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<p>The economy of the Gaza Strip has shrunk to less than a sixth of its size when the Israel-Hamas war began on October 7, 2023, a report by the United Nations (UN) said on Thursday (Sept 12),&nbsp;underscoring the challenges of reconstruction.</p>

<p>The report by the United Nations&nbsp;Conference on Trade and Development (UNCTAD) described Gaza's economy as "in ruins" more than 11 months after Israel launched an offensive there in&nbsp;response to the October 7, 2023 attack on Southern Israel by Hamas.</p>

<h2><strong>'Palestinian Authority under immense pressure'</strong></h2>

<p>The report said that the Palestinian Authority (PA),&nbsp;which exercises limited self-rule under Israeli occupation in the West Bank, is under "immense pressure" that is jeopardising its ability to function.</p>

<p><strong>Also read |</strong>&nbsp;<strong><a href="https://www.wionews.com/world/totally-unacceptable-six-un-staffers-killed-in-israeli-strikes-on-gaza-school-un-chief-condemns-deaths-757967">'Totally unacceptable': Six UN staffers killed in Israeli strikes on Gaza school</a></strong></p>

<p>"The Palestinian economy is in freefall,"&nbsp;UNCTAD Deputy Secretary-General Pedro Manuel Moreno told reporters in Geneva.</p>

<p>"The report calls for the international community to halt this economic freefall, address the humanitarian crisis, and lay the groundwork for lasting peace and development,"&nbsp;Moreno said while calling for a&nbsp;comprehensive recovery plan.</p>

<p>The report also pointed out that declining international aid&nbsp;revenue&nbsp;and withholdings by Israel were adding to the strain on Palestinians.</p>

<h2><strong>'An alarming economic decline in West Bank'</strong></h2>

<p>The report described&nbsp;"a rapid and alarming economic decline" in the West Bank, which has witnessed a surge in violence since the Israel-Hamas war began.</p>

<p><strong>Also watch | World DNA:&nbsp;Will there be a Gaza ceasefire?</strong></p>

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<p>A total of more than 300,000 jobs have been lost in the West Bank since the war began, UNCTAD said, driving up the unemployment rate there from 12.9 per cent to 32 per cent.</p>

<h2><strong>Death toll in Gaza over 41,000</strong></h2>

<p>The death toll in the Gaza Strip due to the Israeli offensive has climbed to more than 41,000. According to the health ministry in Gaza, 34 people were killed in the last 24 hours.</p>

<p>As many as&nbsp;95,125 people have been wounded in the Palestinian enclave since the war began.&nbsp;</p>


The economy of the Gaza Strip has shrunk to less than a sixth of its size when the Israel-Hamas war began on October 7, 2023, a report by the United Nations (UN) said on Thursday (Sept 12), underscoring the challenges of reconstruction.

The economy of the Gaza Strip has shrunk to less than a sixth of its size when the Israel-Hamas war began on October 7, 2023, a report by the United Nations (UN) said on Thursday (Sept 12), underscoring the challenges of reconstruction. The report by the United Nations Conference on Trade and Development (UNCTAD) described Gaza's economy as "in ruins" more than 11 months after Israel launched an offensive there in response to the October 7, 2023 attack on Southern Israel by Hamas. 'Palestinian Authority under immense pressure' The report said that the Palestinian Authority (PA), which exercises limited self-rule under Israeli occupation in the West Bank, is under "immense pressure" that is jeopardising its ability to function. Also read | 'Totally unacceptable': Six UN staffers killed in Israeli strikes on Gaza school "The Palestinian economy is in freefall," UNCTAD Deputy Secretary-General Pedro Manuel Moreno told reporters in Geneva. "The report calls for the international community to halt this economic freefall, address the humanitarian crisis, and lay the groundwork for lasting peace and development," Moreno said while calling for a comprehensive recovery plan. The report also pointed out that declining international aid revenue and withholdings by Israel were adding to the strain on Palestinians. 'An alarming economic decline in West Bank' The report described "a rapid and alarming economic decline" in the West Bank, which has witnessed a surge in violence since the Israel-Hamas war began. Also watch | World DNA: Will there be a Gaza ceasefire? × A total of more than 300,000 jobs have been lost in the West Bank since the war began, UNCTAD said, driving up the unemployment rate there from 12.9 per cent to 32 per cent. Death toll in Gaza over 41,000 The death toll in the Gaza Strip due to the Israeli offensive has climbed to more than 41,000. According to the health ministry in Gaza, 34 people were killed in the last 24 hours. As many as 95,125 people have been wounded in the Palestinian enclave since the war began.

Israel-Hamas war: Gaza's economy shrinks to less than a sixth of its pre-war size, says UN report

The Gaza conflict has brought a harsh new economic reality to Ramallah, the West Bank's de facto capital. Supermarkets have employed security guards to deter shoplifters. Thousands of businesses have closed. One official believes the current economic situation is worse than the one produced by the COVID-19 lockdowns.

Economic crisis deepen in West Bank amid Gaza turmoil

<p>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.</p>

<p><b>The human toll on local businesses</b></p>

<p>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.</p>

<p><b>The ripple effect on the West Bank economy</b></p>

<p>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.</p>

<p>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.</p>

<p><b>Businesses struggle to stay afloat</b></p>

<p>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.</p>

<p>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.</p>

<p><b>Bottomline</b></p>

<p>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.'&nbsp;</p>


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.

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.'

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