Prolonged Crisis in the Occupied Palestinian Territory: Recent Socio-Economic Developments

The occupied Palestinian territory (oPt) suffered sharp economic regression in 2006, the worst performance since 2002, reversing the growth trend of the previous three years. Real GDP in 2006 remained about 9 percent below its 1999 level while per capita GDP—a widely used measure of average income—was about 30 percent below its 1999 level. In the sub-regional neighbourhood consisting of Egypt, Jordan, Syria, Lebanon and Israel, the oPt has had the weakest performing economy for most of the past decade. Per capita GDP in Egypt, Jordan and Syria registered double-digit growth and nearly 10 percent growth in Israel in the past seven years. In Lebanon, per capita GDP in 2006 was about 2.6 percent below its 1999 level, almost entirely due to the effects of the 2006 war. Since 2002, the oPt has replaced Egypt as the country with the lowest per capita GDP in the sub-region.