UN Reports ‘Staggering’ Economic Devastation in Gaza and West Bank Amid Conflict

The United Nations has highlighted the severe economic devastation in both Gaza and the West Bank, following Israel’s military response to an attack by Hamas on October 7, 2023. The report, published by the UN Trade and Development agency (UNCTAD), reveals that Gaza’s economy has shrunk to less than one-sixth of its 2022 level, with nearly 96% of agricultural assets and 82% of businesses damaged or destroyed. This has led to widespread food insecurity and a significant loss of jobs, with unemployment soaring to 79% in Gaza by the end of 2023.

In the West Bank, escalating violence, settlement expansions, and increasing military checkpoints have caused a sharp decline in economic activity, with 96% of businesses reporting decreased operations. Over 306,000 jobs have been lost, and unemployment rates in the region have surged to 32%. The report underscores that the fiscal pressure on the Palestinian government is mounting, with Israel withholding over $1.4 billion in tax revenues in recent years, further exacerbating the economic strain.

Both territories, already grappling with widespread poverty before the conflict, now face even more severe economic challenges, affecting nearly the entire population. The UN report serves as a stark reminder of the ongoing human and economic toll of the conflict.