World Bank: Palestinian economy could shrink by 11pc

JERUSALEM (AP) – The Palestinian economy could shrink by as much as 11 per cent in the coming year as the coronavirus pandemic inflicts yet another blow to the Palestinian Authority’s already shaky finances, the World Bank said yesterday.

The economic deterioration comes as tensions with Israel soar ahead of Israel’s plans to annex large parts of the occupied West Bank, which would make it virtually impossible to create a viable Palestinian state.

In a separate report, the UN’s Mideast envoy warned that unilateral actions by either side – such as Israeli annexation and Palestinian withdrawal from past agreements – would “most likely trigger conflict and instability” in the region.

Palestinians walk past a boutique in the West Bank city of Ramallah. PHOTO: AP