INSTITUTE OF MANAGEMENT STUDIES

PROJECT ON

BALANCE OF PAYMENT OF WEST BANK COUNTRY

Submitted To:Dr. Alpana Trehan

Submitted By:Jublee Surana 3rd semester MBA (FA)

The Income payments (BoP; US dollar) in West Bank and Gaza was 43696745.26 in 2009, according to a World Bank report, published in 2010. Income payments refer to employee compensation paid to nonresident workers and investment income (payments on direct investment, portfolio investment, other investments). Income derived from the use of intangible assets is excluded from income and recorded under business services. Data are in current U.S. dollars.This page includes a historical data chart, news and forecasts for Income payments (BoP; US dollar) in West Bank and Gaza.

Credit Registries in West Bank and Gaza and Sudan

METAC short term expert, Mr. Jim Aziz, conducted two missions to West Bank and Gaza (WBG) and Sudan. The mission to the WBG aimed to conduct a final assessment of the credit registry at the Palestine Monetary Authority (PMA) in line with international standards and best practices. The PMA credit registry has incorporated many additional features like credit scoring and consumers rights protection and is considered one of the best in the region. The mission to Sudan was to follow up on the implementation of the credit registry at the Central Bank of Sudan (CBOS). The CBOS credit registry project is in its final stage. The current mission aimed to review the status of the credit registry software implementation and the pending issues pertaining to data quality, in addition to providing additional recommendations to further upgrade the credit registry in line with

international standards and best practices

FAD and METAC in West Bank and Gaza

At the request of Dr. Salam Fayyad, Prime Minister and Minister of Finance of the Palestine National Authority, Mr. David Webber, METAC short term expert, participated in a diagnostic mission to WBG from December 1 to 12, 2011 led by the IMF Fiscal Affairs Department (FAD).The mission assessed overall progress in the implementation of the Public Financial Management (PFM) reform agenda that was agreed in 2009 and further updated in 2010. The mission also recommended an updated framework for PFM reforms for the period 2012-2014 and provided further strategic advice on advancing the reform process across the four main pillars: (i) legal and regulatory framework for PFM; (ii) budget integration reforms; (iii) PFM infrastructure reforms; and (iv) external accountability

Balance of Payments Statistics West Bank and Gaza

As part of METACs work program, Mr. Jean Galand, METAC Statistics Advisor, conducted a technical assistance (TA) mission on external statistics in Ramallah, West Bank and Gaza, from November 27 to December 1, 2011 to: (i) review the first recently compiled international investment position (IIP) statement; (ii) discuss the implementation of previous recommendations on the compilation of remittances and the classification of current and capital transfers; and (iii) assess TA needs for the WBGs intended subscription to the Special Data Dissemination Standard (SDDS).

ESCWA Expert Group Meeting

On December 16, 2011, Mr. Chami, METAC Coordinator, participated in an ESCWA expert group meeting to review the Survey of Economic and Social Developments in the ESCWA Region. It was an opportunity to discuss the draft report and provide some recommendations and suggestions on various chapters dealing with a range of economic and social issues that are relevant to policymakers in the region

Previous Changes in net reserves (BoP; US dollar) in West Bank and Gaza

Last

View Chart Communications; computer; etc. (% of service exports; BoP) in West View 41.1 42.4 Bank and Gaza Chart View Current account balance (BoP; US dollar) in West Bank and Gaza 248895718.8 764305435.8 Chart View Current account balance (% of GDP) in West Bank and Gaza Chart View Current transfers; receipts (BoP; US dollar) in West Bank and Gaza 3052323944.8 3572749031.2 Chart View Exports of goods and services (BoP; US dollar) in West Bank and Gaza 992690115.2 1164486698.8 Chart Exports of goods; services and income (BoP; US dollar) in West Bank View 1766318693.4 2087065867.8 and Gaza Chart Exports of goods; services; income and workers' remittances (BoP; US View 1720326056.4 dollar) in West Bank and Gaza Chart View Foreign direct investment; net (BoP; US dollar) in West Bank and Gaza 36339777.7 59786039.2 Chart Foreign direct investment; net inflows (BoP; US dollar) in West Bank View 28296000.0 51508000.0 and Gaza Chart Foreign direct investment; net inflows (% of GDP) in West Bank and View Gaza Chart Foreign direct investment; net outflows (% of GDP) in West Bank and View Gaza Chart View Goods exports (BoP; US dollar) in West Bank and Gaza 623243484.0 668388677.9 Chart View Goods imports (BoP; US dollar) in West Bank and Gaza 3683744964.7 3902817563.5 Chart View Imports of goods and services (BoP; US dollar) in West Bank and Gaza 4424654115.9 4739237247.5 Chart Imports of goods; services and income (BoP; US dollar) in West Bank View 4432579070.6 4742612546.8 and Gaza Chart View Income payments (BoP; US dollar) in West Bank and Gaza 7924954.7 3375299.4 Chart View Income receipts (BoP; US dollar) in West Bank and Gaza 773628578.2 922579169.0 Chart Insurance and financial services (% of service imports; BoP) in West View 1.5 1.1 Bank and Gaza Chart -91280000.0 -533800000.0

