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(Bloomberg) David Wainer - Driving around Ramallah in the West Bank, you might get the impression that the Palestinian economy is booming. Underground parking lots are brimming with Audis and BMWs, residential buildings are popping up at a frenetic pace, and cafes and restaurants are buzzing with customers. Helping drive the appearance of wealth is the emergence of a consumer loan market that was non-existent a decade ago. A 2008 law forced banks operating in the Palestinian territories to extend at least 40% of their credit to locals. But the overall picture for the West Bank's economy is still one of stagnation. Unemployment in the West Bank and Gaza is about 30% (versus 4.3% in Israel) and expected economic growth in the West Bank won't be enough to keep up with population growth, according to the World Bank. 2018-01-05 00:00:00Full Article
In the West Bank: A Credit Boom Waiting for a Real Economy
(Bloomberg) David Wainer - Driving around Ramallah in the West Bank, you might get the impression that the Palestinian economy is booming. Underground parking lots are brimming with Audis and BMWs, residential buildings are popping up at a frenetic pace, and cafes and restaurants are buzzing with customers. Helping drive the appearance of wealth is the emergence of a consumer loan market that was non-existent a decade ago. A 2008 law forced banks operating in the Palestinian territories to extend at least 40% of their credit to locals. But the overall picture for the West Bank's economy is still one of stagnation. Unemployment in the West Bank and Gaza is about 30% (versus 4.3% in Israel) and expected economic growth in the West Bank won't be enough to keep up with population growth, according to the World Bank. 2018-01-05 00:00:00Full Article
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