How Israel’s Financial Chokehold Is Stifling the West Bank Economy

Israeli pressure on the West Bank has sent the occupied territory to the brink of financial collapse as severe restrictions have touched every part of daily life and caused an economic crisis. Since the Hamas-led attack on Israel on Oct. 7, 2023, Prime Minister Benjamin Netanyahu’s government has stopped thousands of Palestinians from working in Israel, withheld billions of dollars of tax revenues and enforced banking restrictions that have harmed business. The Palestinian Authority, which administers parts of the West Bank, has been forced to cut spending on salaries and public services because of the sharp fall in revenues. The reductions have been felt acutely in sectors such as health care, with pharmacies routinely running out of medicines as the government allocates less money to buy them. The budget cuts have also forced clinics to open only a few days a week and hospitals to operate with fewer doctors and nurses. Ibtisam Hammad, 54, was diagnosed with breast cancer three months ago. After a hospital appointment in the West Bank city of Ramallah, she made her way to a pharmacy to collect her medications. Only three of her six prescriptions were in stock. “I’m lucky,” Ms. Hammad said, smiling despite her exhaustion. “Last time, they only had one.” Ms. Hammad’s trouble getting medicines were indicative of wider economic problems. The Palestinian Authority has often warned of a financial collapse that never materialized, but there are growing concerns about how long it can remain solvent. “We’re facing a huge problem,” Mohammed Mustafa, the authority’s prime minister, said in an interview. “Everyone has been affected.” Unemployment rate in the West Bank Source: Palestinian Central Bureau of Statistics. Adina Renner/The New York Times We are having trouble retrieving the article content. Please enable JavaScript in your browser settings. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in . Want all of The Times? Subscribe .