Pessimism over Palestinian economy
Palestine, Economics, 4/27/2006

Palestinian Central Bureau of Statistics (PCBS) revealed pessimism in the perception of the owners/managers of the industrial establishments in the short-term and mid-term expectations towards the economic conditions in general and continued decline in different indicators.

According to the main Findings of the Survey on the Perception of the Owners/Managers the levels of optimism of the Industrial Establishments Towards the Economic Conditions, PCBS said Thursday that the percentage of whom is expecting improvements on the establishment's situation declined by 45.8% during March 2006 compared with 21.4% during February 2006 (Base month is January 2005).

The survey conducted to give an overview on the perception of the owners/managers of the Industrial establishments about the economic conditions. Data collection took place during the period 2-22/4/2005 on a sample composed of 269 establishments.

PCBS added that the percentage of whom is expecting higher level of employment declined by 71.7% during March 2006 compared with an declining by 52.3% during February 2006 (Base month is January 2005).

"Decreasing were reported on the perceptions of the managers whom expecting higher volumes of sales as it was declined by 63.6% during March 2006 compared with a decline by 43.0% during February 2006," it said.

"As for the establishment situation 36.2% of the target group expect better situation during the next six month while this percentage was 25.3% for the next month expectation," PCBS said. "29.8% of the owners were optimistic in their expectations about the volumes of the sales for the mid-term expectation, meanwhile this percent was 16.6% for the next month."

"14.1% of the owners were optimistic in their expectations about increasing the level of employment for the mid-term expectation, meanwhile this percent was 10.6% for the next month," it added.

Regarding the mid-term expectations, PCBS said that 40.5% of the owners were optimistic in their mid-term expectations for the establishment situation in Gaza Strip, meanwhile this percent was 34.4% in Remaining West Bank (The West Bank except for those parts of Jerusalem, which were annexed after 1967 occupation by Israel).

"23.3% expect increases in the volume of sales over the mid-term expectation in Gaza Strip compared with 32.5% in Remaining West Bank," it said. "31.5% of the owners were optimistic in their expectations about increasing the level of employment in Gaza Strip, meanwhile this percent was 6.8% in Remaining West Bank."

PCBS mentioned that sales level stability or decline were different in Gaza Strip compared to the expectations of the owners in Remaining West Bank, which can appear from the following:

- 65.9% of the owners in Gaza Strip reported that the political and security situations and the check points are the main reasons affecting the level of sales, while it was 23.4% in Remaining West Bank.

- 51.2% of the owners/ managers of the industrial establishments in Remaining West Bank reported that the declining in the purchasing power as the main reason affecting the level of sales, while it was 21.1% in Gaza strip.

- 19.9% of the owners/ managers of the industrial establishments in Remaining West Bank reported that the Obstacles in marketing as the main reason affecting the level of sales while it was 4.8% in Gaza strip.

- 8.2% of the owners/ mangers of the industrial establishments in Gaza strip reported that the difficulties in obtaining needed row materials or inputs as the main reason affecting the sales level without any opinions reported that in Remaining West Bank.

Previous Stories:
  EU says aid suspension not hostile act against Palestinians   (4/24/2006)
  US welcome of European aid to the Palestinians   (2/28/2006)
  About 120 million euros in aid to Palestinians   (2/27/2006)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search