Government Reforms Instill Confidence

“So if you look at fiscal operations, you look at security cooperation, yes, institutions are being built. The economy is in a sense reviving or I would say recovering. It is recovering based on two things, number one the security cooperation makes possible a degree of movement in the West Bank that allows for the reemergence of economic activity, and second ... the tremendous influx of international assistance. The economy is reviving, not because of brilliant economic management or because of institution building but simply recovery from some of the fiscal and economic problems caused by the intifada years.”
—Nathan Brown, nonresident senior associate, Middle East Program, Carnegie Endowment for International Peace, event, "Divided Palestine-A Barrier to Peace," Carnegie Endowment for International Peace, July 21, 2010

“In 2009 the macroeconomic situation continued to improve in the West Bank, but in Gaza conditions remain difficult due to the blockade. In the West Bank, three key factors contributed to continued strong growth performance. First, private sector confidence has been bolstered by the Palestinian Authority (PA)’s track record in institution-building and reforms in particular in the security, public finance, and governance areas. Second,
these reforms have been supported by generous donor budgetary aid, equivalent to about 22 percent of GDP in 2009. Third, some restrictions on movement and access have been relaxed, especially on movement of goods and people between major urban centers in the West Bank.”
—International Monetary Fund, “Macroeconomic and Fiscal Framework for the West Bank and Gaza: Fifth Review of Progress,” April 13, 2010