UN makes announcement stating Gaza`s economy ‘in ruins’
Date
9/18/2024 8:14:37 AM
(MENAFN) The United Nations Conference on Trade and Development (UNCTAD) has issued a stark report detailing the catastrophic impact of Israel's ongoing military operations in Gaza, describing the enclave's Economy as being “in ruins.” According to the findings, Gaza's Gross Domestic Product (GDP) experienced an alarming decline, plummeting by 81percent in the last quarter of 2023 and resulting in a 22percent contraction for the entire year. By mid-2024, Gaza's economy has shrunk to less than one-sixth of its 2022 level.
The UN report highlights the extensive destruction of agricultural assets, with estimates suggesting that between 80percent and 96percent have been decimated due to the conflict. This widespread devastation has severely crippled food production capabilities, exacerbating already critical levels of food insecurity in the region.
The private sector, a vital component of Gaza's economy, has also been hard hit. UNCTAD reports that a staggering 82percent of businesses have suffered damage or destruction as a result of the conflict. The ramifications for employment have been dire; as of January 2024, approximately two-thirds of jobs—around 201,000 positions—had been lost. This dramatic job loss has further intensified the already critical economic and humanitarian crisis facing the Gaza Strip.
Prior to the escalation of violence following the October 7 Hamas attack on Israel, 80percent of Gaza's population was reliant on international aid. The current situation has led to a sharp increase in poverty, now affecting nearly the entire population of Gaza, with rapid deterioration also observed in the West Bank.
UNCTAD has called for immediate international intervention to stabilize the economy and support ongoing peace efforts, emphasizing the urgent need for action in the face of escalating humanitarian needs. The report serves as a grave reminder of the profound economic challenges and human suffering resulting from the conflict, urging the global community to address the crisis comprehensively.
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