The World Bank: The Palestinian Economy Shrank by 11.5% in 2020

  • Jerusalem, Palestine
  • 23 February 2021

The World Bank revealed that the Palestinian economy shrank by 11.5 percent over the past year, far from previous estimates of a 7 percent contraction, under the impact of the Corona pandemic and the disruption of clearance funds.

According to the World Bank, the repercussions of the Corona pandemic continue to harm the already troubled Palestinian economy, calling for coordination at all levels to combat the outbreak of the Coronavirus, and to ensure the continuity of providing vital health services, in light of the current public financial crisis, and the shortage of medical equipment in the health sector.

The report showed that before the situation worsened as a result of the pandemic, the prospects for the Palestinian economy were bleak in light of low levels of growth, persistent fiscal deficits, high unemployment rates, and increasing poverty rates.

The Palestinian economy began in 2020 with expectations of a GDP growth of 2.4 percent compared to nearly 1 percent in 2019, which is the lowest actual growth since 2014. The situation worsened as a result of the multiplier effects of the pandemic and the suspension of clearance funds, which led to the most severe recession of its kind in economic activity.

Source (Al-Araby Al-Jadeed Newspaper, Edited)

Get an annual subscription in the quarterly Arab Economic bulletin