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Prospects dim for post-war Palestinian economic recovery

A worker arranges products on a shelf as nearby labels reading in Arabic "national product" are displayed on packaged items at a supermarket in Ramallah in the occupied West Bank on December 26, 2023, as part of a wider campaign urging Palestinians to boycott Israeli products and buy locally made goods. Since the war in Gaza began, a slew of boycott posters, stickers and leaflets has cropped up across the occupied West Bank. Many Palestinians are looking for alternatives as calls to ban Israeli goods also g
To:

Al-Monitor Readers

From:

David Rosenberg

Israeli reporter specializing in business, economics and politics

Date:

Jan. 2, 2024

Bottom Line:

The war in Gaza has taken a severe toll on the Palestinian economy, principally in the Gaza war zone but also in the West Bank where Israeli measures have brought economic activity to a standstill. The medium-term outlook for the Palestinian economy hinges on a reconstruction plan for Gaza and an Israeli decision to restore pre-war economic ties with the Palestinians. Neither development appears promising. Donor countries are unlikely to cover reconstruction costs without an acceptable governance arrangement in Gaza and a political horizon that reduces the risk of another war. For the foreseeable future, aid money will cover basic humanitarian needs, leaving the enclave in economic distress. The West Bank’s crucial economic ties in Israel will remain constrained as long as a right-wing government remains in power in Israel.