There are reports about initial positive trends in commercial activity in Palestinian towns, following the hudna (truce) and calmer security situation, but no significant change in economic indicators.
"Palestinians made the hudna, but Israel is reaping most of the benefits," Palestinian Federation of Industries chairman Mazen Sinokrot told "Globes". At the same time, there is a willingness to resume economic relations with Israel's private sector.
Palestinians report that in the mood in the Gaza Strip has improved. Hotel occupancy has risen and cafes have opened along the beach. The end of the division of the Gaza Strip has enabled many people to return to their jobs within the Strip, and thousands of Palestinians can now leave for jobs in Israel. Commerce within the Gaza Strip can be conducted more easily in the absence of Israeli roadblocks.
In Ramallah, stores and restaurants that closed during the intifada have reopened. Even the new Plaza Mall has opened for business following the cease-fire declaration, in the hope that the hudna will become permanent.
The Palestinians nevertheless stress that so long as there is no real improvement in the restrictions on movement in the West Bank, there is no chance for real economic improvement. Current trends are only a symbolic improvement, not a real recovery.
"Regrettably, there is still no sign of renewed confidence by foreign investors or any willingness to return here, or by local investors to make new investments, since the situation is still unstable," said Sinokrot.
He said trade with Israel would rise substantially if there were further relaxations for the Palestinian population. "If the roadblocks are removed, trade will be easier and there will be a feeling of greater stability, and we'll resume trade with the Israelis."
Published by Globes [online] - www.globes.co.il - on July 28, 2003