The recent war in Gaza will result in a reversal of seven years of growth in the Palestinian economy, which is now expected to shrink by nearly 4% this year, the World Bank has said.

It said Gaza would see a contraction of as much as 15%, while a slight recovery in the fourth quarter could push West Bank growth to about 0.5%.

The bank’s report said the downturn was a result of the 50-day war between Israeli forces and militants in Gaza, restrictions on the flow of goods into the enclave by Israel and Egypt and a drop in foreign aid to the Palestinian Authority (PA).

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