The fiscal situation of the Palestinian Authority, which runs the West Bank, has worsened in the last three months, "significantly raising the risk of a fiscal collapse," the World Bank said on Thursday.
"The rapidly widening gap between the amount of revenues coming in, and the amount needed to finance essential public expenditure, is driving a fiscal crisis," it said.
“As of the end of 2023, this financing gap reached $682 million. This gap is projected to double within the coming months, reaching up to $1.2 billion,” it said in a report.
“Increased foreign assistance and the accumulation of further arrears to public employees and suppliers are the only available financing options for the Palestinian Authority,” it added.
According to the World Bank, the Palestinian economy continues to be under a massive shock in the first months of 2024.
“While the outlook for 2024 remains highly uncertain, a further economic contraction of anywhere between 6.5 and 9.6% is projected,” said the report.
