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

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 NationsConference on Trade and Development (UNCTAD) described Gaza's economy as "in ruins" more than 11 months after Israel launched an offensive there inresponse to the October 7, 2023 attack on Southern Israel by Hamas.

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'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.

"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 acomprehensive recovery plan.

The report also pointed out that declining international aidrevenueand 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.

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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 as95,125 people have been wounded in the Palestinian enclave since the war began.