According to a recent United Nations report, the occupied Palestinian territory’s economy is experiencing its most severe collapse ever, fueled by the magnitude of Israel’s genocide against Gaza and persistent restrictions on movement and trade.
The UN Conference on Trade and Development (UNCTAD) released a report on Monday, in which it stated that the occupied territory had experienced one of the worst economic collapses ever to occur in the world since 1960 as a result of two years of Israeli military operations and persistent curbs.
Recommended Stories
list of 4 itemsend of list
According to the statement, “Occupied Palestinian Territory has reversed decades of socioeconomic progress in the occupation,” referring to the Gaza Strip and the West Bank, including East Jerusalem.
It warned that Gaza is “the most severe economic crisis on record”.
Despite a six-week ceasefire between Israel and Hamas, Israel continues to attack Gaza as a result of the findings’ publication.
An estimated 1, 139 people were killed and 240 were taken as captives in Gaza after an attack by Hamas and other Palestinian fighters in southern Israel on October 7, 2023.
Israel responded by starting a bombing campaign and strengthening its long-standing blockade of Gaza, putting a 16-year siege into total stranglehold. More than 300 people have been killed since the ceasefire’s start last month, with at least 69 of those killed, 733 of those wounded, and 170 of those who were also killed.
GDP is declining.
By the end of last year, the Palestinian gross domestic product (GDP) had fallen to its 2010 level, while the GDP per capita had fallen to the same level as in 2003, erasing 22 years of development in less than two years.
In Gaza, GDP decreased by 83 percent over the previous year, or $ 362,0, compared to $ 362,0, or $ 86,0, or $ 362,0. The world’s lowest GDP per person was $161, which is below the lowest level ever.
According to the report, nearly two decades of Israeli-imposed restrictions on trade, movement, and access have resulted in a near-total dependence on external aid, while Israeli attacks have damaged approximately 174,500 structures in Gaza, rendering the region’s “utter ruin”
In addition, there are employment losses and access restrictions in the occupied West Bank, which are also the region’s most severe economic decline ever.
The report continued, “Distances have been wiped out by the steepest economic contraction on record across the Occupied Palestinian Territory.”
According to the report, Israel’s inability to pay salaries, maintain services, and fund reconstruction efforts has significantly worsened the situation, severely restricting the government’s ability to pay salaries and support reconstruction efforts.
Israel was withholding $4 billion in tax revenues, according to the PA on Monday.
The recovery process
UNCTAD demanded a comprehensive recovery plan supported by coordinated international assistance, the restoration of fiscal transfers, and urgent measures to ease trade, movement, and investment constraints. It estimated that the cost of reconstruction and recovery in Gaza alone would be more than $70 billion.
Recovery to pre-oct-2023 GDP levels could take decades, it said, despite substantial aid.
The organization also warned that the destruction brought on by Israel’s war and systemic restrictions will result in a long-term decline in the Palestinian economy without a full, large-scale intervention.
According to UNCTAD, the ceasefire reached in October must be sustained for any meaningful recovery.
Source: Aljazeera
Leave a Reply