Question

What is the effect of corona on Palestinian economy?

*coronavirus

Answer 1

Covid 19 or coronavirus has had and continues to have a major impact on the global economy. While social and political conditions between countries are improving, the economy of every single country big or small is getting majorly effected.

Palestine is no exception to the impact of coronavirus. There is a huge part of the population that is highly vulnerable. It is this segment that is the most effected. The current situations for restrictions have had a negative impact not only on the economy but also public welfare, employment, stability of the financial institutions. Even with a considerably low number od cases and deaths, the economy has been equally hit hard.

The economy’s major backbone has been tourism. This has been one of the major industries that has been hit hard and will take the longest to recover with predictions of never going back to the per-pandemic levels. A lockdown if continued for 6 months would lead to a drop in the GDP by about 7%. The government has limited resources and control over the economy and hence majorly depends on fund transfers from its neighbours. Since the economy depended heavily on tourism, the government needs to come up with ways new jobs and industries can be developed to boost the economy.