Net capital account (BoP; US dollar) in West Bank and Gaza Net current transfers (BoP; US dollar) in West Bank and Gaza Net errors and omissions; adjusted (BoP; US dollar) in West Bank and Gaza Net income (BoP; US dollar) in West Bank and Gaza Net trade in goods and services (BoP; US dollar) in West Bank and Gaza Net trade in goods (BoP; US dollar) in West Bank and Gaza Portfolio equity; net inflows (BoP; US dollar) in West Bank and Gaza Portfolio investment; excluding LCFAR (BoP; US dollar) in West Bank and Gaza Royalty and license fees; payments (BoP; US dollar) in West Bank and Gaza Royalty and license fees; receipts (BoP; US dollar) in West Bank and Gaza Service exports (BoP; US dollar) in West Bank and Gaza Service imports (BoP; US dollar) in West Bank and Gaza Trade in services (% of GDP) in West Bank and Gaza Transport services (% of service exports; BoP) in West Bank and Gaza Transport services (% of service imports; BoP) in West Bank and Gaza Travel services (% of service exports; BoP) in West Bank and Gaza Travel services (% of service imports; BoP) in West Bank and Gaza Workers' remittances and compensation of employees; paid (US dollar) in West Bank and Gaza Workers' remittances and compensation of employees; received (% of GDP) in West Bank and Gaza Workers' remittances and compensation of employees; received (US dollar) in West Bank and Gaza Workers' remittances; receipts (BoP; US dollar) in West Bank and Gaza

View Chart View 2915156096.0 3419852114.9 Chart View -506944186.7 -243204726.1 Chart View 765703623.5 919203869.6 Chart View 3431964000.7 3574750548.7 Chart View 3060501480.8 3234428885.6 Chart View 0.0 0.0 Chart View -130718008.8 -24673877.5 Chart View 1296000.0 900000.0 Chart View 30000.0 Chart View 369446631.2 496098020.9 Chart View 740909151.2 836419683.9 Chart View Chart View 1.5 3.3 Chart View 10.5 7.6 Chart View 57.4 54.3 Chart View 58.9 64.0 Chart View 8941147.8 9394653.3 Chart View Chart View 1084924805.0 1227916870.0 Chart View 474663855.0 467570433.9 Chart 402797143.5 400121402.4

PALESTINE GDP PER CAPITA PPP

The Gross Domestic Product per capita in Palestine was last recorded at 2465.10 US dollars in 2005, when adjusted by purchasing power parity (PPP). The GDP per Capita, in Palestine, when adjusted by Purchasing Power Parity is equivalent to 11 percent of the world's average. GDP per capita PPP in Palestine is reported by the World Bank. Historically, from 1994 until 2005, Palestine GDP per capita PPP averaged 2485.7 USD reaching an all time high of 3041.8 USD in December of 1999 and a record low of 2105.5 USD in December of 2002. The GDP per capita PPP is obtained by dividing the countrys gross domestic product, adjusted by purchasing power parity, by the total population. This page includes a chart with historical data for GDP per capita PPP in Palestine.

PALESTINE GDP ANNUAL GROWTH RATE The Gross Domestic Product (GDP) in Palestine expanded 7.75 percent in the second quarter of 2012 over the same quarter of the previous year. GDP Annual Growth Rate in Palestine is reported by the Palestinian Central Bureau of Statistics. Historically, from 2001 until 2012, Palestine GDP Annual Growth Rate averaged 4.6 Percent reaching an all time high of 26.0 Percent in September of 2003 and a record low of -21.6 Percent in December of 2006. The Palestinian territories (West Bank and Gaza) have been occupied by Israel since the Six-Day war in 1967. As such, Palestinian economy is dependent on Israel as it controls the movement of goods and labour and retains customs revenues. As a result, production capacity and access to natural resources has been significantly reduced and services are by far the most important sector of the economy (nearly 83 percent of GDP). Palestine remains heavily dependent on foreign aid to support the governments budget and fund infrastructure development. Nonetheless, in recent months, Palestinian National Authority's efforts to ease tensions with Israel have resulted in growth returning to Palestine. Yet, the growth cannot be sustainable without addressing security problems and high unemployment rate among young people. This page includes a chart with historical data for GDP Annual Growth Rate in Palestine.

