The Palestinian economy in East Jerusalem has been progressively isolated and constricted and now wields less than half of the economic influence that it had in 1993, a new UNCTAD report says. A disabling economic environment, high and rising rates of poverty, faltering industry and services, restricted investment, housing shortages, and inferior social and municipal services all combine to create hardship for the city's Palestinian inhabitants and to stifle their economy's potential, the report contends.