JERUSALEM — A fiscal crisis facing the Palestinian Authority will deepen unless foreign donors increase their support and Israel lifts a web of restrictions in the West Bank that hinder private investment needed to drive economic growth, the World Bank said in a report.
Issued ahead of a meeting of donor nations next week in New York, the report follows a recent wave of protests in the West Bank set off by increases in the price of fuel and other basic goods. The protests unsettled the Palestinian Authority, which governs parts of the West Bank and is struggling to pay salaries because of a shortfall in foreign aid, particularly from Arab states.
‘‘Donors need to act urgently,’’ Mariam Sherman, the World Bank’s country director for the West Bank and Gaza Strip, said in a statement.
The report says the crisis will probably worsen, with the Palestinian Authority facing a projected $1.5 billion deficit by the end of the year and with only $1.14 billion in donor pledges to close the gap.
The Palestinian Authority is largely dependent on foreign aid, most of it from the United States, the European Union, and Arab countries.
Even with financial support, the report warns, sustainable Palestinian economic growth will be impeded unless Israel lifts physical and administrative restrictions in the 61 percent of the West Bank under its direct control, known as Area C.
The area, where Israeli settlements are located, holds most of the West Bank’s water, farmland, natural resources, and land reserves, according to the report.