Gaza’s Economy Shrinks to Less Than a Sixth of Its Pre-War Size

InfoQuest News Agency (13 Sep ’24)

The Gaza Strip’s economy has suffered a devastating blow, shrinking to less than a sixth of its size before the Israeli war, according to the United Nations Conference on Trade and Development (UNCTAD).

The war, which began on October 7, 2023, has left large parts of the Gaza Strip in ruins, with Israel launching military operations in response to the Hamas attack in southern Israel. The resulting destruction has had a lasting impact on the region’s economy.

The Palestinian government, which has limited autonomy in the Israeli-occupied West Bank, faces enormous pressures that hinder its ability to fulfill its duties. UNCTAD Deputy Secretary-General Pedro Manuel Moreno emphasized the need for a comprehensive recovery plan to address the humanitarian crisis and lay the foundations for peace and sustainable development.

The economic decline has been rapid, with over 300,000 jobs lost in the West Bank since the war began. The unemployment rate has skyrocketed from 12.9% to 32%, exacerbating the challenges faced by the Palestinian people.

The conflict has resulted in significant human suffering, with around 1,200 people killed and 250 taken hostage during the initial Hamas invasion. The subsequent Israeli attack on Gaza has claimed the lives of over 41,000 Palestinians, according to the Gaza Ministry of Health.

UNCTAD’s report highlights the urgent need for international intervention to address the economic decline and humanitarian crisis in the region. A comprehensive recovery plan is essential to support the Palestinian people and promote sustainable development.

By Worawit Sitthiwang/Kanitnuch Sirisut