A United Nations report on the state of the economy of the Palestinian Authority concluded that the ongoing warfare with Israel has been extremely costly for Arab residents of the Authority. United Nations Special Envoy to the Middle East, Terje Larsen, places the blame for the devastation of the PA economy with Israel.
Larsen reported that Israeli security measures, specifically the periodic closures on PA areas, caused economic production to fall by 51 percent during the last third of 2000, the first period of the current warfare. He further stated that the number of unemployed in PA areas has risen from 73,000 to 189,000, a loss of income of about 182 million dollars. Overall, according to the UN envoy, the Israeli measures will lead to a PA deficit, at the end of 2001, of about $37 million, which represents 22 percent of the total PA annual budget.
Larsen reported that Israeli security measures, specifically the periodic closures on PA areas, caused economic production to fall by 51 percent during the last third of 2000, the first period of the current warfare. He further stated that the number of unemployed in PA areas has risen from 73,000 to 189,000, a loss of income of about 182 million dollars. Overall, according to the UN envoy, the Israeli measures will lead to a PA deficit, at the end of 2001, of about $37 million, which represents 22 percent of the total PA annual budget.