Palestine

Palestine Economic Update June 2024

Palestine Economic Update June 2024

While the war on the Gaza Strip continues for the ninth month, the June issue of the Palestine Economic Update discusses the repercussions of the war on Gaza on the socio-economic scene in Palestine.

Update Highlights:

  • Israeli Finance Minister Bezalel Smotrich released PA frozen tax funds and extended awaiver allowing Israeli banks to maintain relations with Palestinian counterparts. However, this came after the Israeli security cabinet approved legalizing five West Bank settlements and imposing sanctions on the PA.
  • Israel’s mounting deductions and freeze on transferring tax funds have pushed the PA into a dire financial situation, severely impacting the provision of public services. After various deductions, the PA receives less than 43.1% of its clearance revenues entitlements.
  • The war on Gaza has significantly impacted the Palestinian economy, with GDP plummeting by 32.8% and unemployment rising to 50.8%. Surveys revealed profound negative impacts on businesses and workers in the West Bank.
  • Israel reduced water supply to major Palestinian cities in the West Bank, prioritizing Israeli settlements. Gaza faces a severe water crisis, with most infrastructure destroyed and critically low water availability.
  • The Palestinian Exchange (PEX) reported a 47% decrease in net profits for Q1 2024, totaling $52 million, compared to Q1 2023.To read the full issue, please click here :
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