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Palestinians in Gaza have suffered from the cumulative costs, human and economic, of recurrent hostilities over the last three decades, as well as prolonged restrictions on the movement of people and commercial goods at border crossings, limits to fishing off Gaza’s coast, and now the effects of the COVID-19 pandemic.

Gaza has also undergone deindustrialization and its economy has become highly dependent on external transfers. Moreover, Gaza’s economic decline has had a severe impact on living standards with an unemployment rate of 45 percent and poverty reaching 59 percent as a result of the 11-day conflict and worsening COVID-19 conditions.

West Bank & Gaza is the first country in MENA to utilize scenario modeling within their systematic, urban policy, and development practices. This activity demonstrates that despite highly constrained environments within fragile and conflict affected areas, innovative planning tools can be used to support urban planning and the delivery of public services to citizens.

WASHINGTON, June 10, 2020 – The World Bank approved today a US$10 million grant to finance the operation and maintenance of the North Gaza wastewater treatment plant for four years and build the conditions for sustainable wastewater treatment services. In line with previous partnerships in the sector, the new Wastewater Management Sustainability Project will be granted an additional US$3.7 million by donor partners*, members of the Partnership for Infrastructure Development Multi-Donor ...

Hence, external support will be critical to help grow the economy during this unprecedented period," said Kanthan Shankar, World Bank Country Director for West Bank and Gaza. The new World Bank economic monitoring report* highlights critical challenges facing the Palestinian economy. The economy may shrink by at least 7.6%, based on a gradual return to normality from the containment, and by up to 11% in the case of a slower recovery or further restrictions.

“Urgent resolution is needed to prevent a further deterioration of economic activity and living standards," said Anna Bjerde, World Bank Acting Country Director for West Bank and Gaza and Director of Strategy and Operations for the Middle East and North Africa Region. Clearance revenues are a major source of budgetary income and the ongoing standoff is felt by all segments of the population in what is already a weak economy.

The “Gaza Emergency Support for Social Services Project” responds to the immediate needs arising from the emergency in Gaza and builds on previous operations to provide mental health services, short-term cash for social services, and online employment opportunities. The project will be implemented by the NGO Development Center (NDC) which will select non-governmental organizations (NGOs) in Gaza with excellent track records to manage and scale up mental health and psychosocial services.