Crisis Group Says Israeli Policies Dismantle West Bank Economy as Unemployment Hits 30%
Updated
Updated · The Associated Press · Jun 15
Crisis Group Says Israeli Policies Dismantle West Bank Economy as Unemployment Hits 30%
3 articles · Updated · The Associated Press · Jun 15
Summary
30% unemployment and a 50% drop in private business activity show the West Bank economy is nearing collapse, according to a new International Crisis Group report.
Nearly 200,000 lost work permits after Oct. 7, 2023, cutting almost $400 million a month from Palestinian income, while checkpoints, land restrictions and disrupted supply chains further choke commerce.
No tax transfers have been made since May 2025, the report says, after Israel withheld billions of dollars in revenue owed to the Palestinian Authority and imposed unilateral deductions.
The Palestinian Authority — the West Bank’s biggest employer and service provider — has borrowed heavily as workers go unpaid and roads, water lines, hospitals and schools deteriorate.
The report warns the economic squeeze is not only deepening hardship for 3.4 million Palestinians but also raising the risk of instability and greater violence as Gaza dominates international attention.