The World Bank’s engagement in the Palestinian territories began in November 1992. Grants, financed from the World Bank’s own income and supplemented by Trust Funds contributed by donors, fund the Palestinian Authority’s (PA) projects in water and sanitation, municipal services, education, and social protection.
The lack of progress towards peace and reconciliation continues to create an unsustainable economic situation in the Palestinian territories. Economic momentum faltered during 2019. The slowdown was driven by a decline in private and public consumption and investment. The PA’s fiscal stress significantly heightened in 2019 over clearance revenues (taxes that the Government of Israel collects on behalf of the PA and later transfers to the PA).
Along with the rest of the global community, in March 2020 the West Bank and Gaza began dealing with the Coronavirus (COVID-19) health crisis. Since declaring a 30-day state of emergency on March 6, the PA has closed educational institutions, restricted movement, and banned large gatherings—in order to ensure social distancing practices. Cross-border movement has been almost entirely cut off.
Last Updated: Apr 15, 2020