Gaza’s economy is in free fall, marking minus 6 percent growth in the first quarter of 2018 with indications of further deterioration since then.
While the decade long blockade is the core issue, a combination of factors has more recently impacted the situation in Gaza; including the decision of the Palestinian Authority (PA)’ to reduce the monthly payments by USD30 million to the area, the winding down of the US$ 50- 60 million per year of the US Government aid program, and the cuts to the United Nations Relief and Works Agency program.
The latest World Bank report to the Ad Hoc Liaison committee (AHLC) highlights the critical challenges facing the Palestinian economy and identifies the needs going forward.