The United Nations Conference on Trade and Development (UNCTAD) expected the Palestinian economy to shrink by up to 35 percent due to the measures of the Corona pandemic, which also coincides with the loss of financial clearance revenues with the Israeli enemy and the scarcity of foreign aid.
The report indicated that the general isolation measures in the face of the pandemic had serious financial consequences for the Palestinian Authority and the population in the West Bank and Gaza Strip. The report estimated the loss of the Palestinian economy as a result of the pandemic at between 7-35% of GDP, based on assumptions about the severity and duration of the pandemic, in parallel with the public finances. The report expects the per capita gross domestic product to decline by between 3 and 4.5 percent.
The report showed that, barely a month after the outbreak of the pandemic, the PNA’s revenues from trade, tourism and remittances fell to their lowest levels in 20 years, indicating that financial pressures are increasing due to the additional spending resulting from the pandemic on health, social care, and private sector support. According to the report, because of the occupation, the authority lacks policy space and economic policy tools to deal with the enormous challenge imposed by the pandemic, does not have access to external borrowing sources, has no national currency, no independent monetary policy capabilities, and no available financial space.
Source (Anadolu Agency, Edited)
