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

The United Nations Conference on Trade and Development (UNCTAD) has reported a devastating decline in Gaza’s economy, shrinking to less than a sixth of its size before the Israeli war. This alarming trend is accompanied by a significant rise in unemployment rates in the West Bank, highlighting the immense challenge of recovery.

The Gaza Strip has been in ruins for over 11 months following Israel’s military operations in response to the Hamas attack in southern Israel on October 7. The Palestinian government, with limited autonomy in the Israeli-occupied West Bank, faces enormous pressures that hinder its ability to fulfill its duties.

Unemployment Rates Soar in the West Bank

UNCTAD reports that more than 300,000 jobs have been lost in the West Bank since the war began, resulting in a significant increase in the unemployment rate from 12.9% to 32%. This drastic rise in unemployment poses a substantial challenge to the region’s economic recovery.

Humanitarian Crisis and Call for Comprehensive Recovery Plan

“The Palestinian economy is in rapid decline,” stated UNCTAD Deputy Secretary-General Pedro Manuel Moreno during a press conference in Geneva. “The report calls on the international community to end this economic decline, resolve the humanitarian crisis, and lay the foundations for peace and sustainable development.” Moreno emphasized the need for a comprehensive recovery plan to address the region’s economic and humanitarian challenges.

Consequences of the War

The war, which began on October 7, 2023, resulted in the deaths of around 1,200 people and the taking of 250 hostages. In retaliation, Israel launched a heavy attack on Gaza, leading to the deaths of over 41,000 Palestinians, according to the Gaza Ministry of Health.

Image: Worawit Sitthiwang/Kanitnuch Sirisut