UN Report: Gaza’s Economy Shrinks to One-Sixth of Pre-War Size Amid Devastation

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A recent United Nations report warns of severe economic devastation in Gaza and the West Bank as a result of Israel's war on Gaza. The UN Conference on Trade and Development (UNCTAD) highlights that Gaza's economy has shrunk to less than one-sixth of its 2022 size. The conflict has disrupted production, wiped out income sources, and worsened poverty, with many neighborhoods and communities left in ruins.

UNCTAD reports that 96 percent of Gaza’s agricultural assets have been destroyed, crippling food production and exacerbating food insecurity in the besieged territory. Additionally, 82 percent of businesses in Gaza have been damaged or destroyed, with Gaza's gross domestic product (GDP) plummeting 81 percent in the last quarter of 2023.

The West Bank has also experienced a significant economic downturn. Factors such as settlement expansion, land confiscation, and increased settler violence have severely impacted the economy, with GDP contracting 19 percent in the last quarter of 2023. High unemployment rates are another concerning issue, with job losses soaring and unemployment in Gaza reaching 79 percent by early 2024.

The report stresses that rebuilding efforts will require tens of billions of dollars and could take decades to restore Gaza’s economy to its pre-2023 state.