Credit to firms engaged in agriculture and commerce diminished, while the proportion of total borrowing by construction firms rose from 18 to 26 percent. Although much of the credit issued to finance private sector investment comes from the banking system, NGOs constitute an increasingly significant source of financing. Fiscal Accounts . Public Investment . Despite the lack of public savings, public investment continues apace, with the help of external assistance through grants and lending.
International donors remain committed to supporting development in the West Bank and Gaza Strip.
It appears that expansionary trends in employment and wage earnings have not generated inflationary pressure. PCBS collects inflation statistics on a monthly basis by tracking the price of a basket of consumption goods over time. As of August 1998, annual inflation was 3.5 percent. During the last three months, inflation outside of East Jerusalem slowed continuously, most markedly in the Gaza Strip where inflation fell by half from 6 percent in May to 3 percent in August. Meanwhile, the remaining West Bank continues to experience relatively more stable price levels.