RAMALLAH, August 16, 2006 (WAFA) - Palestinian Central Bureau of Statistics (PCBS) said that in the second quarter 2006, the Gross Domestic Product (GDP) declined by 1.7% compared with the first quarter 2006.

In a press release, issued Wednesday, PCBS recorded "continuous decline in GDP during the second quarter 2006. The preliminary estimates at constant prices for the second quarter of 200 6 shows continuous decreases in the performance of the economy in Remaining West Bank (The West Bank except for those parts of Jerusalem, which were annexed after 1967 occupation by Israel) and Gaza Strip.

"At the same time the GDP estimates decrease during the first quarter of 2006 by 7.2% the second quarter shows a continuous decrease by 1.7% compared with the first quarter of the same year, and showed an increase of 1.7% compared to the second quarter of the year 2005 at constant prices," it mentioned.

PCBS added that "the preliminary estimates for the GDP per capita for Remaining West Bank and Gaza Strip during the second quarter was $299.1 which declined by 2.1% compared to the first quarter 2006 of the same year, while it showed a decrease of 1.8% compared to the same quarter of the year 2005.

The performance of different activities during the second quarter of the year 2006 compared to both the first quarter of the year 2006 and the same quarter of the previous year was as follows:

- The gross value added for Agriculture activity increased by 25.4% during the second quarter of 2006 in relation to the first quarter of the same year, while it decreased by 2.0% compared with the parallel quarter of the year 2005.

- The gross value added for Mining, manufacturing, water and electricity activities in Remaining West Bank and Gaza Strip declined during the second quarter 2006 compared to the first quarter of the same year by 1.8%, while it declined by 16.7% compared to the second quarter of the year 2005.

- The gross value added for Construction activity decreased by 1.1% during the second quarter of the year 2006 compared to the first quarter 2006, while it decreased by 18.8% compared to the same quarter of the year 2005.

- The gross value added for Transport decreased during the second quarter of the year 2006 by 5.9% compared to the first quarter of 2006, while it increased by 1.3% compared to the second quarter of the year 2006.

- The gross value added for Financial Intermediation activity decreased by 1.7% during the second quarter 2006 compared to the first quarter of the year 2006, while it increased by 4.4% compared to the second quarter of the year 2005.

- The gross value added increased for Wholesale and Retail Trade by 1.7% compared to the first quarter of the year 2005, however, when compared to the same quarter of the year 2005, this activity recorded a decrease by 0.5%.

- The gross value added for Education increased during the second quarter of the year 2006 by 2.6% compared to the first quarter of the same year, while it showed an increase of 17.0% compared to the second quarter of the year 2005.

- The gross value added for Hotels increased by 36.6% compared to the first quarter of the year 2006, and 50.6% compared to the parallel quarter of the year 2005.

- The gross value added for Real Estate, Renting and Business Services increased by 0.4% during the second quarter of the year 2006 compared to the first quarter of the same year, and 4.0% compared to the parallel quarter of the year 2005.

PCBS revealed that the percentage contribution for economic activity to the quarterly GDP were affected in short term (compared with first quarter 2006 and parallel quarter of the year 2005), where Agriculture activity decreased from (8.1%) in the second quarter of 2005 to (6.1%) in the first quarter of 2006, then it increased to (7.8%) in the second quarter of 2006.

Wholesale and Retail Trade activity decreased from (8.9%) in the second quarter of 2005 to (8.4%) in the first quarter of 2006, then it increased to (8.7%) in the second quarter of 2006.

It said that health and Social Work activity increased from (4.3%) in the second quarter of 2005 to (4.9%) in the first quarter of 2006, then this increases continued to reach (5.8%) in the second quarter of 2006, whereas Real estate, Renting and Business Services activity increased from (10.2%) in the second quarter of 2005 to (10.3%) in the first quarter of 2006, then this increases continued to reach (10.5%) in the second quarter of 2006.

"Public Administration and Defense activity increased from (16.8%) in the second quarter of 2005 to (21.6%) in the first quarter of 2006, then it increased to (22.2%) in the second quarter of 2006. Education activity increased from (7.7%) in the second quarter of 2005 to (8.9%) in the first and second quarters of 2006, and Financial intermediation activity increased from (4.3%) in the second quarter of 2005 to (4.4%) in the first and second quarters of 2006," PCBS said.

it said manufacturing activity decreased from (11.2%) in the second quarter of 2005 to (9.2%) in the first and second quarters of 2006, Electricity and water supply activity decreased from (1.7%) in the second quarter of 2005 to (1.4%) in the first quarter of 2006, then this decreases continued to reach (1.3%) in the second quarter of 2006.

PCBS concluded that Transport, Storage and Communications activity increased from (10.8%) in the second quarter of 2005 to (11.3%) in the first quarter of 2006, then it decreased to (10.8%) in the second quarter of 2006.

E.B. (12:46 P) (09:46 GMT)