The economy of the Palestinian village of Nilin in the West Bank has been severely impacted by the closure of an Israeli checkpoint [577a7a23][4308a5e4]. Prior to the closure, the village relied on Israeli workers and shoppers crossing the checkpoint. However, since October 7, when Hamas militants attacked Israel, Palestinian workers have been barred from entering Israel [4308a5e4]. As a result, Nilin is facing a dire economic crisis, with a third of its residents unemployed and a 40% drop in commercial revenue [4308a5e4]. The lack of Palestinian workers has also affected Israel's economy, particularly the construction industry, which has come to a complete freeze and is losing $830 million per month [4308a5e4][577a7a23].
The economic crisis in Nilin is compounded by the Palestinian Authority's inability to pay full salaries due to Israel withholding tax revenues [577a7a23][4308a5e4]. The Palestinian economy in the West Bank contracted by over a fifth in the last quarter of 2023, with daily losses amounting to $25 million [577a7a23]. This crisis weakens the Palestinian Authority and raises concerns about its ability to govern a future Palestinian state [577a7a23][4308a5e4].
The closure of the Israeli checkpoint has had a devastating impact on the economy of Nilin, leading to high unemployment rates and a significant drop in commercial revenue. The situation highlights the interconnectedness of the Palestinian and Israeli economies, with both sides experiencing negative consequences as a result of the closure [577a7a23][4308a5e4]. Efforts are needed to address the economic crisis in Nilin and find a solution that benefits both the Palestinian and Israeli populations [577a7a23][4308a5e4].