The growth in GDP in the last quarter of 2014, following the devastating results of the Israeli war on the Gaza Strip in Q3/2014, was reversed in the first quarter of 2015. Real GDP declined by 0.8% in Q1/2015 in comparison with both Q4/2014 and Q1/2014. In the West Bank, real GDP increased by 1.8% from the previous quarter, while it went down by 3.0% from the corresponding quarter of 2014. In the Gaza Strip, in Q1/2015 real GDP declined by as much as 8.2% compared to Q4/2014 but grew by 6.3% compared to Q1/2014. In the West Bank GDP at constant prices amounted to $1,428.1 million, and the corresponding figure for the Gaza Strip was $434.9 million.
In Palestine the services sector had the highest share of GDP: 20.0%, followed by wholesale and retail trade (18.5%) and mining, manufacturing, electricity, and water (13.1%). In the West Bank, wholesale and retail trade contributed the most (19.9%), followed by services (19.0%) and mining, manufacturing, electricity, and water (14.5%). In the Gaza Strip, as much as 23.6% of GDP came from the services sector, 14.3% from wholesale and retail trade, and only 8.7% from mining, manufacturing, electricity, and water.
The decline in real GDP per capita was even more significant because of the natural population growth. In Palestine GDP per capita dropped by 1.6% compared to the previous quarter and by 3.6% compared to Q1/2014 to $425.9. In the West Bank, the decline was as much as 3.6% from Q4/2014 and 0.9% from the first quarter of the previous year. In the Gaza Strip, GDP per capita went up by 5.5% from Q4/2014 but decreased by 11.2% in comparison with the corresponding quarter of 2014.
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