A new United Nations report paints a grim picture of the Palestinian economy, revealing that the ongoing conflict in Gaza and persistent economic restrictions have triggered an unprecedented economic collapse. The report, released Tuesday, indicates that decades of progress have been effectively wiped out.
According to the UN report, the extensive damage inflicted on infrastructure, productive assets, and essential public services has reversed significant socio-economic gains made in the Occupied Palestinian Territory over the years. The scale of devastation has pushed the Palestinian economy back to levels not seen in over two decades.
Specifically, the report highlights that by the end of last year, the per capita Gross Domestic Product (GDP) had regressed to its 2003 level, effectively erasing 22 years of development. This economic downturn is considered among the ten most severe global economic crises witnessed since 1960.
The report further emphasizes that the sheer magnitude of destruction in Gaza means the region will remain heavily reliant on international aid for the foreseeable future. Recovery efforts are projected to span decades, underscoring the immense challenge ahead.
Beyond Gaza, the report also sheds light on the deteriorating economic situation in the West Bank. The West Bank is currently experiencing its most severe economic recession to date, fueled by stringent movement restrictions and a widespread decline in economic activity across all sectors.
The UN’s findings underscore the urgent need for comprehensive and sustained efforts to address the economic devastation and pave the way for long-term recovery and sustainable development in the region.