PALESTINE BALANCE OF TRADE Palestine recorded a trade deficit of 299.90 Thousand USD in August of 2012. Balance of Trade in Palestine is reported by the Palestinian Central Bureau of Statistics. Historically, from 2001 until 2012, Palestine Balance of Trade averaged -207.9 Thousand USD reaching an all time high of -66.8 Thousand USD in April of 2002 and a record low of -429.1 Thousand USD in March of 2011. Palestine reports chronic trade deficits due to the territories' inability to access key resources and because of the mobility restrictions imposed by Israel. Palestine mainly exports cement, base metals, iron and steel, food and beverages, furniture, plastics and dairy products. Palestine mainly imports oil, food, vegetables, machinery, metals, vehicles, chemicals, livestock, beverages and salt. Palestine's main trading partner is Israel (accounting for around 74 percent of total trade). Other trading partners include China, Turkey, Germany, Italy and France. . This page includes a chart with historical data for Balance of Trade in Palestine.

PALESTINE CURRENT ACCOUNT TO GDP

Palestine recorded a Current Account deficit of 24.30 percent of the country's Gross Domestic Product in 2011. Current Account to GDP in Palestine is reported by the Palestine Monetary Authority. Historically, from 1998 until 2011, Palestine Current Account to GDP averaged -19.9 Percent reaching an all time high of -8.1 Percent in December of 2007 and a record low of -35.0 Percent in December of 1999. The Current account balance as a percent of GDP provides an indication on the level of international competitiveness of a country. Usually, countries recording a strong current account surplus have an economy heavily dependent on exports revenues, with high savings ratings but weak domestic demand. On the other hand, countries recording a current account deficit have strong imports, a low saving rates and high personal consumption rates as a percentage of disposable incomes. This page includes a chart with historical data for Current Account to GDP in Palestine.

PALESTINE EXPORTS
Exports in Palestine decreased to 57.30 Thousand USD in August of 2012 from 61.60 Thousand USD in July of 2012. Exports in Palestine is reported by the Palestinian Central Bureau of Statistics. Historically, from 2001 until 2012, Palestine Exports averaged 36.9 Thousand USD reaching an all time high of 72.9 Thousand USD in June of 2011 and a record low of 15.9 Thousand USD in April of 2002. Palestine mainly exports cement, base metals, iron and steel, food and beverages, furniture, plastics and dairy products. Palestine's main exports partner is Israel (over 80 percent of total exports). Other export partners include Jordan, the United Arab Emirates, Algeria, Egypt, Saudi Arabia, the Netherlands, Germany, and Canada. . This page includes a chart with historical data for Exports in Palestine.

PALESTINE IMPORTS Imports in Palestine decreased to 357.20 Thousand USD in August of 2012 from 367.50 Thousand USD in July of 2012. Imports in Palestine is reported by the Palestinian Central Bureau of Statistics. Historically, from 2001 until 2012, Palestine Imports averaged 244.7 Thousand USD reaching an all time high of 497.4 Thousand USD in March of 2011 and a record low of 82.7 Thousand USD in April of 2002. Palestine mainly imports oil, food, vegetables, machinery, metals, vehicles, chemicals, livestock, beverages and salt. Palestine's main imports partner is Israel (over 70 percent of total imports). Other imports partners include China, Turkey, Germany, Italy, France and the United States. . This page includes a chart with historical data for Imports in Palestine.

PALESTINE GOVERNMENT BUDGET Palestine recorded a Government Budget surplus equal to 4.30 percent of the country's Gross Domestic Product in 2011. Government Budget in Palestine is reported by the Palestine Monetary Authority. Historically, from 1999 until 2011, Palestine Government Budget averaged 8.7 Percent of GDP reaching an all time high of 22.0 Percent of GDP in December of 2006 and a record low of 0.0 Percent of GDP in December of 2000. Government Budget is an itemized accounting of the payments received by government (taxes and other fees) and the payments made by government (purchases and transfer payments). A budget deficit occurs when an government spends more money than it takes in. The opposite of a budget deficit is a budget surplus. This page includes a chart with historical data for Government Budget in Palestine.

PALESTINE GOVERNMENT DEBT TO GDP Palestine recorded a Government Debt to GDP of 25.20 percent of the country's Gross Domestic Product in 2011. Government Debt To GDP in Palestine is reported by the Palestine Monetary Authority. Historically, from 1999 until 2011, Palestine Government Debt To GDP averaged 22.8 Percent reaching an all time high of 28.0 Percent in December of 2007 and a record low of 9.4 Percent in December of 1999. Generally, Government debt as a percent of GDP is used by investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. This page includes a chart with historical data for Government Debt To GDP in Palestine.