Donor Support Crucial to West Bank and Gazas Recovery

Posted By on May 20, 2015

West Bank harvesters: Economic reforms and donor support will help sow the seeds of West Bank and Gazas future growth (photo: Mohamed Torokman/Reuters)

MIDDLE EAST AND NORTH AFRICA

IMF Survey

May 19, 2015

The West Bank and Gaza will need policy discipline and donor support in the short run, but a new financing model will be essential over the medium term for sustained private-sector-led growth, the IMF says.

The Gazan economy is struggling to rebuild in the wake of the violent conflict last summer that resulted in losses of over $4 billion. The war also affected confidence in the West Bank, where Israeli restrictions on the movement of labor, access to resources, and trade continue to undermine growth prospects.

The IMF has issued its latest report on the economy of the West Bank and Gaza in advance of the May 27 meeting of the Ad Hoc Liaison Committee, a coordination mechanism chaired by Norway for development assistance to the Palestinian people.

IMF mission chief Christoph Duenwald spoke to the IMF Survey about the reports findings, outlining what the Palestinian Authority can do to turn the economy around and how the international community can assist.

IMF Survey: The Gaza-Israel conflict dealt a harsh blow to the Palestinians in the summer of 2014. What was the impact on the economy of West Bank and Gaza?

Duenwald: Gaza, where the war played out, saw real GDP decline by 15 percent last year. According to official estimates, the losses from the war are over $4 billion, about 35 percent of West Bank and Gazas GDP. Tens of thousands of homes and enterprises were destroyed or damaged, businesses shut down, and utilities and infrastructure were severely damaged.

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Donor Support Crucial to West Bank and Gazas Recovery

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