UN envoy says Palestine lost over $ 500 mln since start of intifada

The Palestinian economy has lost over $ 500 million since the start of the Intifadah, two months ago, says a report on the economic situation in the Palestinian territories published by the UN envoy to the Middle East, Terje Roed-Larsen.

The UN envoy who is undertaking a visit to the Palestinian autonomous territories said he is "deeply worried" over the economic situation of Palestinians and added that the Israeli army's closure of the territories is counter-productive.

He said over 260,000 Palestinians are without a job in the West Bank and Gaza Strip, accounting for 40% of active population. Meanwhile, according to World Bank statistics, poverty is affecting 32% of the population and almost half of Palestinians are living with less than $ 2.1 a day.

Any additional day in the crisis incurs a loss of $ 10 million, in addition to damages to infrastructures.

In Washington, the World Bank announced an emergency aid of $ 12 million to the west bank and Gaza strip to alleviate effects of the economic crisis. The amount will be used to create temporary jobs for skilled and semi-skilled workers. The World Bank says the program is also meant to encourage other donors.