Confirmed by IMF: Israel tight restrictions choke Palestinian economy

IMF expects growth in Palestinian economy to slow this year to about 4.25 percent, with little progress expected in cutting unemployment.

Middle East Online | July 3, 2013

_59875_A2[1]

Victims of Israel’s restrictions

WASHINGTON – The International Monetary Fund said Wednesday that Israel’s tight restrictions hinder the growth of the Palestinian private sector, holding back the Palestinian economy.

In a report following a mission to the West Bank and Gaza, the IMF said it expected growth in the Palestinian economy to slow this year to about 4.25 percent, with little progress expected in cutting unemployment from the current 24 percent.

The report said the Palestinians need to build the private sector in an economy dominated by spending by the authorities, mainly the Palestinian Authority, heavily dependent on foreign aid to surmount a chronic deficit.

“Persistent Israeli controls and obstacles on internal movement, exports, and imports in the West Bank, as well as the virtual closure of Gaza, thwart the private sector,” the Fund said.

“The PA needs the continued support of the international community and cooperation of Israel, guided by the common objective of a more vibrant and robust Palestinian economy,” it said.

“Indeed, there is no substitute for a far-reaching relaxation of Israeli restrictions needed to unshackle the private sector and thereby boost growth and employment.”

It also said that spending by the Palestinian Authority was too heavily weighted in wages and pensions, and not enough in “much-needed investment in education and public infrastructure,” an impediment to private-sector growth.

It forecast a 2013 deficit for the Palestinian Authority of $1.7 billion, which is not fully covered by existing donor commitments.

“This gap would likely be covered by further arrears accumulation and domestic bank borrowing, which has already reached prudential limits,” the IMF warned.


All Israeli Attacks Timeline | All Israeli cease Fire Violations – Timeline



Still live in fairy-tale-land about Israel? Time to wake up: The Map of the “Greater Israel” even is hammered on the currency:

All facts at Storify continuously updated. Read what Israeli ‘leaders’ have said and done even before (peace) talks and how their actions contradict the reality and ugly facts which they try to hide from you:

You can forget all details. Save yourself time. It is only about Ethnic Cleansing of Palestine

Israel. Not looking for Peace. Nor Talks. But this…

The facts. Mainly Israeli sources. Continuously updated


Comments are closed.

%d bloggers like this: