Economic Monitoring Report to the Ad Hoc Liaison Committee
Palestinian living standards continue to decline, with aid flows no longer providing the impetus for growth, amidst increasing uncertainty. The on-going restrictions in the West Bank along with the decade long blockade in Gaza have continued to hol...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/324951520906690830/Economic-Monitoring-Report-to-the-Ad-Hoc-Liaison-Committee http://hdl.handle.net/10986/29511 |
| Summary: | Palestinian living standards continue to
decline, with aid flows no longer providing the impetus for
growth, amidst increasing uncertainty. The on-going
restrictions in the West Bank along with the decade long
blockade in Gaza have continued to hollow out the productive
sector and prevented the economy from achieving its
potential. After two years of stronger growth driven by post
war reconstruction, the most recent data revealed growth of
2.4 percent in 2017 led by the West Bank - while in Gaza it
was a mere 0.5 percent. Unemployment rates continued to be
high - reaching 44 percent in Gaza - even with low labor
force participation. A range of additional challenges
emerged in 2017 and the economic outlook is highly
uncertain. We forecast growth of only 2.5 percent in 2018 –
declining in per capita terms. There are significant
downside risks to this forecast with doubts surrounding
donor flows and the potential for increased tensions to
spill over into unrest. |
|---|