UN Report: Gaza's Economy Dwindles Amid Israel-Hamas Conflict

A U.N. report reveals Gaza's economy has dramatically contracted, driven by the Israel-Hamas war and falling international aid. The economic decline has led to soaring unemployment in the West Bank. The report calls for urgent global intervention to address the crisis and support long-term stability and prosperity.

Gaza's economy has contracted to less than a sixth of its size since the beginning of the Israel-Hamas conflict nearly a year ago, according to a U.N. report released on Thursday. The report also highlighted a near tripling of unemployment in the occupied West Bank, emphasizing the severe reconstruction challenges ahead.

The United Nations Conference on Trade and Development (UNCTAD) described Gaza's economy as 'in ruins' more than 11 months after Israel commenced its military campaign. The campaign was a response to the deadly Oct. 7 attack by Hamas militants on southern Israel, which has left much of Gaza in shambles. The report noted that the Palestinian Authority (PA), which has limited self-rule in the West Bank, is under significant pressure that threatens its functionality.

Apart from the conflict-induced economic slowdown, the situation has been exacerbated by dwindling international aid and revenue deductions by Israel—amounting to over $1.4 billion since 2019, according to UNCTAD. Israel's Finance Minister Bezalel Smotrich, who ordered the fund withholdings, accused the PA of supporting the Oct. 7 attack, a claim the PA denies. The report calls for immediate and substantial international intervention to halt the economic freefall and address the humanitarian crisis.

(With inputs from agencies.)