World Bank warns about increase of poverty among Palestinians

The World Bank approved a $30 million development policy grant to Palestine to support the implementation of digital initiatives to strengthen its economy, help it recover from the pandemic-induced slow down and to improve governance.

The grant will help provide financing to ease fiscal stress caused by the Covid-19 pandemic and the Israeli bombardment of Gaza.

Poverty among Palestinians living in the densely populated Gaza Strip is expected to undergo a "dramatic increase", the Washington-based multilateral lender said on Saturday.

Every second Palestinian in Gaza is currently living below the poverty line, according to World Bank estimates.

"With the continuation of the Covid-19 crisis and the impact of the 2021 Gaza conflict, the poverty rate is expected to have further increased," the World Bank said.

The lender's announcement comes after the UN launched a snap appeal of $95 million to help Palestinians rebuild their lives after an 11-day conflict with Israel. While the reconstruction costs are expected to run into billions of dollars, the UN's appeal aims to meet the short-term needs of Palestinians.
 

"The development policy grant offered by the World Bank will support the already fragile fiscal situation," Kanthan Shankar, World Bank country director for West Bank and Gaza, said.