The Israeli military operations in the Gaza Strip and settler violence in the West Bank have led to devastating economic downturns. The consequences are particularly extreme in agriculture.
According to a UN report, the occupied Palestinian territories have experienced an unprecedented economic collapse due to Israeli military actions. The consequences are growing unemployment and poverty. The Israeli attacks are a reaction to the terrorist attacks on October 7.
In the Gaza Strip, gross domestic product (GDP) fell by 81 percent in the last quarter of 2023. This corresponds to a decline of 22 percent for the entire year. “The economy is in ruins,” reports the UN Conference on Trade and Development (Unctad) in Geneva. This summer, GDP was only one sixth of what it was in 2022.
In the West Bank, too, tensions, land occupation and violence by Israeli settlers and the destruction of Palestinian facilities have had devastating economic consequences.
The report deals with the Gaza Strip and the West Bank, including East Jerusalem. The United Nations also considers the Gaza Strip to be occupied territory because Israel controls all access. Since the withdrawal of military and civilian forces from the Gaza Strip in 2005, Israel no longer sees itself as an occupying power there.
Agricultural sector largely destroyed
In the Gaza Strip, 80 to 96 percent of agriculture has been destroyed or is no longer usable, including irrigation systems, livestock farms, plantations, warehouses and machinery. 82 percent of private companies have been destroyed or damaged. Two-thirds of jobs – 201,000 – have been lost.
In the West Bank, 96 percent of companies reported worsening business. 306,000 jobs were lost. Families lost 25.5 million dollars (23 million euros) in income and poverty is spreading. GDP fell by 19 percent in the fourth quarter, and for the year as a whole the decline was 1.9 percent after a promising development before October 7.
Unctad denounces occupation
“UNCTAD stresses that the ongoing occupation remains the main obstacle to sustainable economic development,” the organization said. UNCTAD, founded in Geneva in 1964, is particularly committed to the concerns of small and middle-income countries within the United Nations. It has 195 member countries.
Source: Stern
