Economic Monitoring Report to the Ad Hoc Liaison Committee- September 2015

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  • September 2015


Palestinians are getting poorer on average for the third year in a row. Reduced donor aid, war, suspension of revenue payments and ongoing restrictions by the Government of Israel have had a severe impact on the Palestinian economy.

The World Bank economic report to the Ad Hoc Liaison committee (AHLC), a forum of donors to the Palestinian Authority, examines current economic trends and recommends measures and reforms to stop further deterioration.

The main body of the report is organized in two chapters and an annex. Chapter II focuses on the assessment of recent macroeconomic and fiscal developments in the Palestinian territories and the Palestinian Authority's (PA) related policies and actions. It also provides a near term macroeconomic and fiscal outlook. Chapter III draws on the just-completed public expenditure review providing insights into key issues related to public expenditure management as well as specific policy recommendations for reducing the PA's fiscal deficits and increasing the efficiency and efficacy of public spending. Finally, an annex summarizes the status of donor pledges from the Cairo conference on Gaza reconstruction.