Growth expected with Palestinian reconciliation

17 June 2011

Reconciliation between the West Banks Fatah leadership and the Gaza Strips ruling Hamas movement will spur growth in both territories, the Palestinian Authority presidents top economic adviser said.

The move to heal the four-year schism between President Mahmoud Abbass Fatah organization and Hamas may lead to 20 percent annual growth in Gaza, Mohammad Mustafa said. West Bank growth may exceed 13 percent over the next two years, he said.

Growth in the West Bank and Gaza Strip was 9 percent in 2010, the International Monetary Fund said in a report in April.

Best-case scenario, if the reconciliation is implemented and the border crossings of Gaza are opened not only for people but also for goods, I believe we can easily reach 20 percent growth in Gaza, Mustafa said in an interview in Dubai.

Mustafa is chairman and CEO of the Palestine Investment Fund, the Palestinian Authoritys primary vehicle for bringing in foreign investment.