World Bank: Despite growth, ‘precarious’ Palestinian economy needs more aid

RAMALLAH, West Bank — The World Bank on Monday urged donors to boost support for the Palestinian Authority, which it said was facing a destabilizing budget crisis linked partly to “record low” foreign aid contributions.

The report published ahead of a donor conference in Brussels paints a contrasting view of the Palestinian economy, which is seeing a post-lockdown recovery even as food insecurity worsens in places.

The economy in the West Bank posted 7.8 percent growth in 2021 — part of a rebound also fueled by an increased number of Israeli work permits for Palestinians to find jobs in the Jewish state.

In Gaza — a separate territory ruled by Islamist terror group Hamas, under Israeli-blockade to prevent the import of arms — the economy was slowed down by an 11-day war with Israel last year but still saw 3.4 percent growth.

The growth in the West Bank allowed the PA to increase tax revenue but the financial outlook remains…

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