(MENAFN) The Palestinian economy is teetering on the edge of collapse as the conflict in Gaza persists, severely impacting economic stability. The ongoing war has not only devastated infrastructure but also significantly disrupted daily economic activities, further exacerbating the dire situation. The inability of thousands of Palestinian workers to access employment opportunities in Israel has compounded the economic crisis, creating a severe strain on an already fragile economic system.

In the first quarter of this year, the Palestinian economy experienced a staggering contraction of 35 percent. This dramatic shrinkage underscores the profound economic challenges faced by the Palestinian territories amid the continuing conflict. The loss of income from jobs in Israel, coupled with the destruction of essential infrastructure and economic resources, has led to a sharp decline in economic activity and productivity.

The blockade and restrictions on movement have severely restricted trade and access to markets, further hampering economic recovery efforts. The situation has left many Palestinian families struggling to meet basic needs, with widespread unemployment and reduced economic opportunities becoming the norm. The economic downturn is not only affecting businesses but also leading to a significant decline in public services and living standards.

As the conflict drags on, international aid and support have become crucial for alleviating some of the immediate hardships. However, the long-term economic recovery will require comprehensive strategies to address the underlying issues of conflict and access to resources. Without substantial intervention and resolution of the ongoing conflict, the prospects for the Palestinian economy remain bleak, with continued economic decline threatening the stability of the region. 

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