IMF chief says Israel's war on Gaza 'devastating' Palestinian economy

The Israeli war on Gaza has devastated the economies of both the embattled enclave and the occupied West Bank, the International Monetary Fund's chief said Sunday, adding that only "durable peace" would improve the outlook.

"The Palestinian economy's dire outlook is worsening as the conflict persists," managing director Kristalina Georgieva told the World Governments Summit in Dubai.

"Only a durable peace and political solution will fundamentally change it".

"Economically, the impact of the conflict has been devastating," Georgieva said.

In the war-ravaged coastal territory, economic activity dropped 80 percent from October through December compared with a year earlier, the IMF chief said.

In the West Bank, the drop was 22 percent, she added. 

Reporting by AFP