According to a report by the United Nations Conference on Trade and Development, the ongoing conflict between Israel and Hamas has resulted in a “complete collapse” of Gaza’s economy, projecting that it will take an astounding 350 years for the region to return to the economic levels seen prior to the war.
The report, which was submitted to the United Nations General Assembly, outlines the severe economic costs of the war that began over a year ago. Since October 7 of last year, Gaza’s already struggling economy and infrastructure have been nearly annihilated. Economic activity, which was sluggish before the conflict, has now come to a standstill, hampered by drastic shortages of water, electricity, and fuel, as well as severely restricted access to essential services.
Particularly alarming figures reveal that the construction sector has seen a staggering 96% decline in output, with agriculture down by 93%, manufacturing by 92%, and services by 76%. The unemployment rate in the first quarter of 2024 has soared to 81.7%, and there is a grim likelihood that it may worsen as military operations persist.
The report further emphasizes that even upon achieving a ceasefire, it would take Gaza 350 years to raise its gross domestic product (GDP) back to 2022 levels, effectively stalling any growth trends observed between 2007 and 2022. How does this monumental economic setback affect the aspirations and lives of the people in Gaza moving forward?
