25. Another issue that adds to the risks stems from uncertainty about policies that the new Israeli
government will adopt regarding the Israeli-Palestinian conflict. As the recent suspension
of clearance revenues demonstrates, the policies that the new Israeli government will adopt
regarding the transfer of Palestinian taxes, the restriction system and the peace negotiations
will have a substantial impact on the overall outlook. Furthermore, investor confidence will
also be affected by the stance the new Israeli government takes towards the two-state solution
and the Israeli-Palestinian conflict.
II. The Staggering Cost of Violence and Blockade on Gaza’s
Economy and Living Standards
Current Situation