Manufacturing sector expected to grow by 2.5% and absorb 79,000 jobs in six years – Ministry of Economy

The Ministry of National Economy said today that the manufacturing sector in Palestine is expected to grow by 2.5% in gross domestic product, rising from 11.2% to 13.7% in the next six years.

It said in a statement that the growth of the manufacturing sector will accommodate 79,000 new job opportunities, rising from 139,000 workers to 218,000 during the period 2023-2029, in addition to injecting investments worth $486 million to expand production capabilities for existing companies or investments taking the environment into consideration.

The cost of implementing the industrial policy adopted by the cabinet is estimated at about $180 million, half of which covers infrastructure costs and financing costs, which were taken into account within existing projects such as sustainability projects for financing small and medium-sized enterprises.

It will be determined in partnership between the public and private sectors, the general policies that the government committed to implement in order to develop the industrial sector, especially manufacturing activities, and transform the manufacturing sector into a major engine for economic growth.

The policy includes 12 programs and covers the areas of supply and demand, infrastructure, capital, labor and skills, technology and innovation, access to markets, competitiveness with industrial facilities, and the development of priority sub-sectors.

The Ministry set the stages of implementation of the industrial policy in the short, medium, and long term.

It is worth noting that the main feature of the manufacturing sector is micro and small enterprises, in which 92% of manufacturing facilities employ fewer than nine workers.

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