Despite signs of recovery after the easing of COVID-related measures, the fiscal situation remains highly challenging due to the accumulation of large arrears and very low aid. In addition, the COVID-19 pandemic had a severe impact on the well-being of Palestinians.
The Palestinian economy was stagnant and the socio-economic situation already difficult prior to the breakout of COVID-19. This is attributed to restrictions on trade, movement and access, recurrent hostilities, internal divide, and falling aid inflows.
The World Bank and partners launched its first employment-focused “Development Impact Bond” in the world in the Palestinian Territories to help people with job training and job placement.