World Bank Predicts Shirk Of Palestinian Economy

WB Predicts Shirk Of Palestinian Economy

The novel coronavirus crisis closed down activities and businesses all over the globe. It caused a significant decline in the global economy as nations struggle to survive the pandemic. Palestine is no exception.

The World Bank predicted that the country’s economy would shrink because of the coronavirus crisis.

The coronavirus is a global economic struggle

Every nation on the planet had their share of misfortune from the deadly pandemic. Many European countries, like Spain and Italy, buried thousands of death because of the epidemic. Aside from the loss of lives, these nations also suffered economic constraints as businesses shut down.

Many European nations needed funds to support their coronavirus control and prevention programs. The European Union recently proposed a new bill that allows the bloc to collect funds from member nations. Coronavirus-hit member nations might request the managed funds in the form of a loan.

The new bill is still subject to the approval of all members of the EU parliament. The funds are expected to boost the recovery of some nations when injected into highly damaged sectors.

Economies of Asia Pacific nations are also at risk of shrinking if no new measures are adopted. Almost every sector in the region suffered losses because of the pandemic. The Asian Development Bank recently advised that nations in the area should focus on private-public partnerships to boost its falling infrastructure sector.

US Congressional Budget Office revealed on Monday that the coronavirus’s impact would hunt the economy for a decade. CBO projected that the damage might reach $8 trillion. Philip Swagel, CB director, told lawmakers that the virus would shrink US economic output by 3 percent through 2030.

Palestine’s economy shrinks up to 11 percent

The World Bank said in a report on Monday that Palestine’s economy will decline by 11 percent in the coming year because of the coronavirus crisis. The bank warned the Palestinian authority that they might face a financial gap of around $1.5 billion next year because of the decline in its revenue and as they increase the funding for health.

The World Bank predicted the growth of the Palestinian economy at 2.5 percent before the pandemic.

The report projected that the economy would decline by 7.6 percent during this year because of the slow response of virus containment. The bank also predicted an 11 percent decline because of the gradual recovery due to government restrictions to fight the virus.

World Bank acknowledged the actions of the government in halting the spread of the deadly virus. The Palestinian government placed the whole country under a state of emergency in March. They also put major cities in lockdown to prevent the spread of the virus.

The World Bank also warned that the country’s unemployment rate would rise because of the losing tourism industry.

The bank noted that the West Bank’s unemployment rate would increase to 13.7 percent while Hamas Islamist-run’s unemployment rate will reach 42.7 percent. West Bank had 388 reported cases of the novel coronavirus, including two deaths.

Relevant news