Gaza's shockwaves: West Bank economy plunges, leaving livelihoods in limbo

In the quiet corners of the West Bank, once-thriving markets now stand deserted, echoing the economic fallout from the Israel-Hamas conflict that erupted on October 7. As we explore the repercussions through interviews recorded by AFP, we witness a region grappling with unprecedented challenges, where businesses that once flourished now face an uncertain future.

The human toll on local businesses

Hafeth Ghazawneh, owner of a famous falafel stall, shares his journey from prosperity to uncertainty. Before the conflict, his vibrant breakfast and lunch offerings attracted artisans from nearby workshops. In the aftermath of the attacks, his once-bustling stall sits abandoned, and his income has plunged from 7,000 to 2,000 shekels per month.

The ripple effect on the West Bank economy

Beyond the faltering stalls, the broader West Bank economy is in turmoil. The World Bank predicts a potential six per cent decline in GDP this year.

The International Labour Organization reports 32 per cent job loss. Israel's withdrawal of 130,000 work permits from Palestinians compounds the crisis, leaving many without a source of income and exacerbating an already dire situation.

Businesses struggle to stay afloat

Bishara Jubran, manager of a household products factory, provides insights into the challenges faced by businesses. With losses totalling $200,000 in the past year, his factory, once thriving on exports to Gaza, now struggles to find a market. Increased transport costs, checkpoints, and sealed-off towns further exacerbate the situation, with the West Bank's economy operating at only 50 per cent of its capacity.

Researcher Taher al-Labadi sheds light on the inherent fragility of the Palestinian economy. Hindered by Israel's control over borders and tax collection, the economic downturn has been compounded by unpaid taxes since the war outbreak. The Palestinian Authority, grappling with financial strain, has struggled to pay public servants, intensifying the economic challenges faced by the population.

Bottomline

As the West Bank grapples with the aftermath of the conflict, businesses and communities face an uphill battle. The fear of the unknown looms large, echoing the sentiments of Bishara Jubran: 'We don't know if we'll be able to go to work tomorrow.'