West Bank and Gaza: Report to the Ad Hoc Liaison Committee

Author: International Monetary Fund. Monetary and Capital Markets Department

The Palestinian economy is facing formidable challenges. Overcoming these challenges will require transformational reform with efforts required from the Palestinian Authority (PA), Israel, and the donor community.

Volume/Issue: Volume 2022 Issue 298

Publication date: September 2022

ISBN: 9798400219139

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Topics covered in this book

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International - Economics , Exports and Imports , Money and Monetary Policy , Public Finance , correspondent banking relations , IMF report , research assistance , reform scenario , shekel cash , Arrears , Pension spending , Total expenditures , Middle East and Central Asia

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Summary

The Palestinian economy is facing formidable challenges. The fiscal situation, high political, security and social tensions, rising inflation, movement and access restrictions and an unfinished structural agenda all weigh on the medium-term outlook. Under unchanged policies, debt is unsustainable and per capita GDP is projected to decline. The situation is particularly dire in Gaza with persistently high unemployment and poverty.