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...

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Bibliographic Details
Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	Washington, DC 2015
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 http://hdl.handle.net/10986/22721

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Summary:	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.

Economic Monitoring Report to the Ad Hoc Liaison Committee

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