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International Crisis Group Says West Bank Economy Nears Collapse Under Israeli Restrictions

The report says movement curbs, tax withholding and land seizures have cut output, with unemployment near 30% and no transfers since May 2025.

  • A new report from the International Crisis Group warns the West Bank economy is nearing collapse as Israel maintains restrictive measures limiting Palestinian movement and withholding revenue.
  • Since the start of the Israel-Hamas war, the roughly 3.4 million Palestinians in the West Bank have faced roughly 30% unemployment, while Israel revoked work permits for nearly 200,000 people.
  • The Palestinian Authority faces severe financial crisis as Israel has withheld tax revenue, with no transfers made since May 2025, leaving public services unable to fund hospitals and schools.
  • Israeli policies appear designed to "advance Israel's own declared goal of extending its control and preventing a Palestinian state from emerging," according to the report.
  • Joost Hiltermann, International Crisis Group's special adviser for the Middle East and North Africa, warns "absent remedies, the result will likely be a loss of hope and a growing risk of instability and greater violence.
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The economy in the occupied West Bank is being dismantled, report says

A new report from the International Crisis Group is warning that the occupied West Bank's economy is nearing collapse due to Israeli restrictions.

·New York, United States
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The economy in the West Bank is reeling into collapse as Israel maintains a network of restrictions that limits opportunities for Palestinians living under prolonged military occupation, according to a new report by a prominent conflict observatory.

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Winnipeg Free Press broke the news in Winnipeg, Canada on Monday, June 15, 2026.
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