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World Bank report says Palestinian economic growth unsustainable due to foreign aid reliance
RAMALLAH, West Bank (AP) ¯¯¯ The World Bank says the Palestinian economy's recent growth is unsustainable because of its heavy reliance on foreign aid.
Donor countries have propped the Palestinian economy by giving billions of dollars. In a report issued Wednesday, the World Bank says the aid has led to 7.7 percent gross domestic product growth between 2007 and 2011, but only in government services, real estate and other non-tradable sectors.
In contrast, it said manufacturing and agriculture have dropped significantly.
The report said sustainable growth will only come through an emphasis on trade, integration and creating a dynamic private sector.
The study's author, John Nasir, said the Palestinian Authority has made steady progress toward establishing a future state "but the economy is currently not strong enough to support such a state."