Macroeconomy
The pattern of economic activity in Palestine is unusual. While economic activity and growth stimulators in conventional economies are largely related to internal economic variables and policies, the Palestinian economy operates in an environment rife with different internal and external risks and challenges, which significantly affect and change the economic situation. External challenges facing the Palestinian economy include the Israeli occupation and the multiple associated restrictions imposed over the years (internal and external closures), as well as restrictions on the freedom of movement of goods and people and access. The fluctuating flow of foreign grants has a direct impact on the performance of the Palestinian economy because they are considered an important source of revenue for the government.
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