The World Bank has assisted the Palestinians since the Oslo Accords of the early 1990s – continuing to lay the foundation of a future Palestinian state so that it can deliver services to the people. Grants, financed from the World Bank’s own income and supplemented by Trust Funds contributed by donors, fund the Palestinian Authority’s projects in water and sanitation, municipal, education and social protection sectors.
The lack of progress towards peace and reconciliation creates an unsustainable economic situation. The Palestinian internal polity is sharply divided between Gaza and the West Bank. Due to a steep deterioration in Gaza and a slowdown in the West Bank, the Palestinian economy witnessed no real growth in 2018. The unemployment rate was 31 percent in 2018—with 52 percent of Gaza’s labor force unemployed, including two out of every three youth. The Palestinian Authority’s financing gap persisted in 2018 mainly due to insufficient budget support and was financed through additional arrears. The West Bank and Gaza ranked 116th out of 190 economies in the 2019 Doing Business report.
Last Updated: Apr 01, 2019