Economic growth may slow down in Palestine, report says

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A report issued by the Palestine Monetary Authority on Sunday forecasts slower economic growth in Palestine this year, compared with 2016.

According to the report, the country's growth rate this year could possibly slow down to nearly 3.4 percent, compared with 4.1 percent in 2016.

This performance is based on the prediction that the current political and economic situation in Palestine will remain unchanged, in terms of Israeli-imposed restrictions on crossings and access of people and goods, the continued growth of Palestinian labor force inside Israel and the process of reconstruction of Gaza Strip.

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Despite the increased economic growth rate in Gaza last year, the unemployment rate in Palestine reached a new high at 26.9 percent of the overall labor force, compared with 25.9 percent in 2015. Thus, the high unemployment rate is still considered one of the main hurdles to economic growth in Palestine, according to the report.

The report also mentioned that the current Palestinian balance of payment showed a 1.35 million-US-dollar deficit in 2016, with a better performance by 34.8 percent compared with 2015, making 10.1 percent of GDP.

Concerning the finance sector, the report showed an increase of assets in the financial body by 12.7 percent in 2016, compared with 6.6 percent in the end of 2015.

Client deposits in Palestinian banks in 2016 also registered an increase by 9.8 percent.

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Source(s): AP ,Xinhua News Agency