War plunges Gaza and West Bank into economic crisis of “staggering magnitude”, UN warns

A cry of alarm. The war waged by Israel against Hamas for more than 11 months has caused a “devastation” economic of a “stunning magnitude” in Gaza and by ricochet in the West Bank, denounced the UN on Thursday September 12. In the Gaza Strip, the Israeli military operation after the attacks of October 7 “has caused unprecedented humanitarian, environmental and social crises and transformed the region from one of underdevelopment to one of devastation,” highlights a report from the United Nations Conference on Trade and Development (UNCTAD).

The Israeli military operation has killed more than 41,000 people in Gaza, according to the Hamas-controlled territory’s health ministry. In addition to the devastating human toll, the economic toll is catastrophic. The report’s authors estimate that Gaza’s gross domestic product (GDP) “fell by 81% in the last quarter of 2023, leading to a contraction of 22% over the whole year”By early 2024, between 80% and 96% of Gaza’s agricultural assets – including irrigation systems, livestock farms, orchards, machinery and storage facilities – “were decimated”underlines UNCTAD.

The Hamas attack and Israeli retaliation also exacerbated tensions in the neighboring West Bank and caused an economic decline. “as fast as it is alarming.” Since October 7, Israeli forces and Israeli settlers have killed at least 662 Palestinians in the territory, according to the Palestinian Health Ministry.

While the West Bank posted growth of 4% in the first nine months of last year, optimism has been “suddenly wiped out by an unprecedented 19% contraction in the fourth quarter”leading “a substantial drop in the standard of living and household income”. Even East Jerusalem is being hit hard. The report states that “80% of the businesses in the old town” have partially or completely ceased their activities.