## West Bank and Gaza: Selected Issues

_IMF Staff Country Reports, September 13, 2023_

## Source details

**Canonical URL:** [West Bank and Gaza: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/09/12/west-bank-and-gaza-selected-issues-539154)

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## Bibliographic details
- Published: September 13, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400253843.002

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### Economic divergence and key outcomes
- In 2022, per capita income in Gaza was only a quarter of that in the West Bank.
- Gaza exhibits much higher unemployment and poverty rates relative to the West Bank.
- Years of isolation and continuous conflicts have left Gaza’s economic development far behind that of the West Bank.
- Gaza’s capital stock is stagnant and infrastructure is derelict, especially electricity, as a result of the Gaza blockade and repeated wars with Israel since 2008.
- Prospects for declining donor aid risk worsening Gaza’s humanitarian crisis.
- Under current conditions, Gaza is unlikely to meet the U.N. 2030 Sustainable Development Goals.

### Drivers of divergence
- Much lower employment and investment rates in Gaza compared with the West Bank.
- Considerably lower productivity growth in Gaza.
- Israeli-imposed restrictions on access and movement of labor and goods severely hinder trade outcomes and productive capacity in both West Bank and Gaza, with restrictions far more severe for Gaza.

### Analytical findings and sectoral focus
- Analytical work suggests sizeable economic gains from boosting Gaza’s electricity infrastructure.
- The deterioration of infrastructure, particularly in electricity, constrains productive capacity and investment returns.

### Policy implications and recommended measures
- A major easing of the blockade and financing constraints is necessary to improve Gaza’s economic prospects.
- Any easing of restrictions should be accompanied by credible assurances that the security situation can be maintained in parallel.
- Continued or declining donor aid would exacerbate the humanitarian crisis, implying a need to secure sustained donor financing alongside reforms and infrastructure investments.

*Source: West Bank and Gaza: Selected Issues — https://www.imf.org/en/publications/cr/issues/2023/09/12/west-bank-and-gaza-selected-issues-539154*

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## Content in this bundle

- **West Bank and Gaza: Selected Issues; September 11, 2023**
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_Source: https://www.imf.org/en/publications/cr/issues/2023/09/12/west-bank-and-gaza-selected-issues-539154_