Gaza's Economic Collapse Post-Israel-Hamas War: U.N. Report Findings

The Gaza economy has significantly deteriorated since the Israel-Hamas war began, shrinking to less than a sixth of its size. A U.N. report underscores the challenges of reconstruction amidst increased unemployment in the West Bank. The Palestinian economy is in freefall due to declining international aid and new trade restrictions.

A United Nations report issued on Thursday reveals that Gaza's economy has drastically shrunk to a sixth of its size since the Israel-Hamas conflict erupted nearly a year ago. Additionally, unemployment in the West Bank has almost tripled, highlighting severe reconstruction challenges.

The report from the United Nations Conference on Trade and Development (UNCTAD) states that Gaza's economy is "in ruins," more than 11 months after Israel's military campaign, initiated in response to deadly attacks by Hamas militants on October 7th, has devastated the region.

UNCTAD Deputy Secretary-General Pedro Manuel Moreno warned that the Palestinian economy is plummeting and called for international efforts to end this economic decline and address the ongoing humanitarian crisis.

International aid reductions and Israeli revenue withholdings, amounting to over $1.4 billion since 2019, have exacerbated the economic strain on Palestinians.

Israel's Finance Minister Bezalel Smotrich, who authorized the withholding of funds, blames the Palestinian Authority (PA) for supporting the October 7th attack, a claim the PA denies. The report also notes surging violence and new Israeli trade restrictions, leading to the loss of 300,000 jobs in the West Bank and unemployment rising to 32%.

(With inputs from agencies.)