UN Report: Gaza's Economy Collapses, West Bank Unemployment Soars
A UN report reveals Gaza's economy has shrunk to less than one-sixth its pre-war size, while West Bank unemployment has nearly tripled. The Palestinian Authority faces immense pressure as international aid declines.
A recent UN report highlights the severe economic challenges facing Palestinians in Gaza and the West Bank, nearly a year after the outbreak of conflict between Israel and Hamas. The United Nations Conference on Trade and Development (UNCTAD) has revealed alarming statistics about the region's economic decline.
According to the report, Gaza's economy has contracted to less than one-sixth of its pre-war size. This dramatic shrinkage is a direct result of the ongoing conflict, which has left much of the Gaza Strip in ruins. The densely populated area, home to over 2 million people, has long faced economic challenges due to the Israeli-Egyptian blockade imposed since 2007.
In the occupied West Bank, the situation is equally dire. Unemployment has nearly tripled, rising from 12.9% to 32%. This surge in joblessness has resulted in the loss of over 300,000 jobs since the conflict began. The report attributes this decline to increased unrest and new Israeli trade restrictions, including additional checkpoints.
The Palestinian Authority (PA), which exercises limited self-rule in the West Bank, is under "immense pressure" that threatens its ability to function effectively. The PA, established in 1994 as part of the Oslo Accords, has been grappling with declining international aid and revenue deductions by Israel. UNCTAD estimates that these deductions have amounted to more than $1.4 billion since 2019.
Pedro Manuel Moreno, UNCTAD Deputy Secretary General, described the Palestinian economy as being "in freefall." He emphasized the need for international intervention to halt this economic decline, address the humanitarian crisis, and establish the groundwork for lasting peace and development.
The report calls for a comprehensive recovery plan and increased international aid. This is particularly crucial for Gaza, which relies heavily on foreign assistance and imports for basic necessities. The territory's fishing industry, once a significant economic contributor, has been severely restricted due to Israeli naval blockades.
In the West Bank, the economic situation is complicated by the division into Areas A, B, and C, each with different levels of Palestinian and Israeli control. The separation barrier between Israel and the West Bank, considered illegal under international law, has had significant economic impacts on Palestinian communities.
Despite these challenges, there are some signs of resilience. The tech sector in the West Bank, particularly in cities like Ramallah, has shown growth potential. Agriculture also remains a significant sector in the Palestinian economy, especially in the West Bank.
The UNCTAD report underscores the urgent need for international support to stabilize the Palestinian economy and lay the foundation for future development. As the region approaches the one-year mark since the outbreak of hostilities, the path to economic recovery remains fraught with challenges.
"The PA of supporting the Oct. 7 attack on Israel."
It's important to note that the PA denies these allegations and maintains its commitment to non-violent resistance. The international community continues to grapple with the complex task of balancing security concerns with the pressing need for economic development in the Palestinian territories.
