Is the Palestinian economy trending up?

After two years of sharp decline, the Palestinian industrial production index recorded a small gain in 2016.

According to the Feb. 5 report of the Palestinian Central Bureau of Statistics, the index for industrial production rose 0.96% in 2016, after witnessing a drop of 3.9% in 2014 and 3.8% in 2015. In December 2016, industrial production in Palestine increased by 4.9% compared with the same month in 2015. It was the highest growth registered since April 2016.

The statistics bureau said that the increases occurred in the areas of water supply products and recycling, which was up by 15.8%. Stone quarries were up 13.1%, while electric supplies and air-conditioning products were down 26.3% in 2016 compared with the previous year.

Samir Hazboun, an associate professor of applied economics at Al-Quds University, told Al-Monitor that while last year witnessed an end of the decline, the increase in industrial output is unlikely to be sustained. “Last year’s drop in oil prices means that energy costs were down. But the current prediction that oil will average $58 a barrel means that our energy bill will increase, therefore slashing any potential increase in revenue.” Hazboun said that already in 2017, the electrical bill is up 5%.