The Palestine Monetary Authority (PMA) forecasted that the growth rate is going to slightly decline to 3.3% in 2016, in comparison with a growth rate of 3.5% in 2015.

According to the PMA’s annual report, per capita income is to increase by 0.9%, in comparison with last year’s rate of 0.5%.

These projections were founded on a set of assumptions, including lack of significant changes in the political and economic conditions in Palestine since 2015, particularly lack of progress on the political track and the continuation of restrictions on movement of people and goods (Palestinian labor in Israel and internal and external trade). Additionally, the government will continue to follow a fiscal austerity policy and implement current-expenditure rationing, while growth in government revenue and expenditures remains relatively unchanged at previous-year levels.

(Palestine Economy Portal)