Palestinian Authority reports large increase in industrial production

The Palestinian Authority (PA) today announced a large increase in its industrial production last year. 

The Palestinian industrial production index rose 14% in 2021, the PA’s official WAFA news agency reported. 

An industrial production index measures an area’s output in the manufacturing, mining and energy sectors. 

Several sectors grew in the Palestinian Territories last year. Water supply, sewage and waste management activities rose by 32 percent. Manufacturing increased by 16 percent. Mining went up by 8.5 percent, while electricity, gas, steam and air conditioning increased nearly 6 percent, according to WAFA. 

The Palestinian economy is very much tied to the Israeli-Palestinian conflict. Relations between the PA and the Israeli government improved last year, as evident in Israel granting a $155 million loan to the authority. Last month, the PA reported an increase in trade with Israel. 

In terms of month-to-month economic activity, the Palestinian industrial production index fell 0.3 percent from November to December in 2021, according to WAFA.