Israeli curbs on labor, banking, and trade drive West Bank economic crisis - report

A New York Times report details how Israeli restrictions on labor, banking, and trade have pushed the West Bank into an economic crisis. Unemployment has more than doubled to 28%, the PA has slashed salaries for 140,000 workers, and healthcare is strained. Israel also confiscates import tax revenue and limits bank transfers, leaving billions in unused shekels. The report quotes Palestinian officials warning of a 'full crisis' and a 'narrow window to act'.

A New York Times report details how Israeli restrictions on labor, banking, and trade have pushed the West Bank into a severe economic crisis. Since the October 7, 2023 massacre, Israel imposed a permit ban preventing over 100,000 Palestinian laborers from entering the West Bank. Unemployment has more than doubled to 28%. The Palestinian Authority, facing a sharp drop in revenue, has slashed salaries for 140,000 civil servants and security personnel, shortened the school week to three days, and accumulated billions in debt. Healthcare is strained: pharmacies often lack medications, and hospitals operate with reduced staff. Israel has also begun confiscating hundreds of millions of dollars monthly in import tax revenue it collects for the PA, which accounts for about two-thirds of the PA's $6 billion budget. Additionally, Israel limits shekel transfers to Israeli banks, leaving approximately $5.7 billion unused in West Bank bank vaults. Banking executives fear their institutions could be cut off entirely. The report quotes Palestinian officials warning of a 'full crisis' and a 'narrow window to act'. An IDF spokesperson denied claims about restrictions on goods, accusing the PA of diverting attention from its support for terrorism.