Moreover, the re-grading exercise outlined in the Civil Service Law will also increase the wage bill. Private investment trends improved during 1998. The composition of lending to private companies in WBGS shifted somewhat during that period, with construction and manufacturing firms accounting for larger shares of total credit. The Palestinian Monetary Authority reports that deposits by private residents increased steadily throughout 1998, as did the level of credit extended to private resident customers. It is unclear to what extend the growth in deposits reflects higher private savings or greater financial intermediation as the banking sector continues to develop.
Public investment continues to be financed by the international donor community.