The United Nations Trade and Development agency reported that the Palestinian economy is facing a severe crisis, especially in Gaza, where production levels have dropped significantly since Israeli forces responded to attacks in the territory on October 7. The report also highlighted a worrying economic decline in the West Bank due to Israeli settlements, land confiscations, demolitions, and settler violence.
Pedro Manuel Moreno, the deputy secretary-general of the agency, emphasized the urgent need for the international community to intervene and address the economic free fall in Palestinian areas to mitigate the humanitarian crisis and pave the way for long-term peace and development. He called for a comprehensive recovery plan, increased international aid, the lifting of Israel’s blockade on Gaza, and the release of withheld funds for Palestinians held by Israel.
Despite ongoing violence, there is little progress in launching a recovery plan. Mutasim Elagraa, who oversees the agency’s assistance to Palestinians, estimated that tens of billions of dollars and decades of support would be needed to restore Gaza to its pre-October 2023 state and put it on a sustainable development path.
The report revealed that economic output in Gaza had drastically decreased to just over $221 million in the last half-year period available, representing only 16% of the total figure from the same period in the previous year. In the West Bank, over 300,000 jobs have been lost, leading to an increase in unemployment rates from under 13% to 32%.
Furthermore, the agency noted that a vast majority of Gaza’s farming assets had been destroyed by early 2024, with over 80% of businesses suffering damage or destruction. The continued deterioration of economic conditions has exacerbated the situation.
According to the Palestinian Health Ministry, Israel’s offensive in Gaza has resulted in the deaths of at least 41,084 Palestinians and the injury of 95,029 others, with no distinction made between civilians and militants. Israel launched the campaign in response to an attack by militants linked to the group Hamas in southern Israel, where approximately 1,200 people were killed and 250 others were abducted.
