An-Najah News - Speaking at a press conference at the Prime Minister’s Office in Ramallah, Prime Minister Mohammad Shtayyeh announced that the novel coronavirus crisis would plunge the global economy into stagnation and recession, and cause Palestinian economic growth rates to largely decline and he noted that  the Palestinian economy will suffer from stagnation and recession but recovery is likely within 12 months.

He commented on the government’s efforts to bring down the budget deficit, which has increased to USD $1.4 billion.

Shtayeh elaborated We will attempt to cover some of the budget deficit using various means, whether by reducing expenditures, applying for bank loans, or requesting financial aid from regular donor countries and also we approached the Israeli side with a request to resolve some tax settlement issues related to the withheld tax revenues".

Nevertheless, Shtayyeh seemed optimistic when he said that the Palestinian economy would be able to recover within a maximum period of 12 months.

He pointed out that the set of precautionary measures adopted following the coronavirus outbreak would remain in place, though with a partial relax on Fridays.

He added that the government set up an initial $300 million fund as part of an economic recovery plan for micro-, small and medium-sized enterprises which are the most affected by the coronavirus crisis with support from Arab and Islamic funds.

The government  will offer urgent financial aid to some 30,000 Palestinian workers who lost their jobs following the coronavirus outbreak, besides to ILS 137 million ($38,360,000) in social allowances payments to additional 116,000 families, including 81,000 families in the besieged Gaza Strip he added

He assured Palestinian citizens about the flow of goods, foodstuff and agricultural products across border crossings, from Israel and between the various Palestinian districts.