RAMALLAH, February 25, 2007, (WAFA)- Palestinian Central Bureau of Statistics (PCBS) reported Sunday that the GDP declined in the Fourth Quarter 2006, by 11.6% compared with the third Quarter 2006.

In a Press Release issued today, PCBS said that presented a comparison with the previous quarter (Third Quarter 2006) and the parallel quarter of the previous year 2005 (Fourth Quarter 2005). It revealed that the preliminary estimates at constant prices for the fourth quarter of 2006 shows continuous decreases in the performance of the economy in Remaining West Bank and Gaza Strip.

It added that the GDP estimates decreased during the third quarter of 2006 by 6.9% based on the second revision for the data, the fourth quarter shows a continuous decrease by 11.6% compared with the third quarter of the same year, and showed a decrease of 21.2% compared to the fourth quarter of the year 2005 at constant prices.

The estimates refer also to decreases in the main economic activities within the available short term indicators for each activity. There were decreases in the Mining, Manufacturing, Electricity and water supply activity, Construction, Wholesale and Retail trade, Transport, Community, social and personal services, Real estate, Education, Hotels and Restaurants, Health and social work in addition to the Public administration and defense.

In addition, the preliminary estimates for the Gross Domestic Product per capita for Remaining West Bank and Gaza Strip during the fourth quarter 2006 was 246.7 US$ which declined by 12.4% compared to the third quarter of the same year, while it showed a decrease of 23.8% compared to the same quarter of the year 2005, PCBS said.

Regarding the main economic activities, PCBS said that the performance of different activities during the fourth quarter of the year 2006 compared to both the third 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 14.9% during the fourth quarter of 2006 in relation to the third quarter of the same year, while it increased by 20.7% compared with the parallel quarter of the year 2005. It noticed that the public sector strike durin the fourth quarter of the year 2006 leads to subestantial increase in the number of employees in agriculture sector accompanying by better harvest of olives.

The gross value added for Mining, manufacturing, water and electricity activities in Remaining West Bank and Gaza Strip declined during the fourth quarter 2006 compared to the third quarter of the same year by 7.8%, while it declined by 0.7% compared to the fourth quarter of the year 2005.

The gross value added for Construction activity decreased by 0.5% during the fourth quarter of the year 2006 compared to the third quarter 2006, while it decreased by 14.3% compared to the same quarter of the year 2005.

The gross value added for Transport decreased during the fourth quarter of the year 2006 by 1.5% compared to the third quarter of 2006. while it decreased by 1.0% compared to the fourth quarter of the year 2005.

The gross value added for Financial Intermediation activity recorded stability during the fourth quarter 2006 compared to the third quarter of the year 2006, while it decreased by 8.4% compared to the fourth quarter of the year 2005.

The gross value added decreased for Wholesale and Retail Trade by 8.9% compared to the third quarter of the year 2006, 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 decreased during the fourth quarter of the year 2006 by 32.4% compared to the third quarter of the same year, while it showed a decrease of 48.6% compared to the fourth quarter of the year 2005. The strike of the education sector reflected in the fourth quarter and leads to a decline in the productivity of the employees in the education activity.

The gross value added for Hotels decreased by 19.8% compared to the third quarter of the year 2006, and showed a decrease of 35.0% compared to the parallel quarter of the year 2005.

The gross value added for Public Administration and Defense decreased by 29.3% during the fourth quarter of the year 2006 compared to the third quarter of the same year, and 43.7% compared to the parallel quarter of the year 2005. This decline in the fourth quarter of the year 2006 was accompanying by partial delivery for the government activity specially in Remaining west bank.

As for the contribution for economic activity to Quarterly GDP, PCBS stated that the percentage contribution were affected in short term (compared with third quarter 2006 and parallel quarter of the year 2005), Construction activity decreased from (2.5%) in the fourth quarter of 2005 to (2.4%) in the third quarter of 2006, then it increased to (2.7%) in the fourth quarter of 2006.

On the other hand Hotels and restaurants activity decreased from (1.6%) in the fourth quarter of 2005 to (1.4%) in the third quarter of 2006, then this decreases continued to reach (1.3%) in the fourth quarter of 2006, Also, Education activity decreased from (7.9%) in the fourth quarter of 2005 to (6.8%) in the third quarter of 2006, then this decreases continued to reach (5.2%) in the fourth quarter of 2006, whereas Health and social work decreased from (5.1%) in the fourth quarter of 2005 to (3.7%) in the third quarter of 2006, then this decreases continued to reach (3.1%) in the fourth quarter of 2006, whereas Public administration and defense decreased from (20.1%) in the fourth quarter of 2005 to (17.9%) in the third quarter of 2006, then this decreases continued to reach (14.3%) in the fourth quarter of 2006.

Regarding agriculture and fishing activity increased from (6.7%) in the fourth quarter of 2005 to (7.9%) in the third quarter of 2006, then this increases continued to reach (10.2%) in the fourth quarter of 2006, On the other hand, Wholesale and retail trade activity increased from (8.2%) in the fourth quarter of 2005 to (10.0%) in the third quarter of 2006, then this increases continued to reach (10.3%) in the fourth quarter of 2006, whereas Transport, Storage and Communications increased from (10.0%) in the fourth quarter of 2005 to (11.3%) in the third quarter of 2006, then this increases continued to reach (12.6%) in the fourth quarter of 2006, whereas Financial Intermediation increased from (4.4%) in the fourth quarter of 2005 to (4.6%) in the third quarter of 2006, then this increases continued to reach (5.2%) in the fourth quarter of 2006, whereas Real estate, Renting and Business Services increased from (9.4%) in the fourth quarter of 2005 to (11.7%) in the third quarter of 2006, then this increases continued to reach (12.4%) in the fourth quarter of 2006, whereas Manufacturing activity increased from (9.8%) in the fourth quarter of 2005 to (11.7%) in the third quarter of 2006, then this increases continued to reach (12.2%) in the fourth quarter of 2006, whereas Electricity and Water supply activity increased from (1.4%) in the fourth quarter of 2005 to (1.8%) in the third quarter of 2006, then this increases continued to reach (1.9%) in the fourth quarter of 2006.

PCBS concluded by pointing to the community, social and personal services, revealing that they increased from (0.9%) in the fourth quarter of 2005 to (1.1%) in the third and fourth quarter of 2006, Mining activity increased from (0.4%) in the fourth quarter of 2005 to (0.5%) in the third and fourth quarter of 2006.

S.A.S. (12:55 P) (10:55 GMT)