IMF urges revival of Palestinian economy

The International Monetary Fund (IMF) has called for “urgent action” to revitalize the deteriorating Palestinian economy suppressed by Israeli restrictions and political uncertainty.

The IMF said in a statement on Thursday that “urgent actions” are needed to “stabilize the Palestinian fiscal position and rekindle its economic growth over time.”

The US-based organization further said the financial situation has deteriorated in the besieged Gaza Strip and the occupied West Bank.

“Israeli restrictions on movement and access are virtually unchanged and continue to hamper growth prospects,” the IMF said.

The fund also highlighted an increasing unemployment rate, which hit nearly a quarter of Palestinian labor market in late 2012.

The IMF added that the Israeli acts of military aggression against the Palestinians, continued settlement expansion, and recent clashes in the West Bank had undermined the peace prospects.

According to the IMF, the Palestinian Authority faced a “liquidity crisis” with public spending on an “unsustainable” trajectory.

On March 12, the World Bank also warned of “lasting damage” to the Palestinian Authority’s economy caused by Israeli restrictions and the worsening fiscal situation.

The Israeli regime has imposed the all-out land, aerial, and naval blockade on the Gaza Strip since 2007, a situation that has amounted to a decline in the standard of living, unprecedented levels of unemployment, and unrelenting poverty.

Gazans are calling on the international community and human rights organizations to take action to lift the Israeli blockade and allow required amounts of fuel to enter the strip.