The Palestinian territories have suffered one of the largest economic shocks on record, the World Bank has said, with nearly every Gaza resident living in poverty.
According to a new report by the international financial institution, Israel’s bombardment of Gaza in late 2023 caused its economy to contract by 24pc for the whole year, and by more than 80pc in the final three months of the year.
The report said that Gaza’s gross domestic product (GDP), which measures the total value of goods and services produced in the territory, plunged from £529m in the third quarter of 2023 to £71m in the fourth quarter, a drop of 86.6pc.
The report also said that Gaza’s per capita income, which measures the average income of each person in the territory, fell from £1,029 in 2022 to £287 in 2023, a decline of 72.1pc.
As a result, Gaza’s poverty rate, which measures the proportion of people living below the poverty line of £3.20 per day, soared from 53pc in 2022 to 97pc in 2023, meaning that nearly every Gazan was living in poverty.
The report further said that Gaza’s unemployment rate, which measures the proportion of people who are able and willing to work but cannot find a job, rose from 49pc in 2022 to 64pc in 2023, meaning that nearly two-thirds of Gazans were jobless.
In addition, the report said that Gaza’s humanitarian situation, which measures the access and availability of basic needs such as food, water, health, and education, deteriorated dramatically, as Israel‘s war destroyed or damaged thousands of homes, schools, hospitals, and infrastructure, and disrupted the delivery of essential services and supplies.
October 7th
The report described the shock to the Palestinian economy since Israel began its military operation against Hamas militants in Gaza on October 7, 2023, after Hamas attacked Israel, as one of the largest “recorded in recent economic history”.
The report said that the war, which lasted for 50 days and killed more than 29,000 Palestinians and 2000 Israelis, was the most devastating war between Israel and Hamas since 2008, and that it had a “catastrophic and long-lasting” impact on the Palestinian economy and society.
The report said that the war not only affected Gaza, but also the West Bank, which is controlled by the Palestinian Authority, and which also witnessed a decline in its economic activity and performance, due to the spillover effects of the war, such as the closure of borders, the disruption of trade, the reduction of remittances, and the increase of insecurity and violence.
The report said that the West Bank’s economy contracted by 4.5pc in 2023, and that its per capita income fell from £2,372 in 2022 to £2,263 in 2023, a drop of 4.6pc.
Moreover, the report said that the West Bank’s poverty rate increased from 14pc in 2022 to 17pc in 2023, and that its unemployment rate rose from 15pc in 2022 to 18pc in 2023.
The report also said that the West Bank’s humanitarian situation worsened, as Israel’s war and its ongoing occupation and settlement expansion violated the human rights and the dignity of the Palestinian people, and restricted their movement, access, and development.
The report called for an urgent and comprehensive recovery and reconstruction plan for the Palestinian territories, and for the international community to provide generous and sustained financial and technical support to the Palestinian people and authorities.
The report also called for an immediate and unconditional ceasefire and an end to the hostilities and the violence, and for a resumption of the peace talks and the negotiations, based on the two-state solution and the international law, to address the root causes and the underlying issues of the Israeli-Palestinian conflict, and to achieve a just and lasting peace in the region.
