The Palestinian Authority had a $1.7 billion deficit in 2012 as economic growth
dropped and unemployment rose, according to a World Bank report published
Tuesday in advance of a March 19 international donor conference in
The report warned that the situation would only worsen in 2013
if the Israeli-Palestinian conflict continued and if better business practices
were not put in place.
It particular, it noted that the manufacturing
sector needs to grow and expand into higher value-added items, such as
technology and pharmaceuticals.
Palestinians must also send products to a
much wider list of countries, rather than depending almost entirely on Israel to
be their main trading partner.
In 2011, according to the report, 86
percent of Palestinian exports went to Israel.