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- Palestinian economy facing a ‘bleak’ future – World Bank
Palestinian economy facing a ‘bleak’ future – World Bank
'Despite signs of recovery in 2022, growth remains sensitive to the escalation of tensions in the Palestinian territories and restrictions on mobility'
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The World Bank on Tuesday warned that economic growth in the Palestinian territories – the West Bank and Gaza Strip – was expected to slump this year amid increased tensions in the region and conflicts around the world.
The economies of Gaza and the West Bank, which are largely dependent on foreign aid, grew four percent last year as Covid-related restrictions eased. But the volatile Israeli-Palestinian conflict and Russia’s war in Ukraine disrupting global supply chains will upend that growth in 2023, the international financial body said.
“Despite signs of recovery in 2022, growth remains sensitive to the escalation of tensions in the Palestinian territories and the ongoing restrictions on mobility, access, and trade,” said Stefan Emblad, World Bank country director for the West Bank and Gaza.
“Exogenous sources of risks, such as in the areas of food and energy prices, mean the overall economic outlook remains bleak,” Emblad added.
Noting an improvement in tax revenues in 2022, he called on the Palestinian Authority, in control of the West Bank, to continue reforms "to increase revenue, strengthen debt management, and improve fiscal sustainability.”
The unemployment rate in the West Bank was currently 13.1 percent and 45.3 percent in Gaza.