ABSTRACT
The economic balance of the country's affairs can be well illustrated by a consideration of the figures of imports and exports. The gap between these was always relatively considerable and always increasing. One of the main tasks of the Palestine Government during the war years was the control of inflation. The economic and financial situation, though prosperous at the end of 1935, showed some deterioration in the later months of that year as a result of the Italo-Abyssinian War. The economic position in the citrus market, almost the sole support of Palestinian exports, became more threatening. Imports were three times the value of the exports. The Arab strike contributed to a worsening of the situation, and the increased public expenditure, a consequence of the Arab Rebellion, unbalanced the budget which had for many years, almost without exception, shown a surplus.
