The Palestinian Authority is on the threat of economic collapse, the World Bank mentioned.
“Revenue streams have largely dried up due to the drastic reduction in clearance revenue transfers payable to the Palestinian Authority and a massive drop in economic activity,” the establishment mentioned in a press release Thursday.
“The rapidly widening gap between the amount of revenues coming in, and the amount needed to finance essential public expenditure, is driving a fiscal crisis,” it added.
While this financing hole reached $682 million in 2023, it’s projected to double throughout the coming months to succeed in as much as $1.2 billion.
Almost half 1,000,000 jobs have been misplaced within the Palestinian financial system since October 2023, which incorporates an estimated lack of 200,000 jobs within the Gaza Strip, 144,000 jobs within the West Bank, and 148,000 cross-border commuters from the West Bank to the Israeli labor market, in line with the World Bank.
“The overall poverty rate of Palestinians stood at 32.8% in mid-2023,” mentioned the assertion. “In Gaza, the poverty rate stood at close to 64%. In the West Bank, it was around 12%,” it added.

The Palestinian financial system is anticipated to contract anyplace between 6.5% and 9.6% this 12 months, in line with the World Bank.
Source: www.anews.com.tr