Although the Gaza border has been relatively quiet since the mid-2014 war between Israel and Hamas, violence could easily flare up again. There is little prospect of a resumption of peace talks with Israel.
The West Bank's economy will be sluggish, as continued Israeli closure measures crimp the economy's growth potential and the PA's finances remain unstable given periodic Israeli tax transfer freezes and donor fatigue.
We forecast that after contracting for the first time in eight years in 2014 the Palestinian economy will grow by 1.8% in 2015 and 6.5% in 2016.

Summary 7

Basic data 8

Political structure 9

Economic structure 10

Annual indicators 10

Quarterly indicators 11

Comparative economic indicators 12

Outlook for 2014-15 13

Political outlook 13

Democracy index 15

Economic policy outlook 16

Economic forecast 17

Recent analysis 20

Politics 20

Economy 26

Forecast summary 19

Gross domestic product 19

Consumer price inflation 19

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