Palestinian economy falters despite pandemic recovery
Despite the end of the coronavirus pandemic, an improvement in the Palestinian economy does not seem very likely given other factors.
RAMALLAH, West Bank — The Palestinian economy is still suffering from the repercussions of the coronavirus pandemic and is unable to return to its pre-pandemic state. Despite indications of recovery, many challenges hinder progress, mainly exemplified by the ongoing Israeli restrictions on movement, transit and investment in the Palestinian territories. The continuation of the crisis at the levels of purchasing power and increasing commodity prices all slow the pace of the economic recovery.
The World Bank stated in its latest report published Sept. 18 that growth in the Palestinian territories is expected to reach 3.5% in 2022, which is a decline from 7.1% in 2021.
Moreover, the high inflation rate will greatly harm the poorest Palestinian families, as the cost of some basic food commodities is expected to rise to as much as 80% by the end of the year, according to the same report.
Since the beginning of the Russian war on Ukraine, the Palestinian territories have recorded huge increases in the prices of basic commodities accompanied by low income levels. Since the Paris Protocol placed Palestine and Israel under unified customs rates, the Palestinian side has been unable to recover given the small size of its economy.
