Palestinian economy lies decimated

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According to the United Nations Conference on Trade and Development, thePalestinian economy has been decimated by the uprising against Israel that began in 2000, and it says that the separation barrier being built by Israel in the West Bank will erode the economy even further. The UN agency said that the Palestinian economy shrank by 1 percent in 2004. One-third of Palestinians were out of work at the end of the year, and 61 percent of Palestinian households were living below the poverty level, defined as an income below $350 per month. Imports from Israel make up two-thirds of the Palestinian trade deficit of $2.6 billion dollars. In addition, 80,000 workers who had formerly worked in Israel must be absorbed into the economy. The separation wall, which Israel isbuilding as what they call a security measure to exclude suicide bombers from Israel, will erode many Palestinians ability to support their families, according to the UN agency, which says that the practical effect of the wall will be to fragment the Palestinian production base and resources. The agency estimates that $6.4 billion dollars of goods and services were not produced in past five years due to the conflict between Israel and the Palestinians, and it estimates capital stock losses at $3.5 billion in that period.