Economic Monitoring Report to the Ad Hoc Liaison Committee

Palestinians are getting poorer on average for the third year in a row. As evidenced in previous World Bank reports, the competitiveness of the Palestinian economy has been progressively eroding since the signing of the Oslo accords, in particular its industry and agriculture. Even though donor aid had increased government-funded services and fueled consumption-driven growth during 2007 to 2011, this growth model has proved unsustainable. Donor support has significantly declined in recent years and, in any case, aid cannot sustainably make up for inadequate private investment. Thus, growth has started to slow since 2012 and the Palestinian economy contracted in 2014 following the Gaza war. In early 2015, GDP was still lower than it was a year ago. Due to population growth, real GDP per capita has been shrinking since 2013. Unemployment remains high, particularly amongst Gaza’s youth where it exceeds 60 percent, and 25 percent of Palestinians currently live in poverty. Against the backdrop of weak economic growth, reduced donor aid, and temporary suspension of revenue payments by the Government of Israel (GoI), the Palestinian Authority’s reform efforts have not been able to prevent another year with a financing gap. The persistence of this situation could potentially lead to political and social unrest. In short, the status quo is not sustainable and downside risks of further conflict and social unrest are high.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2015-09-30
Subjects:	DEFICIT, MONETARY POLICY, PLEDGES, GOVERNMENT EXPENDITURES, EQUIPMENT, ECONOMIC GROWTH, ACCOUNTING, DEPOSITS, STOCK, PRIVATE LENDING, VALUATION, FISCAL DEFICITS, DOMESTIC BORROWING, GOVERNMENT INVESTMENTS, PUBLIC INVESTMENTS, FINANCIAL DISTRESS, PRIVATE CREDIT, EXCHANGE, GOVERNMENT REVENUES, BANKING SYSTEM, LOCAL GOVERNMENTS, LIQUIDITY, DEVELOPING COUNTRIES, TAX COLLECTION, REVENUES, MORTGAGE, CAPACITY BUILDING, TAX SYSTEMS, TAX, CASH TRANSFER, INCOME TAX, NON-PERFORMING LOANS, PENSION SYSTEM, PLEDGE, BENEFICIARIES, INFLATION, PENSION, DEFICIT FINANCING, POLITICAL RISKS, BUDGET, CENTRAL BANK, HEALTH SECTOR, INVESTMENT SPENDING, CURRENCY, LOCAL BANKS, GOVERNMENT POLICY, DISBURSEMENT, PARTIAL CREDIT, PORTFOLIOS, PUBLIC FUNDS, FINANCES, EXCHANGE RATES, RECURRENT EXPENDITURES, INDIRECT COSTS, DEBT, MARKETS, PRIVATE INVESTMENT, LOCAL GOVERNMENT, DEFICITS, INTERNATIONAL DEVELOPMENT, PUBLIC FINANCE, BUDGET DEFICIT, BUDGET DEFICITS, INCOME LEVELS, LOANS, TAX COLLECTIONS, REGULAR PAYMENTS, LEGAL FRAMEWORK, MONETARY AUTHORITY, FINANCE, BANK FINANCING, DOMESTIC BANK, PUBLIC INVESTMENT, TAXES, BANKING SECTOR, FISCAL DEFICIT, EXPENDITURE, INTERNATIONAL STANDARDS, EQUITY, INVESTORS, REGULATORY FRAMEWORKS, GOOD, TAX RATE, FUTURE, PENSIONS, FISCAL BURDEN, FIXED CAPITAL, BUDGETS, PUBLIC EXPENDITURES, GOVERNMENT REVENUE, EXPENDITURES, DISBURSEMENTS, PROPERTY, CURRENT ACCOUNT DEFICIT, LOCAL GOVERNMENT REVENUES, INSTITUTIONAL CAPACITY, MARKET, POLITICAL UNCERTAINTY, CREDIT GUARANTEE, TREASURY, SOLVENCY, REFORM AGENDA, INSURANCE, CURRENCIES, ECONOMIC DEVELOPMENT, TRADE SECTORS, GOODS, RECURRENT DEFICIT, SECURITY, INVESTMENT, DOMESTIC ARREARS, SHARE, PUBLIC FINANCES, POVERTY, LENDING PORTFOLIOS, PRIVATE INVESTORS, DECENTRALIZATION, REVENUE, PROFIT, INVESTMENTS, LENDING, CHECK, TRUST FUND, PENSION FUND, EXCHANGE RATE, PUBLIC SPENDING, CAPITAL INVESTMENT, COMMODITY PRICES, LIABILITIES, ARREARS, CREDIT HISTORY, GUARANTEE,
Online Access:	http://documents.worldbank.org/curated/en/2015/09/25081078/economic-monitoring-report-ad-hoc-liaison-committee-vol-2-main-report https://hdl.handle.net/10986/22721
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