The World Bank said it has earmarked $55 million for Palestinian development this year.
Mariam Sherman, country director for the West Bank and Gaza, said Saturday the money will be used to assist businesses, help graduates and support Palestinian government institutions.
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But Sherman said for real growth to happen, Israel's system of restrictions on movement of Palestinian people and goods needs to be eased.
The World Bank said Israel should also share tax information and make other changes.
According to Sherman, projections for 2012 show a slowdown in Palestinian growth, mostly because donor aid, used to pump up the Palestinian public spending, is declining.
Israeli officials say restrictions are meant to ensure security, and that they've eased some measures in recent years.