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Cautious optimism as PA economy booms

August 20, 2009 10:04
Bakers in Nablus bake a giant kunafa, a local sweet, in a symbolic bid to tackle the city’s reputation for militancy

ByBen Lynfield, Ben Lynfield

3 min read

For now, the store owners are smiling in Nablus, a city usually known for its violent uprisings, armed gunmen prowling the streets and hard-hitting clampdowns by Israeli soldiers.

The economy is lifting off after Israel eased or removed the checkpoints ringing the city, a process also underway elsewhere in the West Bank. In a recent report, the International Monetary Fund forecast a seven per cent growth rate for the West Bank for 2009.

The average daily wage is up by 24 per cent. Trade with Israel has jumped by 82 per cent. Twice as many cars were sold in 2008 as in 2007. More than 2,000 companies have been registered with the PA in the past 18 months.

Storekeepers in Nablus’s casbah report 50-100 per cent increases in sales compared to just six months ago, much of that from Arab Israelis now allowed to drive into Nablus on Saturdays.