Palestinians shop at a market in Bethlehem in the occupied West Bank. AFP
Palestinians shop at a market in Bethlehem in the occupied West Bank. AFP
Palestinians shop at a market in Bethlehem in the occupied West Bank. AFP
Palestinians shop at a market in Bethlehem in the occupied West Bank. AFP

Rise in global energy and food prices exacerbated Palestinian economic crisis, Unctad says


Deena Kamel
  • English
  • Arabic

The increase in global energy and food prices has exacerbated the challenges facing the Palestinian economy, which was already weakened by the Covid-19 pandemic and decades-long Israeli occupation, according to the UN Conference on Trade and Development (Unctad).

Palestine faces the risk of higher inflation and greater food insecurity this year because most of its wheat supplies are imported from Russia and Ukraine, either directly or through Israel, Unctad said in a report on Wednesday.

"Unctad urges the international community to extend sufficient and predictable financial support to the Palestinian people to alleviate suffering and prevent a deep socioeconomic crisis from worsening," it said.

The economy of the occupied Palestinian territory grew by 7.1 per cent in 2021, after a 11.3 per cent contraction in 2020 owing to the Covid-19 pan­demic, as a vaccination cam­paign was carried out and move­ment restrictions were eased.

However, Palestine’s last year’s gross domestic product growth re­mained below pre-pandemic levels of 5.1 per cent economic expansion in 2019.

The limited recovery in 2021 was unevenly concentrated in the occupied West Bank, while Gaza lagged, and the divergence between the two Palestinian regions widened.

In 2021, unemployment remained high, at 26 per cent, in the West Bank, while in Gaza, more than half the workforce was unemployed, and 83 per cent of workers received less than the minimum wage, Unctad figures show.

Poverty deepened, with the latest data indicating that 36 per cent of the Palestinian population lives below the poverty line.

Meanwhile, food insecurity increased to 23 per cent from 9 per cent in the West Bank, and from to 53 per cent from 50 per cent in Gaza.

Inflation in the occupied Palestinian territory, which has been below 2 per cent in recent years and turned negative in 2020 owing to the pandemic, rose to 1.2 per cent in 2021 with the recovery under way.

As the "low base effects" that underpinned growth in 2021 fade and the status quo persists, GDP growth is expected to be in the range of 3 per cent in the medium term, Unctad projections show.

This is "barely enough to keep up with a growing population and implying weak labour markets and per capita GDP stagnation", it said.

"However, the deterioration in global economic prospects in the first half of 2022 has put the prospects firmly on the downside."

The ability of the Palestinian government to effectively respond to the pandemic has been constrained by systematic barriers imposed by occupation, which deprives it of the policy tools and fiscal and monetary action available to other governments, Unctad said.

"If the status quo persists — with occupation entrenched and donor aid dwindling — in the short to medium term, GDP growth will barely keep up with population growth, implying, at best, per capita GDP stagnation and persistent high unemployment and poverty," Unctad said.

In 2021, total donor aid dropped to $317 million, or 1.8 per cent of GDP, a steep decline from the $2 billion in aid, or 27 per cent of GDP, in 2008, Unctad figures show.

Meanwhile, budget support halved last year compared with 2020, amounting to $186m, or 1 per cent of GDP, compared with 24 per cent in 2008. Development support declined from a peak 10.6 per cent in 2000 to 0.73 per cent in 2021.

"The crisis can be overcome by lifting the restrictions imposed by occupation that facilitate the leakage of Palestinian fiscal resources to the treasury of the occupying power and shrink the tax base by stifling economic activity," Unctad said.

Palestinian women are disproportionally affected by restrictions on movement imposed by the occupation, undermining women's rights to equal labour market participation by hampering their access to work, education and health care, the report said.

Palestinian women face additional safety concerns during commuting and at checkpoints, which restrict many of them to working from home or near by, or to being unemployed.

Even though Palestinian women have better education and more years of schooling than men, by the end of 2021, 54 per cent were unemployed compared with 30 per cent of men, Unctad said.

On average, women earned 20 cents of gross national income for every dollar earned by men.

UAE currency: the story behind the money in your pockets
Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
Pakistan World Cup squad

Sarfraz Ahmed (c), Fakhar Zaman, Imam-ul-Haq, Abid Ali, Babar Azam, Haris Sohail, Shoaib Malik, Mohammad Hafeez(subject to fitness), Imad Wasim, Shadab Khan, Hasan Ali, Faheem Ashraf, Junaid Khan, Shaheen Shah Afridi, Mohammad Hasnain      

Two additions for England ODIs: Mohammad Amir and Asif Ali

Sinopharm vaccine explained

The Sinopharm vaccine was created using techniques that have been around for decades. 

“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.

"What is left is a skeleton of the virus so it looks like a virus, but it is not live."

This is then injected into the body.

"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.

"You have to be exposed more than one time to what we call the antigen."

The vaccine should offer protection for at least months, but no one knows how long beyond that.

Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.

“Since it is inactivated, it will not last forever," she said.

ESSENTIALS

The flights

Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes. 

The trip

From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.

UAE currency: the story behind the money in your pockets
The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
If%20you%20go
%3Cp%3E%0DThere%20are%20regular%20flights%20from%20Dubai%20to%20Addis%20Ababa%20with%20Ethiopian%20Airlines%20with%20return%20fares%20from%20Dh1%2C700.%20Nashulai%20Journeys%20offers%20tailormade%20and%20ready%20made%20trips%20in%20Africa%20while%20Tesfa%20Tours%20has%20a%20number%20of%20different%20community%20trekking%20tours%20throughout%20northern%20Ethiopia.%20%20The%20Ben%20Abeba%20Lodge%20has%20rooms%20from%20Dh228%2C%20and%20champions%20a%20programme%20of%20re-forestation%20in%20the%20surrounding%20area.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
Bombshell

Director: Jay Roach

Stars: Nicole Kidman, Charlize Theron, Margot Robbie 

Four out of five stars 

Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

The Scale for Clinical Actionability of Molecular Targets
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Updated: September 15, 2022, 4:34 PM`