington, DC

Descripción

Economic growth in West Bank and Gaza (WB&G) slowed in the first quarter (Q1) of 2012. The real growth rate is estimated to have reached 5.6 percent, more than three percentage points lower than the Q1 2011 growth figure and almost one percent lower than the growth forecast contained in the Palestinian Authority's (PA's) budget. This decline is attributed to a major slowdown in Gaza, where real growth decreased from 21.3 percent to 6 percent on a year-on-year basis. The slowdown in Gaza during Q1 of 2012 was mainly attributed to a major decline in the agriculture and fishing sector, which offset much of the growth witnessed in other sectors. This sector shrank by 43 percent in Q1 2012 due to frequent power outages resulting from the lack of fuel in Gaza. Nevertheless, other sectors in Gaza expanded and the highest growth levels were witnessed in the construction, and hotels and restaurants sectors. In the West Bank, growth in Q1 2012 was broadly unchanged from its 2011 level. Most of the growth was from an expansion of services, which contributed around 2.2 percentage points of the 5.4 percent total growth in Q1 2012. The recent slowdown in economic growth is also reflected in higher unemployment levels. Overall unemployment in WB&G was 20.9 percent in the second quarter of 2012 compared to 18.7 percent during the same period in 2011. A serious concern in WB&G is the high level of youth unemployment that is accompanied by low youth participation in the labor force.

Palabras clave

ACCESS TO RESOURCES, ADVANCED TECHNOLOGIES, AGRICULTURAL PRODUCTS, AIR, AIR TRAVEL, ANTI-MONEY LAUNDERING, APPLICATION PROCESS, ARCHAEOLOGICAL SITES, ARREARS, BANK HOLDING, BANK OF ISRAEL, BANKING SECTOR, BANKING SYSTEM, BANKS, BINDING CONSTRAINT, BONDED WAREHOUSES, BORROWING, BUDGET DEFICIT, BUSINESS OPPORTUNITIES, BUSINESSES, BUYER, CAPABILITIES, CAPABILITY, CAPITAL EXPENDITURES, CAR, CARRIERS, CASH TRANSFER, CELL PHONES, CENTRAL BANK, CIVIL SERVICE, COLLECTION PROCESS, COMMUNICATION SERVICES, COMPETITIVENESS, CONGESTION, CONSUMER GOODS, CREDIBILITY, CREDIT FACILITIES, CROSSING, CROSSINGS, CUSTOMER BASE, CUSTOMS, DEBT, DEPOSIT, DEPOSIT INSURANCE, DISPARITIES IN ACCESS, DONOR FUNDING, DONOR SUPPORT, DRIVING, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIES OF SCALE, ELECTRICITY, EMPLOYMENT, EXCHANGE RATE, EXCISE TAX, EXPENDITURE, EXPLOITATION, EXPORT MARKETS, FARMERS, FINANCIAL INTERMEDIATION, FINANCIAL SUPPORT, FINANCING NEED, FISCAL REFORM, FISCAL REFORMS, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTORS, FORMAL BANKING, FUEL, GEOGRAPHICAL AREAS, GROSS DOMESTIC PRODUCT, GROWTH POTENTIAL, HIGH INTEREST RATES, HOUSEHOLDS, HOUSING, IMPORT DUTIES, INCOME CATEGORIES, INCOME TAX, INDUSTRIAL DEVELOPMENT, INDUSTRIAL ENTERPRISES, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE PROJECTS, INSTITUTION, INSTITUTIONAL CAPACITY, INSURANCE, INTEREST RATES, INTERNATIONAL DEVELOPMENT, INTERNATIONAL MARKETS, INTERNATIONAL STANDARDS, INVESTMENT FUND, JOB CREATION, JOB OPPORTUNITIES, JOINT VENTURES, LABOR FORCE PARTICIPATION, LABOR FORCE SURVEY, LACK OF ACCESS, LAND ADMINISTRATION, LAND DEVELOPMENT, LAND REGISTRATION, LAWS, LEGISLATIVE FRAMEWORK, LICENSE, LOAN, LOAN DELINQUENCY, LOAN-TO-DEPOSIT RATIO, LOCAL DEBT, LOCAL GOVERNMENTS, MANUFACTURING, MATERIAL, MEDIUM ENTERPRISE, MEDIUM ENTERPRISES, MONETARY AUTHORITY, MONETARY FUND, MUNICIPALITIES, NATURAL RESOURCES, NEIGHBORHOODS, NETWORKS, NONPERFORMING LOANS, PAYMENT OF WAGES, PAYMENT SYSTEM, PENSION, PENSION SYSTEM, PENSIONS, PERSONAL BANKING, PERSONAL COMMUNICATION, PHONE, PLEDGES, POLITICAL RISKS, PORTFOLIOS, PRIVATE INVESTMENT, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR FIRMS, PRIVATE SECTOR INVESTMENT, PRIVATE VEHICLES, PROJECT MANAGEMENT, PROPERTY TAX, PUBLIC ADMINISTRATION, QUALITY OF SERVICE, REAL ESTATE, RECEIPTS, RECURRENT DEFICIT, RECURRENT EXPENDITURE, RESERVES, RESULT, RESULTS, RETAIL TRADE, RETURN, ROAD, ROAD NETWORK, ROADS, ROUTE, SAFETY, SAVINGS, SETTLEMENT, SMALL ENTERPRISES, SMART PHONES, SOURCE OF INCOME, SUPERVISION, TAX ADMINISTRATION, TAX COLLECTIONS, TAX RATE, TECHNICAL ASSISTANCE, TELECOM, TELECOMMUNICATIONS, TELECOMMUNICATIONS COMPANIES, TELECOMMUNICATIONS INDUSTRY, TELECOMMUNICATIONS INFRASTRUCTURE, TELECOMMUNICATIONS SYSTEM, TERM CREDIT, TRANSFER PAYMENT, TRANSFER PAYMENTS, TRANSMISSION, TRANSPORT, TRANSPORTATION, TRANSPORTATION COSTS, TRAVEL TIME, TREASURY, TUNNELS, UNDERGROUND, UNEMPLOYMENT, VILLAGES, WAGES, WAREHOUSES, WEB, WIRELESS COMMUNICATIONS