Palestine Economic Update – December 2023

Palestine Economic Update – December 2023

While the war on the Gaza Strip is still ongoing for the third month, the second special issue of the Palestine Economic Update covers developments in December by discussing the ramifications of the war on Gaza and its implications on the economic landscape in Palestine.

Update Highlights:

  • Humanitarian Crisis. The third month of the war witnessed intensified Israeli attacks, destruction, and humanitarian crisis.
  • International Aid and Response. Pledges cover 50% of the $1.2 billion Flash Appeal; critical funding gaps persist, notably in health and nutrition, shelter, and WASH.
  • Infrastructure Destruction. Most water systems need repair, 70% of households use contaminated water, and diseases are rising.
  • Food Security: Gaza’s food system is on the brink of collapse; 100% reported food insecurity, severe hunger levels, scarcity, rising prices, and essential items disappearing.
  • Economic Ramifications. Projections downgrade 2023 Palestinian economic growth rates from 3.2% to a contraction of 3.7%; $1.5 billion GDP loss; fiscal crisis threatens basic functions. Economic collapse is looming in the West Bank with 29% of establishments closed, sales sharply declining, and significant workforce reductions.
  • Clearance Revenues Crisis: PNA and GoI reached an agreement on clearance revenues, subsequently repudiated by the Israeli Minister of Finance – yet deductions continue, local tax revenues are declining, and the fiscal deficit is projected at $887M, leading to further accumulation of arrears.

To read the full issue, please click here :

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