It emphasizes the urgent need to remove the restrictions to help provide the economic base necessary to reverse the current trend of socioeconomic deterioration in the region.

UNCTAD's comprehensive report, "Economic costs of the Israeli occupation for the Palestinian people: The welfare cost of the fragmentation of the occupied West Bank", underscores the severe economic impact of Israeli restrictions on Palestinian households in the West Bank's Area C.

Even prior to the recent tightening on 7 October, these measures imposed significant challenges, inflating costs and restricting access to vital resources.

Area C, constituting 60% of the West Bank, remains under full Israeli control, with additional hurdles such as stringent construction permit requirements, resulting in less than 1% approval since 2016.

The report advocates removing all restrictions on economic activity in all areas (A, B and C) as a pivotal step towards ending the occupation and fostering a two-state solution.

Lowering restrictions could double household expenditure

According to the report, just lowering restrictions in Area C to match those in Areas A and B could potentially double household expenditure in parts of Area C, injecting an estimated $4.4 billion into the economy in 2017. This represents a substantial 57% growth in expenditure, fostering economic growth, job creation, and expanding fiscal resources for the Palestinian government.

UNCTAD emphasizes the urgent need to remove the economic restrictions in the Palestinian Occupied Territory, echoing the United Nations' call for an independent Palestinian State based on a two-state solution, as such measures are crucial to providing the economic base necessary to reverse the current trend of socioeconomic deterioration in the region.