Ramallah, Dec 21 (IANS): The Palestinian economy has recorded a decline of up to 12 per cent in 2020 because of the coronavirus pandemic, according to an official statement issued here.

In the joint statement, the Palestinian Monetary Authority and the Bureau of Statistics said that most economic activities have remarkably shrunk, which led to a significant decrease in the per capita income, reports Xinhua news agency.

In a bid to avoid the virus, the Palestinian authorities have imposed partial and comprehensive closure, especially in the second quarter of 2020, which affected the GDP.

"The total consumption in Palestine has declined by 6 per cent, while the investment has dropped by 36 per cent," the statement said.

Meanwhile, Palestine's trade volume reached $10 billion, down by 10 per cent year on year, it added.

However, it predicts that 2021 will witness a gradual return to normal economic activities, as the anti-coronavirus vaccine will soon become available in the Palestinian territories.

A World Bank report issued earlier this year said that after a fiscal crisis in 2019, the Palestinian economy was projected to slowly recover in 2020.

However, the Covid-19 outbreak has largely weighed on economic activity.

A quarter of Palestine's labour force are currently unemployed, while 24 per cent of Palestinians are currently living below the $5.5 PPP a day, even prior to the recent outbreak.