RAMALLAH,  Apr. 6 (JMCC) - The Palestinian economy in the West Bank is set for a second year of heavy growth, according to the Palestinian Central Bureau of Statistics (PCBS).

An annual report released by the PCBS predicts that all things being equal, the Palestinian GDP will rise by 4.2 percent.

The prediction accounted for a continuation of the Israeli siege in Gaza in place since 2007, which limited the overall growth of the Palestinian economy last year.

If the blockade in Gaza is lifted the overall economic picture in the occupied Palestinian territories will certainly show even more dramatic growth in 2010, according to the report.

The PCBS predicts that if an optimistic scenario is achieved, with at least a partial end to the siege in Gaza and the implementation of investment and development projects in the Palestinian territories, the GDP could rise by an estimated 8.8 percent.

The Palestinian economy experienced significant growth in 2009 after Israel eased some of its arbitrary security measures in the West Bank, freeing up economic development and ease of movement. Findings indicate a 6.8 percent increase in GDP in 2009.

If the political atmosphere remains relatively stable the Palestinian economy should continue to see growth. However, if things deteriorate at a political level, the economy could certainly shrink back in to a state of severe decline.

Check out the PCBS 2010 Economic Forecast report