The Palestinian Territories is a small economy (estimated GDP of USD 14.6 billion in 2019 at current prices), divided into three distinct markets both physically and politically (West Bank, East Jerusalem, Gaza Strip). As a result of these constraints and high population growth, GDP per capita is low compared to neighbouring countries (estimated at USD 2 934 in 2019; over USD 4 000 in the West Bank and less than USD 2 000 in Gaza).

The particular situation of the Palestinian Territories, divided, with precarious conditions of access and movement, makes the economy partly dependent on external financing provided by remittances from the diaspora, the income of Palestinians working in Israel, and multilateral and bilateral donors. 

Despite this, the Palestinian private sector is talented and entrepreneurial. Palestinian companies have a reputation for providing quality products and a high degree of professionalism. Major Palestinian companies have international contacts with partnerships in Asia, Europe, the Gulf States and the US. However, geopolitical instability and its consequences continue to have a negative effect on the private sector. The de facto Hamas government in Gaza, designated as a terrorist organisation, combined with Israeli government restrictions, severely limit opportunities for the private sector in Gaza.

*Disclaimer: Belgium stands firm against colonization and all measures imposed under colonization, as well as any impediment to a peaceful and secure coexistence of an independent, democratic, united, sovereign and viable Palestinian state with an Israeli state, each acknowledging the other’s legitimacy. (source : diplomatie.belgium)