The Palestinian private sector in the West Bank is thriving, according to a report published on Sunday by the Israeli financial daily Globes, despite the Palestinian Authority’s financial difficulties.

The Palestinian public sector is struggling because until last week the P.A. refused to receive taxes collected for it by Israel, due to Israel’s deductions of the sums paid by the P.A. to terrorists and their families. P.A. leader Mahmoud Abbas has cut salaries of senior P.A. officials and fired 20 out of 30 advisers, according to the report.

Israel transferred approximately half of the funds last week, amounting to some NIS 2 billion ($570 million).

The private sector, however, is thriving, for a variety of reasons, according to Globes.

Foreign investment and aid is still flowing into the Palestinian territories, according to the report, an in addition exports from the West Bank into Israel are growing. Many Israeli Arabs are also shopping in Palestinian areas in the West Bank.

Another reason for the good economy, according to Globes, is that 130,000 Palestinian workers are employed in Israel, making on average two-and-a-half times the average salary in the territories.

Furthermore, new building in the settlements is contributing to an increase in well-paying construction jobs.

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