WB approves additional $40 million to Palestinian Authority

The World Bank Board on Thursday approved an additional $40 million grant for budget support to the Palestinian Authority.

The development institution also delivered a stark warning about the sustainability of growth in the West Bank and Gaza Strip in its latest report to the Ad Hoc Liaison Committee donor meeting.

The report, released ahead of the AHLC meeting scheduled for September 21 in New York, emphasizes the need for strong institutions and private sector-led growth to underpin any future Palestinian state, Jerusalem Post reports.

According to RTTNews, the economies of West Bank and Gaza are likely to grow markedly this year largely thanks to external aid, while private sector growth remains hampered by Israeli restrictions on movements of people and goods, a World Bank report has concluded.

The West Bank and Gaza economy continued to grow in the first half of 2010 and is likely to reach 8% this year, but this was still hugely reliant on external financial aid, the lender said.