War, Blockade, and Collapse: Palestinian Economy Falls Back 22 Years in Less Than Two

Gaza’s shattered economy turns to digital apps for survival amid cash shortage (Aljazeera)

# Internasional

The United Nations Conference on Trade and Development (UNCTAD) has reported that the economy of the occupied Palestinian territory is experiencing its most severe collapse on record, driven by Israel’s war on Gaza and longstanding restrictions on movement and trade. The report states that two years of military operations have reversed decades of socioeconomic progress in both Gaza and the West Bank, placing the economic downturn among the 10 worst global collapses since 1960. It warns that Gaza is now facing the most extreme economic crisis ever documented.

Despite a six-week ceasefire, Israeli attacks on Gaza have continued, deepening the devastation. Israel’s assault, which began after the October 7, 2023 Hamas-led attack, has resulted in tens of thousands of deaths and a tightening of the blockade. UNCTAD’s findings show that by the end of last year, the Palestinian GDP had regressed to 2010 levels, with GDP per capita falling back to levels last seen in 2003, effectively erasing more than two decades of development in under two years.

In Gaza, the economic collapse has been catastrophic, with an 83 percent drop in GDP in 2024 and an overall 87 percent decline across two years. The destruction of 174,500 structures and longstanding Israeli restrictions have left Gaza almost entirely dependent on external aid. The West Bank is also suffering its worst economic downturn on record due to severe movement restrictions and job losses, contributing to a territory-wide economic contraction unprecedented in its severity.

The crisis has been exacerbated by Israel’s withholding of $4bn in tax revenues owed to the Palestinian Authority, severely affecting its ability to pay salaries, maintain public services, and finance reconstruction efforts. UNCTAD estimates that rebuilding Gaza alone will require more than $70bn, warning that the scale of destruction and economic paralysis could trap the Palestinian economy in a prolonged slump without immediate and large-scale international intervention.

UNCTAD concludes that recovery to pre-October 2023 economic levels could take decades, even with substantial aid. It calls for a durable ceasefire, restoration of fiscal transfers, and urgent measures to ease restrictions on trade and movement. The report urges the international community to take immediate action to halt the economic collapse, address the humanitarian crisis, and help create the foundations for long-term stability and development.

Views: 15 Likes: 1 Shares: 0

Source: Aljazeera

1

Komentar:

Kembali ke Berita Utama