The economy of the occupied Palestinian territory is on the verge of collapse, a new UNCTAD
report warns. Dwindling donor support has left the Palestinian Authority (PA
) in a perilous financial position and UNCTAD
projections indicate that per capita income for 2006 will be half pre-2000 levels, unemployment will affect half the Palestinian workforce by the end of the year, and two out of three Palestinian households will fall below the poverty level. The report cautions that even under a more positive scenario of increased aid, greater mobility, and the resumption of Israeli transfers of tax revenues to the PA
, the Palestinian economy is unlikely to achieve sustained growth.