Israel’s war on Gaza, curbs drive Palestinian economy to record collapse

UNCTAD warns 2 years of attacks and longstanding restrictions person driven occupied Palestinian territory’s system into its astir terrible contraction.

The system of the occupied Palestinian territory is facing its astir terrible illness connected record, driven by the standard of Israel’s warfare connected Gaza and continued restrictions connected question and trade, according to a caller United Nations report.

Published connected Monday, the study by the UN Conference connected Trade and Development (UNCTAD) said 2 years of Israeli subject operations and longstanding curbs person pushed the occupied territory into an economical downturn present ranked among the 10 worst collapses recorded globally since 1960.

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“Extensive harm to infrastructure, productive assets and nationalist services has reversed decades of socioeconomic advancement successful the Occupied Palestinian Territory,” it said, referring to the Gaza Strip and the West Bank, including East Jerusalem.

The concern successful Gaza constitutes “the astir terrible economical situation connected record”, it warned.

The work of the findings comes arsenic Israeli attacks connected Gaza continue, contempt a six-week ceasefire betwixt Israel and the Palestinian radical Hamas.

Israel’s battle began connected October 7, 2023, aft an onslaught connected confederate Israel by fighters from Hamas and different Palestinian groups, during which an estimated 1,139 radical were killed and astir 240 were taken into Gaza arsenic captives.

In response, Israel unleashed a bombing run and tightened its longstanding blockade connected Gaza, turning what had already been a 16-year siege into a full stranglehold. Its attacks have killed astatine slightest 69,733 radical and wounded 170,863, with much than 300 killed since the commencement of the ceasefire past month.

Falling GDP

According to the UNCTAD report, the Palestinian gross home merchandise (GDP) had regressed to its 2010 level by the extremity of past year, portion GDP per capita returned to the level seen successful 2003, erasing 22 years of improvement successful little than 2 years.

In Gaza, GDP plunged 83 percent successful 2024 compared with the erstwhile year, totalling an 87 percent driblet implicit 2 years to $362m. GDP per capita plummeted to $161, placing it among the lowest successful the world.

The study documented that astir 2 decades of Israeli‐imposed blocks connected trade, question and entree person generated near-total dependence connected outer aid, portion Israeli attacks person damaged astir 174,500 structures successful Gaza, propelling the enclave into “utter ruin”.

Meanwhile, the occupied West Bank is besides experiencing its astir terrible economical downturn connected record, with question and entree restrictions and the illness of jobs.

“Across the Occupied Palestinian Territory, the steepest economical contraction connected grounds has wiped retired decades of progress,” the study added.

The study says Israel’s withholding of fiscal revenues owed to the Palestinian Authority (PA) has importantly worsened the crisis, severely limiting the government’s quality to wage salaries, support services and concern reconstruction efforts.

The PA said connected Monday that Israel was withholding $4bn of taxation revenues.

The roadworthy to recovery

UNCTAD estimated that the outgo of reconstruction and betterment successful Gaza unsocial volition transcend $70bn and called for a broad betterment program that is backed by coordinated planetary assistance, the restoration of fiscal transfers and urgent measures to easiness constraints connected trade, question and investment.

“Even with important aid, betterment to pre-October 2023 GDP levels could instrumentality decades,” it said.

The bureau besides warned that without immediate, large-scale intervention, the demolition caused by Israel’s warfare and systemic restrictions volition trap the Palestinian system successful a semipermanent slump.

For immoderate meaningful recovery, UNCTAD said, the ceasefire achieved successful October indispensable beryllium durable.

“UNCTAD’s study calls for contiguous and important involution by the planetary assemblage to halt the economical freefall, code the humanitarian crisis, and laic the groundwork for lasting bid and development,” it added.