Palestine Economic Update - June 2024

author: Palestine Economic Policy Research Institute - MAS
  • Israeli Finance Minister Bezalel Smotrich released PA frozen tax funds and extended a waiver 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 Palestine Exchange (PEX) reported a 47% decrease in net profits for Q1 2024,totaling $52mn, compared to Q1 2023.
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