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شبكة راية الإعلامية
Palestinian economy faces worsening stagflation
The Palestinian economy in the West Bank is facing a severe economic and financial crisis, characterized by stagflation, a decline in liquidity and revenues from clearance funds, rising prices, and a reduced purchasing power for citizens. For the past three years, the economy has experienced significant deterioration due to the decline in liquidity, especially from Palestinian workers in the occupied territories, where the liquidity flowing in—around 21 billion shekels annually—has decreased by between 60 and 70%. Additionally, the revenues from clearance funds have been severely disrupted, leading to instability in salary payments and the accumulation of debts owed by the private sector. Movement restrictions and the blockade have worsened the crisis. These conditions have resulted in stagnation coupled with inflation, as rising prices put pressure on demand while citizens' incomes decline. The economic cycle heavily depends on liquidity from within Palestine and government salaries, with disparities in the situation between different cities.
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