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Rabat – The Israeli Occupation Forces’ (IOF) ongoing genocide in Gaza has decimated Gaza’s economy, reducing it to less than one-sixth of its pre-war size, the United Nations reported Thursday. The report also added that the West Bank is facing an “alarming decline.”
More than 11 months after the genocide erupted in Gaza, the UN has described the scale of economic devastation as “staggering.” On a humanitarian level, the situation is exceptionally dire, as the death toll has surpassed 41,020, according to Gaza’s health ministry.
Beyond the immense human toll, the UN Conference on Trade and Development (UNCTAD) highlighted the severe impact the war has had on the economic conditions of both Gaza and the occupied West Bank
The destruction of Gaza’s agricultural infrastructure has been particularly catastrophic. By early 2024, up to 96% of the enclave’s farms, orchards, and food production facilities had been “obliterated,” according to the report.
This devastation has crippled Gaza’s food production capacity, exacerbating already dire levels of food insecurity.
Furthermore, an estimated 82% of businesses in Gaza have been damaged or destroyed, contributing to a rapid economic collapse. In the last quarter of 2023 alone, Gaza’s gross domestic product (GDP) plummeted by a staggering 81%, resulting in a 22% contraction for the year.
“By mid-2024, Gaza’s economy had shrunk to less than one-sixth of its 2022 level,” the UNCTAD report stated.
West Bank under strain
In the West Bank, violence has led to a similarly dire situation. Since October 7, at least 662 Palestinians have been killed by the IOF.
UNCTAD warns of a “rapid and alarming economic decline” in the region, driven by factors including settlement expansions, land confiscation, and the destruction of Palestinian infrastructure.
These actions, combined with increased checkpoints and settler violence, have significantly disrupted economic activities, with 80% of businesses in East Jerusalem’s Old City either closing or severely reducing operations.
Optimism for the West Bank’s economy had briefly surfaced in early 2023, with a 4% GDP growth reported during the first three quarters. However, the IOF aggression has reversed this progress, leading to a sharp 19% economic contraction in the final quarter of the year.
For 2023, the West Bank’s overall GDP shrank by 1.9%, while per capita GDP dropped by 4.5%.
Financial crisis and job losses
The Palestinian government’s fiscal stability is also under immense pressure, the report noted. Israel, which controls two-thirds of Palestinian fiscal revenue, has withheld more than $1.4 billion in Palestinian tax funds over the past five years, exacerbating the financial crisis.
This amounted to over 8% of the Palestinian GDP in 2023 alone, further straining public services. Labor market conditions across the Palestinian territories have deteriorated dramatically.
In the West Bank, 96% of businesses reported decreased activity since the conflict began, with 42% reducing their workforce. By early 2024, over 306,000 jobs had been lost, pushing unemployment rates in the West Bank from 13% before the war to 32%.
In Gaza, the situation is even more severe. Approximately two-thirds of pre-war jobs – around 201,000 positions – were lost by January 2024. Unemployment in the besieged territory surged to 79% in the final quarter of 2023, compared to 46% just a few months earlier.
Israel genocide, Gaza humanitarian situation, Israel agression, UN GAZA crisis, Israel war crimesEven before the war, poverty levels were high, but the genocide has pushed almost the entire population of Gaza into poverty. “Poverty affects nearly the entire population of Gaza and is rising rapidly in the West Bank,” the report concluded.
