Knowledge Note

"The fiscal position has worsened not only due to the outbreak but also due to a political standoff that is disrupting the flow of revenues."

Following three consecutive years of economic growth below 2%, 2020 is proving to be an exceptionally difficult year as the Palestinian economy faces triple reinforcing crises: i) resurgent COVID-19 outbreak, ii) a severe economic slowdown, and iii) another political standoff between the Palestinian Authority (PA) and Government of Israel (GoI), disrupting clearance revenues.