The International Monetary Fund is urging Israel to lift restrictions on the West Bank and Gaza because the Palestinian economy is weakening, AFP reported Thursday.
- Saving the Palestinian economy
- World Bank warns of Palestinian economic crisis
- IMF economists raise alarm over austerity measures
Christoph Duenwald, the IMF mission chief for the West Bank and Gaza, pointed in a statement to rising unemployment, particularly among youth, which stands at 43 percent, as a worrying trend. He argued that sustained donor support combined with Israel easing restrictions comprehensively were needed to "underpin the Palestinian reform efforts," according to AFP.
Duenwald, who is based in Washington, D.C., said that the international community needed to "step up to help fill a 'sizeable' financing gap this year" for the Palestinian Authority. He also praised the PA for "'doing a commendable job' managing the economy in difficult circumstances."
The IMF forecasts the economy in the West Bank and Gaza growing 2.5 percent in 2014, a slight improvement over 2013's growth rate of 1.5 percent.