World Bank Warns Gaza's Economy In 'free Fall'
Mohammad Ali (@ChaudhryMAli88) Published September 25, 2018 | 03:34 PM
The World Bank warned Tuesday that the Gaza Strip's economy is in "free fall" as cuts to aid and salaries add to an already crippling Israeli blockade on the Hamas-run enclave.
Jerusalem, (APP - UrduPoint / Pakistan Point News - 25th Sep, 2018 ) :The World Bank warned Tuesday that the Gaza Strip's economy is in "free fall" as cuts to aid and salaries add to an already crippling Israeli blockade on the Hamas-run enclave.
The bank's report will be presented to the international donor group for Palestinians, known as the Ad Hoc Liaison Committee, at its meeting in New York on Thursday on the sidelines of the UN General Assembly.
The meeting will coincide with the speeches to the assembly of both Palestinian president Mahmud Abbas and Israeli Prime Minister Benjamin.
Already squeezed by the more than decade-long Israeli blockade, Gaza's economy has been further weakened by US aid cuts and financial measures by Abbas's Palestinian Authority.
Abbas has been seeking to pressure Islamist movement Hamas, which expelled his loyalists from the territory in 2007, as well as save costs.
According to the World Bank, he has reduced monthly payments to Gaza by some $30 million.
US President Donald Trump's administration has meanwhile cut more than $500 million in aid to the Palestinians, including ending all support for the UN agency for Palestinian refugees.
"The economic deterioration in both Gaza and West Bank can no longer be counteracted by foreign aid, which has been in steady decline, nor by the private sector, which remains confined by restrictions on movement, access to Primary materials and trade," the bank said.
Gaza's economy shrunk by six percent in the first quarter of 2018 "with indications of further deterioration since then," it said.
The bank said one in two Gazans now lives below the poverty line and that unemployment is running at 53 percent.
More than 70 percent of young people are jobless, it said.
"Increased frustration is feeding into the increased tensions which have already started spilling over into unrest and setting back the human development of the region's large youth population," said Marina Wes, World Bank director for the West Bank and Gaza.
On September 20, UN envoy for the middle East peace process Nickolay Mladenov told the UN Security Council that "Gaza can explode any minute." Israel and Palestinian militants in Gaza have fought three wars since 2008.
In recent months, mass protests along Gaza's border with Israel have triggered repeated deadly clashes with the army, prompting warnings of the risk of a new conflict.
At least 187 Palestinians have been killed by Israeli fire since the protests began on March 30. One Israeli soldier has been killed in that time.
Israel says its actions are necessary to defend the border and accuses Hamas of using the protests as cover to attempt infiltrations and attacks.
Palestinians and human rights groups say protesters have been shot while posing no real threat.
Mladenov and Egyptian officials have been seeking to broker a long-term truce between Israel and Hamas, but those efforts have stalled in recent weeks.
Related Topics
Recent Stories
Punjab CM inaugurates Pakistan’s first Virtual Women Police Station
Dutch model Donny Roelvink embraces Islam
Experts raise concerns over introduction of 10-stick packs
Iranian president arrives in Karachi
Law Minister expresses Govt's resolve to address issue of missing persons
Rizwan’s batting order may be changed: Sources
Nawaz Sharif to visit Guangzhou exhibition in China
FM Dar not traveling to China: Foreign Office
PM takes notice of deliberate delay in tax cases
Iranian President visits Allama Iqbal’s mausoleum
Iranian President arrives in Lahore today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 23 April 2024
More Stories From World
-
Migrant boat capsizes off Djibouti leaving 21 dead
1 hour ago -
Tesla profits tumble 55% as EV sales under pressure
1 hour ago -
Talks on global plastic treaty begin in Canada
2 hours ago -
Migrant deportations loom after parliament passes UK-Rwanda plan
2 hours ago -
Macron in last-ditch bid to halt EU vote battering
2 hours ago -
Ukraine moves to bring military-aged men home to fight
4 hours ago
-
Asia hit hardest by climate change, extreme weather: UN weather agency
4 hours ago -
Muscles and masterpieces: Louvre offers Olympic sport sessions
4 hours ago -
Migrant boat capsizes off Djibouti leaving 16 dead
4 hours ago -
UK Rwanda law sparks fear among migrants hoping to cross Channel
6 hours ago -
China issues highest-level rainstorm warning after deadly floods
6 hours ago -
UK's Sunak announces raised defence spending, new Ukraine aid
6 hours ago