While the Palestinian economy continues to grow, indications of sustainable growth remain absent. In fact, West Bank growth actually slowed in 2011 compared to the previous year. In addition to the decline in donor support and the fiscal crisis, the slowdown can also be attributed to a largely unchanged Israeli system of restrictions preventing the free flow of commercial traffic and goods.
Gaza continued to recover in 2011, experiencing double-digit GDP growth. Examination of the factors driving growth in the territory, however, raises doubts regarding the sustainability of this trend. Much of the growth stems from a construction boom produced by increased aid inflows, the lifting of Israeli restrictions on the entry of some raw materials and increased imports through the tunnels from Egypt. In addition, the Gazan economy is still rebounding from a very low base, with the average Gazan remaining “worse off than s/he was in the late nineties.”
Press Release
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/WESTBANKGAZAEXTN/0,,contentMDK:23142810~menuPK:294370~pagePK:2865066~piPK:2865079~theSitePK:294365,00.html
Full Report - 31 pages
http://siteresources.worldbank.org/INTWESTBANKGAZA/Resources/WorldBankAHLCreportMarch2012.pdf
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