Economic Monitoring Report to the Ad Hoc Liaison Committee
The Palestinian economy is not growing enough to raise living standards and reduce high unemployment. The economy has witnessed a sharp deceleration in economic growth, from over 8 percent during 2007-11 to 3 percent during 2012-15. The sharp decli...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/04/26224159/economic-monitoring-report-ad-hoc-liaison-committee-main-report http://hdl.handle.net/10986/24390 |
| Summary: | The Palestinian economy is not growing
enough to raise living standards and reduce high
unemployment. The economy has witnessed a sharp deceleration
in economic growth, from over 8 percent during 2007-11 to 3
percent during 2012-15. The sharp decline in growth has
stifled the economy's ability to create jobs for a
growing youth population. Successful reform efforts and
strong economic growth helped bring the relative size of the
Palestinian overall fiscal deficit down from 24.6 percent of
GDP in 2008 to 13 percent in 2010. However, despite these
efforts at fiscal consolidation, the deficit to GDP ratio
has remained stuck in the 10 - 13 percent range since 2010
-- on the back of a large wage bill and weak revenue
performance. The economy has long suffered from the
restrictions1 and political instability that continue to
constrain private sector activity. In addition, the decline
in donor funding from 32 percent of GDP in 2008 to 6 percent
in 2015 has significantly contributed to the recent economic
weakening. The internal divide between the West Bank and
Gaza, which has created a dual regulatory framework, has
also negatively impacted economic activity and the tax base. |
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