UN warns of ‘staggering’ economic devastation in Gaza, occupied West Bank

Eighty percent of Gaza’s businesses person been damaged oregon destroyed since Israel launched its war, according to a UN report.

Israel’s war connected Gaza has devastated the Palestinian enclave’s economy, reducing it to little than one-sixth of its 2022 size, portion determination has besides been a “significant downturn” successful the occupied West Bank, according to a United Nations report.

“Production processes person been disrupted oregon decimated, income sources person disappeared, poorness has intensified and expanded, neighbourhoods person been eradicated, and communities and towns person been ruined,” a study published connected Thursday by the UN Trade and Development bureau (UNCTAD) found.

Mutasim Elagraa, who coordinates UNCTAD’s Palestinian assistance programme, said it remained unclear however overmuch it would outgo to rebuild.

“But the grounds we person present [indicates] it volition beryllium precocious tens of billions oregon possibly adjacent more,” helium told reporters successful Geneva.

“It volition instrumentality decades to bring Gaza backmost to wherever it was successful October 2023.”

Already by aboriginal 2024, UNCTAD said up to 96 percent of Gaza’s cultivation assets – including farms, orchards, irrigation systems, machinery and retention facilities – had been “decimated”.

This had crippled nutrient accumulation capableness and worsened the already towering fig of radical who bash not person capable nutrient to devour successful the besieged Palestinian territory, it said.

Eighty-two percent of businesses successful Gaza had besides been damaged oregon destroyed.

In the past 4th of 2023 alone, Gaza’s gross home merchandise (GDP) plummeted 81 percent, starring to a 22-percent contraction for the full year, the study found.

“By mid-2024, Gaza’s system had shrunk to little than one-sixth of its 2022 level,” UNCTAD said.

‘Rapid and alarming economical decline’

Spiralling unit successful the West Bank, meanwhile, has sparked a “rapid and alarming economical decline” determination arsenic well, the bureau warned, pointing retired that GDP determination had contracted 19 percent successful the last 4th of 2023.

Since October 7, Israeli soldiers and settlers person killed astatine slightest 662 Palestinians successful the West Bank, according to the Palestinian Ministry of Health.

At slightest 24 Israelis, including members of the information forces, person been killed successful Palestinian attacks during the aforesaid period, Israeli officials said.

Thursday’s study said factors similar colony expansion, onshore confiscation, demolition of Palestinian structures and accrued settler unit had displaced West Bank communities and severely impacted economical activities.

About 80 percent of businesses successful Jerusalem’s Old City person either partially oregon wholly ceased operations, UNCTAD said.

A Palestinian antheral walks past closed shops successful the Old City of Hebron successful the occupied West Bank connected June 13, 2023 [Jewel Samad/AFP]

High unemployment

Labour marketplace conditions crossed the Palestinian territory person besides worsened dramatically since October 7.

The study showed that 96 percent of West Bank businesses decreased enactment and much than 42 percent reduced their workforces.

In all, 306,000 jobs person been lost, pushing the West Bank’s unemployment complaint from astir 13 percent earlier Israel launched its warfare connected Gaza to 32 percent.

In Gaza, meanwhile, a afloat two-thirds of pre-war jobs – astir 201,000 positions – had been mislaid by January, the study showed.

It said unemployment successful the besieged territory reached 79 percent successful the last 4th of 2023, up from 46 percent successful the erstwhile quarter.

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Al Jazeera and quality agencies