World Bank Highlights High Risk of Financial Collapse in Palestine

24 May

The World Bank (WB) has sounded the alarm over the financial situation in Palestine, warning of an imminent risk of collapse. In a report released on Thursday, the institution outlined the deteriorating economic conditions over the past three months.


The report states, "The financial situation of the Palestinian Authority has sharply deteriorated, significantly increasing the risk of financial collapse." It attributes this decline to a substantial reduction in customs duties paid to the Palestinian Authority and a steep decline in economic activity. The resulting widening gap between revenue and necessary expenditures is pushing the government towards a budget crisis.


As of the end of 2023, the financing deficit stood at $682 million. Projections indicate that this deficit may double in the coming months, reaching $1.2 billion. Since October 2023, Palestine has witnessed the loss of approximately half a million jobs, leading to a significant rise in poverty levels. Currently, nearly the entire population of the Gaza Strip lives below the poverty line, with per capita income declining.


The report highlights ongoing severe shocks to the Palestinian economy in the first months of 2024. Despite considerable uncertainty, the World Bank forecasts a further economic contraction of 6.5-9.6% for 2024.



GSV "Russia - Islamic World"

Photo: pxfuel/CC0

Based on materials from TASS