Special Bulletin
Palestine Economic Update - December 2023
author: Palestine Economic Policy Research Institute - MAS
Key Messages
- Ongoing third month of war with intensified Israeli attacks, destruction, and humanitarian crisis.
- Pledges cover 50% of the $1.2 billion Flash Appeal; critical funding gaps persist, notably in health and nutrition, shelter, and WASH.
- Most water systems need repair, 70% of households use contaminated water, and diseases are rising.
- Gaza's food system is on the brink of collapse; 100% reported food insecurity, severe hunger levels, scarcity, rising prices, and essential items disappearing.
- Projections downgrade 2023 Palestinian economic growth rates from 3.2% to a contraction of 3.7%; $1.5 billion GDP loss; fiscal crisis threatens basic functions.
- Economic collapse looming in the West Bank with 29% of establishments closed, sales sharply declining, and significant workforce reductions.
- PNA and GoI reached an agreement on clearance revenues, subsequently repudiated by Israeli Minister of Finance - yet deductions continue, local tax revenues are declining, and the fiscal deficit is projected at $887M, leading to further accumulation of arrears.
