Mutasim Elagraa (UNCTAD)
In a new study, UNCTAD analyses the relationship between Palestine’s trade and budget deficits, and the sources of macroeconomic instability.
It finds that there is no causal link between the budget deficit and the trade deficit as commonly assumed, since both are symptoms of deeper problems caused by constraints imposed by the occupation.
The study highlights the inadequacy of orthodox policy recommendations to address the Palestinian resource gap and the restoration of a macroeconomic equilibrium.
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