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World Bank sees Palestinian fiscal crisis worsening

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A fiscal crisis facing the Palestinian Authority will deepen unless foreign donors increase their support and Israel lifts a web of restrictions in the West Bank that hinder private investment needed to drive economic growth, the World Bank said in a report released Wednesday. The report follows a recent wave of protests in the West Bank set off by increases in the price of fuel and other basic goods. The protests unsettled the Palestinian Authority, which governs parts of the West Bank and is struggling to pay salaries because of a shortfall in foreign aid, particularly from Arab states.

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