(Associated Press) The Palestinian economy’s recent growth is unsustainable because of its heavy reliance on foreign aid, a World Bank report said Wednesday.
For the past two decades, donor countries have propped the Palestinian economy by giving billions of dollars. The report said such aid has led to 7.7% gross domestic product growth between 2007 and 2011.
The growth has been primarily in government services, real estate and other non-tradable sectors. In contrast, the report said manufacturing and agriculture have dropped significantly.