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6 months ago
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ARTICLE AD BOX
The World Bank expects the Palestinian Authority's budget deficit to double in the coming months to reach $1.2 billion, warning of an increasing risk of financial collapse in Palestine.
In its report, the World Bank indicated that the Palestinian Authority's revenue sources have largely dried up due to the sharp decline in transfers to it and also the massive decline in the level of economic activity.
Until the end of 2023, the financial gap between the volume of revenues and the amounts needed to finance government spending reached $682 million.
This gap is expected to double in the coming months to $1.2 billion, according to the World Bank.
He added that the only financing option available to the Palestinian Authority is to increase foreign aid, which leads to the accumulation of new debts for the government.
He also pointed out that the Palestinian economy is still exposed to strong shocks since the beginning of this year.
He added: "Nearly half a million jobs have been lost in the Palestinian economy since October 2023, with 200,000 jobs in the Gaza Strip, 144,000 jobs in the West Bank, and 148,000 jobs across the border to and from the West Bank in the Israeli labor market."
The report concluded that although the prospects for 2024 remain uncertain, the Palestinian economy is expected to contract by between 6.5 and 9.6%.
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