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Economic Monitoring Report to the Ad Hoc Liaison Committee (Inglês)

Despite confronting significant challenges, in 2021 the Palestinian economy started to recover from the severe impact of the Coronavirus (COVID-19) pandemic. In 2021, the management of fiscal policies remained the single most important economic challenge confronted by the Palestinian Authority (PA). The PA’s fiscal situation needs to be placed on a more sustainable path, as this will eventually result in a better and more efficient allocation of resources, positively affecting social conditions which have worsened due to the pandemic. In this Ad Hoc Liaison Committee (AHLC) report, a deep analysis of the impact of the COVID-19 pandemic on poverty in the West Bank and Gaza is conducted. The report shows that the pandemic had a severe impact on Palestinian livelihoods and the Palestinian economy. Understanding where the most prevalent vulnerabilities lie, and how different groups are impacted by the pandemic, helps to identify how to build more resilient lives and livelihoods for Palestinians. The main body of the report is organized in two chapters and one supporting annex. Chapter I focuses on recent economic developments in the real, fiscal, and banking sectors while providing a near-term outlook that highlights critical challenges facing the Palestinian economy, in particular, the required fiscal reform. Chapter II outlines some of the key areas in which Palestinian lives have been impacted by the pandemic and its associated restrictions. It begins by describing the impact on money-metric poverty before taking a broader lens to focus on job losses, food insecurity, and access to education. It presents recommendations on how to use the crisis to address systemic vulnerabilities and help to build more resilient lives and livelihoods for Palestinians living in the West Bank and Gaza.

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