UN: "Gaza Strip GDP Plummets 81% Due to War... 200,000 Jobs Lost"

The United Nations reported that the local economy in the Gaza Strip, Palestine, is also facing a severe crisis as the armed faction Hamas and the Israeli military have been engaged in war for over 10 months.

Black smoke is rising from the Nuseirat refugee camp in the Gaza Strip, which was hit by an Israeli airstrike. / Photo by Yonhap News

According to a report released on the 10th (local time) by the United Nations Conference on Trade and Development (UNCTAD), the Gross Domestic Product (GDP) of the Gaza Strip plummeted by 81% since the outbreak of the war in October last year. The report stated that as of mid-this year, the GDP of the Gaza Strip is only about one-sixth of that in 2022.

It was analyzed that the main causes were the destruction of 80-90% of agricultural facilities in the Gaza Strip amid the conflict and 82% of businesses struggling to operate due to airstrike damage. Jobs are estimated to have decreased by 201,000 as of January this year compared to before the war. According to the report, this corresponds to two-thirds of all jobs.

The economic contraction in the West Bank of the Jordan River also deepened. Immediately after the outbreak of the Gaza Strip war, incidents of settler violence and the demolition of Palestinian residential facilities by Israel continued in the West Bank area, resulting in a 19% decrease in GDP in the fourth quarter of last year.

The report diagnosed, "Even before the outbreak of the war, 80% of the total population in the Gaza Strip depended on international aid for their economic livelihood," and "After the war, the entire population is affected by poverty, and the number of people in poverty is rapidly increasing in the West Bank as well."

UNCTAD stated, "The prolonged conflict remains a major obstacle to the economic development of Palestine," and added, "To prevent the free fall of the local economy, it is necessary to establish peace, expand international aid, lift the blockade of the Gaza Strip, and formulate a comprehensive economic recovery plan."