UN: Gaza’s economy diminishes to less than one-sixth of pre-war levels by mid-2024
Date
9/15/2024 3:53:48 AM
(MENAFN) According to the latest report from the UN Conference on Trade and Development (UNCTAD), the Economy of the Gaza Strip had diminished to less than one-sixth of its pre-war levels by mid-2024. The report highlighted an extraordinary degree of economic devastation, surpassing the damage experienced in previous conflicts from 2008, 2012, 2014, and 2021. This unprecedented economic decline underscores the severe impact of recent military confrontations on Gaza’s economic landscape.
The agricultural sector in Gaza was particularly hard-hit, with between 80 percent and 96 percent of agricultural assets destroyed by early 2024. This massive loss severely diminished Gaza's food production capacity, exacerbating an already critical level of food insecurity in the region. The destruction of these assets has compounded the challenges faced by Gaza’s population, further straining the humanitarian situation.
The private sector also suffered greatly, with 82 percent of businesses in Gaza being damaged or destroyed. These businesses were essential to Gaza's economic vitality, and their widespread destruction has had a profound effect on the local economy. The report cautions that the damage to Gaza’s productive base is expected to escalate as the ongoing military operations continue, further hindering economic recovery.
In terms of Gross Domestic Product (GDP), Gaza experienced a dramatic decline of 81 percent in the last quarter of 2023, resulting in an overall contraction of 22 percent for the year. By mid-2024, Gaza's economy had contracted to less than one-sixth of its level from 2022. The report also notes that by January 2024, approximately two-thirds of pre-war jobs, totaling around 201,000 positions, had been lost, worsening the already severe economic and humanitarian crisis in the enclave.
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