The Palestinian economy is in one of its most wretched conditions. Israeli restrictions are largely to blame, as poverty rates in the Gaza Strip and West Bank have soared to 79.4 per cent and 45.7 per cent respectively. With a growing population and a shrinking economy, real per capita GDP is now 30 per cent below its height in 1999. The current physical obstacles placed on the Palestinian economy by Israel has paralysed the Palestinian economy. No economy can flourish under occupation, whose very intention is the disempowerment of Palestinian workers, farmers and the middle class. Owing to lack of developmental projects and Israeli restrictions, the declining Palestinian economy is increasingly reliant on foreign aid. More aid would not revive the Palestinian economy, unless the Israeli restrictions are removed.