The occupied Palestinian territories are facing an unprecedented economic collapse as a result of Israeli military actions, according to a UN report published on Thursday.
The humanitarian situation in the Gaza Strip, where war has been raging since the October 7 attacks on Israel, is “beyond catastrophic”, the UN said.
The UN Conference on Trade and Development (UNCTAD) in Geneva reported that the Gaza Strip’s gross domestic product (GDP) “fell by 81% in the last quarter of 2023, leaving the economy in ruins.”
This equates to a 22% decline for the year as a whole. This summer, GDP would be just one-sixth of what it was in 2022.
Israel is blockading and bombarding large parts of the Gaza Strip in a war that began after the Palestinian militant group Hamas launched unprecedented attacks on Israel on October 7, killing more than 1,200 people.
More than 40,000 people have been killed in the Palestinian territory since the war began, according to the Hamas-controlled health authority in Gaza.
Economic tensions, land occupation, violence by Israeli settlers and the destruction of Palestinian buildings have reportedly had devastating economic consequences in the West Bank as well.
The UNCTAD report covers the Gaza Strip and the West Bank, including East Jerusalem.
The Gaza Strip is also considered occupied territory by the United Nations, as Israel controls all access points.
However, Israel no longer considers itself an occupying power since the withdrawal of troops and civilians from the Gaza Strip in 2005.
In the Gaza Strip, 80% to 96% of agriculture is said to be destroyed or no longer usable, including irrigation systems, livestock farms, plantations, warehouses and machinery.
In addition, 82% of private businesses would be destroyed or damaged, resulting in two-thirds of jobs lost, or 201,000 jobs.
In the West Bank, 96% of businesses reportedly experienced worse conditions, with a total of 306,000 jobs lost.
Families are said to have lost $25.5 million in income.
GDP reportedly fell 19% in the fourth quarter, with an annual decline of 1.9% after a promising development before October 7.
“UNCTAD stresses that prolonged occupation remains the greatest obstacle to sustainable economic development,” the organization said.
UNCTAD, founded in 1964 in Geneva, advocates the interests of small- and medium-income countries in the United Nations. It has 195 member states.
