The World Bank says that the Palestinian economy is in a “worrying” state of stagnation.
In a report to be provided to the Ad Hoc Liaison committee (AHLC) on Monday the World Bank explains that the Palestinian economy is likely to grow by a maximum of only 3.5%.
per capita income growth has almost stagnated and projected growth levels will not support an improvement in living standards
The Bank also identified concern with high levels of unemployment in both the West Bank – where it is at 18% of workers – and in Gaza, where it is at staggering 42% of the labour market. According to Marina Wes – who is the Bank’s country direct for occupied Palestine – states in the report:
The Palestinian economic outlook is worrying with serious consequences on income, opportunity, and well-being. Not only will it affect the Palestinian Authority’s capacity to deliver services to its citizens, it may also lead to wider economic problems and instability
The World Bank report is clear that the lethargy evident in the Palestinian economy comes as a result of Israeli policy:
Israeli restrictions…have pushed private investment levels to amongst the lowest in the world (in the Palestinian territory), particularly the ones on Area C which could increase Palestinian GDP by 35 percent and lead to a similar increase in employment