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Palestinian Economy in Gaza Is Collapsing, World Bank Says

  • Output shrank 6% in first quarter, according to new report
  • Report cites blockade, sanctions as causes of detebrioration
Gaza City
Gaza City

Photographer: Jack Guez/AFP via Getty Images

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The Palestinian economy in the Gaza Strip is collapsing under a decade-long blockade, as well as decisions by the Palestinian Authority and U.S. government to reduce payments to the area, the World Bank said Tuesday.

The economy contracted by 6 percent in the first quarter of 2018, and there are indications of further deterioration since then, the report said. Youth unemployment is at 70 percent, and every second person is living in poverty. The report will be presented to the biannual meeting of the Ad Hoc Liaison committee, an international donor group for Gaza, in New York on Thursday.