As the global economy entered a sharp decline over the last year, the Palestinian economy “has done relatively well,” according to General Manager of the Bank of Palestine Hashim Shawa in an interview with Middle East Progress. He attributes the economy’s stability due to its low number of exports, thereby isolating it from the global decline. He also ascribes a change in Palestinian culture towards banking, as opposed to hoarding money “under the floor board and under the mattress,” as critical towards the strong foundation of Palestinian banks.
However, Shawa notes the immense disparity between the West Bank’s and Gaza Strip’s economies. While unemployment slightly decreased in the West Bank with businesses expanding, Gaza unemployment rose above 50 percent. For this reason, and due to the increased role of a black market in the Strip, Shawa calls for monetary, as well as aid shipments, into the Hamas controlled Gaza in order to help businesses expand and employ the population.
Moreover, in order to improve the Palestinian economy and banking system, Shawa called for partnerships between Israeli and Palestinian economic institutions, noting that trade between the two countries numbers at 20 billion shekels (approximately $5 billion)