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 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.
After an uptick in economic growth during the second half of 2018, economic momentum faltered in the Palestinian territories in early 2019. The unemployment rate remains high: in the West Bank, unemployment declined from 17 percent in 2018 to 15 percent in the second quarter of 2019, but in Gaza the unemployment rate increased from 43 percent in 2018 to almost 47 percent in the second quarter of 2019.
During March to September 2019, the Palestinian Authority (PA) implemented an emergency cash management plan to manage the loss of revenues from the impasse over revenue transfers. The West Bank and Gaza ranked 116th out of 190 economies in the World Bank’s 2019 Doing Business report.
Last Updated: Oct 01, 2019