The main body of the report is organizedin two chapters with one annex. Chapter one focuses onrecent economic developments in the real, fiscal and bankingsectors, while providing a near term outlook that highlightscritical challenges facing the Palestinian economy. Chaptertwo provided input on a vision for Gaza developmentincluding performance of the Gaza economy, living standardsof the people of Gaza and strategy for Gaza development. Itexplores the nature of the decline of the Gazan economy andidentifies the needs going forward. The annex assesses thestatus of the World Bank recommendations to the AHLC meetingover the years. The annex discusses fiscal sustainability,economic development and Gaza reconstruction and recovery.