2011-04-06

Palestinian Economy Gets Key Endorsement - WSJ.com

TEL AVIV—The International Monetary Fund gave the Palestinian Authority high marks on government reform and said it was ready to manage a sovereign economy, a key endorsement as Palestinians mount a campaign seeking statehood recognition.

The IMF report, released Tuesday from its headquarters in Washington, D.C., praised the Western-backed authority for a "solid track record'' of increasing fiscal transparency and discipline, reducing dependence on donor aid and boosting supervision of local banks.

"The PA is now able to conduct the sound economic policies expected of a future well-functioning Palestinian state,'' said the report, which was prepared ahead of a meeting of a group of donor countries furnish aid to the authority.