COUNTRY PROFILES

Palestine

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Palestine – background information

General Information on Palestine

The Palestinian economy still is depended to the Israeli one, the Palestinian trade is with Israel and the revenue from the remittances of the workers in the Israel remains significant. Per capita income of the Palestine dropped 25% between 1993 and 2000, unemployment rose from 18% to 32% and investment fell to about 10-12% of GDP despite the positive prospects of the self-rule agreement. The Palestinian economy faced a GNP decline in 1999 and 2000 of 3,4% and 3,0%, respectively.

The Interim Association Agreement on trade and co-operation between the European Community and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority was signed on 24 February 1997. Its main objective is to create a free-trade area between the European Union and the West Bank and Gaza Strip by the year 2001 and to establish a comprehensive framework for political, trade, economic and financial co-operation. The Agreement entered into force on 1 July 1997. [1,9,11]