UN report: Gaza Strip economy in ruins
Published: Thursday, Sep 12th 2024, 16:00
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Israeli military operations in the Gaza Strip and settler violence in the West Bank have led to devastating economic slumps. The consequences are extreme, especially in agriculture.
According to a UN report, the occupied Palestinian territories have experienced an unprecedented economic slump as a result of Israeli military action. The consequences are growing unemployment and poverty. The Israeli attacks are a reaction to the terrorist attacks on October 7.
In the Gaza Strip, gross domestic product (GDP) collapsed by 81% in the last quarter of 2023. This corresponds to a decline of 22 percent for the year as a whole. "The economy is in ruins," reports the UN Conference on Trade and Development (Unctad) in Geneva. This summer, GDP was only a sixth of what it was in 2022.
Tensions, land occupation and violence by Israeli settlers and the destruction of Palestinian facilities would also have devastating economic consequences in the West Bank.
The report deals with the Gaza Strip and the West Bank, including East Jerusalem. For the United Nations, the Gaza Strip is also considered occupied territory because Israel controls all access points. Since the withdrawal of military and civilians from the Gaza Strip in 2005, Israel no longer sees itself as an occupying power there.
Agricultural sector largely destroyed
In the Gaza Strip, 80 to 96 percent of agriculture has been destroyed or is no longer usable, including irrigation systems, livestock farms, plantations, warehouses and machinery. 82 percent of private companies have been destroyed or damaged. Two thirds of jobs - 201,000 - have been lost.
In the West Bank, 96 percent of companies reported a decline in business. 306,000 jobs have been lost. As a result, families have lost 25.5 million dollars (23 million euros) in income and poverty is spreading. GDP slumped by 19 percent in the fourth quarter, and the decline for the year as a whole amounted to 1.9 percent after a promising development before October 7.
Unctad denounces occupation
"Unctad stresses that the ongoing occupation remains the main obstacle to sustainable economic development," the organization announced. Founded in Geneva in 1964, Unctad is particularly committed to the interests of small and middle-income countries within the United Nations. It has 195 member countries.
©Keystone/SDA
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