The value and the growth of the Palestinian economy is predicted to exceed the economic output of Israel by 2030, according to an analysis by a Palestinian investment consultancy.
The analysis of Palestinian financial and development figures by the Palestinian Centre for Development Studies (PCDS) and the Israeli-funded Middle East Forum (MEF) predicts that in 2030 the Palestinian GDP will be around $10 billion higher than that of Israel, which has a population of about 1.6 million.
According to the PCDS, the growth in the Palestinian economic output will be driven by increased employment, exports, and investments.
However, the Palestinian Authority will continue to have a much lower economic output than that which Israel achieved in 2030, the analysis found.
The Palestinian economy was not able to meet the expectations of its citizens because of the financial crisis, which forced it to slash spending and cut its budget.
The PCDS report said the Palestinian government will have to find new ways to generate additional revenue, and this will be a challenge.
The economic growth will also be higher than anticipated in the past years, which will lead to the increase of the Palestinians’ debt and an increase in their debt burden.
According the PCS, the projected growth rate will reach 8% per year between 2020 and 2030.
The rise of the economy will be the main driver of the expansion of the West bank, according the report.
It said the expansion will increase the GDP by about $2 billion in 2030 and reach $3.5 billion by 2050.
Meanwhile, the Gaza Strip will have a higher GDP in 2030 than the PA.
In 2030, Gaza will have an economy of $7 billion, which is the equivalent of $1.7 billion of the PA’s GDP.
Gaza’s economy will grow by about 6% per annum between 2020-2025, while the PA will have about a 0.3% growth in that time, according PCDS.
The West Bank will have the highest growth of 7.5%, followed by East Jerusalem, which the report said will reach 7.1%.
The Gaza Strip’s GDP will reach $8.6 billion in 2020, followed by $2.8 billion for the West and East Jerusalem.
The GDP of the East Jerusalem region will grow about 1% per years.
The Gaza-based economic research institute, which also conducted the report, said the economic growth in Gaza will be about 5% in 2030.
Palestinian Prime Minister Salam Fayyad will be meeting Israeli Prime Minister Benjamin Netanyahu in the coming days to discuss the economic outlook and plans for the Gaza region.
Netanyahu has promised to increase Palestinian economic activity to 5% of the Gross Domestic Product (GDP) by 2020.
Palestinian Finance Minister Yasser Abed Rabbo said during a meeting with Israeli Finance Minister Naftali Bennett in Ramallah on Monday that the Gaza-area economy is not the only area of the Gaza strip that will grow.
“We know that in the West, the economic development will be higher and the economic activity will be much higher,” Abed said.
“But this region will not be a small area of this Gaza Strip, but a whole region.”