Monday, June 17, 2024

Palestinian minister says economy facing unprecedented shock amid Gaza war

Minister of National Economy Mohammed Alamour has warned that the Palestinian economy is facing an "unprecedented" shock, due to the ongoing Hamas-Israel conflict in the Gaza Strip.

In a press statement, Alamour said that “the war” carried out by the Israeli government and the financial and economic blockade are disrupting commercial activity and causing an economic contraction for Palestine, which is expected to reach 10 percent.

A World Bank report published on Thursday projected that the Palestinian economy would contract in a range of 6.5 to 9.4 percent this year.

Alamour revealed that the Palestinian economy loses about 20 million U.S. dollars every day due to the complete cessation of production in the Gaza Strip and disruptions in the West Bank, in addition to the unemployment of workers and the sharp decline in economic activity and purchasing power.

Alamour called on the international community to oblige the Israeli government to stop the “genocide” and end the financial and economic blockade which is being practiced as “political blackmail”.

The World Bank added in the report that the Palestinian Authority’s public finances have deteriorated sharply in the past three months, significantly increasing the risk of a public finance collapse.

At the end of 2023, the financing gap reached 682 million U.S. dollars, and this gap is expected to double in the coming months to reach 1.2 billion, according to the report.

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